Editorial
Task Before New Minimum Wage Committee
Apparently succumbing to persistent agitations by the organised labour in the country, coupled with the prevailing economic realities the Nigerian workers face, the Federal Government finally bowed to pressures by inaugurating a 30-man tripartite committee to review the current minimum wage.
The committee, headed by a former Minister and Head of Service of the Federation, Ms Ama Pepple, was charged with the task of recommending a fair, decent and living wage for Nigerian workers. With this development, it appears that the machinery for a new minimum wage regime for the country is underway.
Inaugurating the committee in Abuja, penultimate Monday, President Muhammadu Buhari said the re-negotiation of a new national minimum wage had become imperative as the current wage instrument has expired and “in recognition of the need to ensure a fair deal for workers.”
As President Buhari succinctly put it, “minimum wage must be consensual and generally acceptable and should be anchored on social justice and equity.”
The President went further to implore the committee to apply principles of full consultations with stakeholders while bearing in mind the core provisions of the International Labour Organisation Minimum Wage Fixing Convention N0 131 and Minimum Wage Fixing Machinery Convention No 26 in the task ahead.”
The Tide commends President Buhari for conceding, albeit belatedly, to the demands of Nigerian workers to have a new minimum wage. Given the economic realities in Nigeria today, there is no gainsaying the fact that a review of the current N18,000 minimum wage put in place by late President Shehu Yar’Adua and implemented by his successor, President Goodluck Jonathan’s administration five years ago is inevitable.
We, therefore, implore the new minimum wage committee to expediently hasten the process to enable the Presidency present an executive bill to the National Assembly for a new national minimum wage regime, more so that the present one had expired since 2015.
We expect the committee to come up with a living wage for Nigerian workers who bear the brunt of economic malaise in the country, occasioned by high inflation, devaluation of the Naira and over 300 per cent increase in pump price of petroleum products with its adverse effects on prices of goods and services.
Considering the fact that the current N18,000 minimum wage is just about $40, it is incontrovertible that the paltry wage can hardly take any Nigerian worker home. This underscores the high level of corruption in Nigeria’s public sector, as workers look for the slightest opportunity to make ends meet.
More appalling is the fact that the current N18,000 wage is being implemented in the breach by some employers of labour, especially states and local governments which initiate all manners of deductions from workers’ salaries.
The Tide is not unaware of state governments’ agitation for upward review of their allocations from the federation account. While we acknowledge the challenges some of the states are facing, we insist that a new minimum wage is long overdue. We, therefore, appeal to the state governors, many of whom are owing salaries for months, not to jeopardise the process of having a living wage for Nigerian workers.
As members of the new minimum wage committee, the governors are expected to demonstrate sufficient maturity, sympathy and commitment to workers’ welfare by working in synergy with other stakeholders in the committee to ensure the adoption of an acceptable new national minimum wage.
Indeed, posterity beckons on the Ama Pepple-led committee and most especially the governors who, in the first instance, rode to power on the mandate of Nigerian workers. The time to truly appreciate the mandate given to them by workers is now.
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Editorial
Making Rivers’ Seaports Work
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
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