Business
New Minimum Wage Underway
Chidi Kalu
The Federal Government and the Nigeria Labour Congress (NLC) appear to have agreed that the present minimum wage between N5,500 and N6,500 is no longer realistic. Consequently, a new minimum wage is being worked out.
This is the fall-out of the meeting between the federal government and representatives of Nigeria Labour Congress (NLC) who appeared before the Special Committee on New Minimum Wage led by Justice Alfa Belgore Tuesday and Wednesday this week in Abuja.
At the time of filing this report, it was not certain how much the least paid worker would earn. But both government and labour agreed that the current wage structure cannot meet the needs of Nigerian workers.
The NLC is demanding a minimum wage of N52,000 but the House of Representatives had proposed a new N30,000 minimum wage structure for the country, which had already been passed through the second reading before it was and was rejected by the president Umaru Yar’Adua.
With this agreement, it is expected that the National Salaries and Wages Commission would come up with a rate the Federal Government could afford when the negotiation starts in due course.
The Tide gathered that during the preliminary talks, all the parties submitted their memoranda to the Belgore Committee which was not made available to the press, with the belief that it was made known to the public, it may affect the negotiation.
The major issue now, our correspondent gathered is how to arrive at a reasonable wage that would be accepted and affordable by both parties.
But the parties are hopeful that the negotiation will soon commence as the presidency had directed the Belgore Committee to act within a time frame.
Even though the talks were held behind close doors, the Minister of Finance, Dr. Mansur Muhtar, Minister of Labour and Productivity Adetokunbo Kayode (SAN), Minister of Health, Prof. Babatunde Osotimehi; National Employers Consultative Association (NECA) representatives and labour representatives were reportedly present at the talks.
The current minimum wage came about eight years ago following the passing of the national minimum wage Act 2000 into law.
Although the Act allows a 12.5 to 15 per cent wage adjustment, the NLC says the percentage increase is no longer realistic because of the biting effects of the financial downturn on workers.
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Sugar Tax ‘ll Threaten Manufacturing Sector, Says CPPE
In a statement, the Chief Executive Officer, CPPE, Muda Yusuf, said while public health concerns such as diabetes and cardiovascular diseases deserve attention, imposing an additional sugar-specific tax was economically risky and poorly suited to Nigeria’s current realities of high inflation, weak consumer purchasing power and rising production costs.
According to him, manufacturers in the non-alcoholic beverage segment are already facing heavy fiscal and cost pressures.
“The proposition of a sugar-specific tax is misplaced, economically risky, and weakly supported by empirical evidence, especially when viewed against Nigeria’s prevailing structural and macroeconomic realities.
The CPPE boss noted that retail prices of many non-alcoholic beverages have risen by about 50 per cent over the past two years, even without the introduction of new taxes, further squeezing consumers.
Yusuf further expressed reservation on the effectiveness of sugar taxes in addressing the root causes of non-communicable diseases in Nigeria.
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