Business
Minimum Wage Deregulation; TUC Gives Senate One-Week Ultimatum
Large crowd at the mega rally
The Trade Union Congress (TUC) has given the Nigerian Senate a one-week ultimatum to clarify its position on the removal of Minimum Wage Laws from the Exclusive List.
In a communiqué jointly signed by the President of the union, Mr Bobboi Kaigama and the National Secretary, Mr Musa Lawal, TUC said this was necessary before a follow-up action.
The communiqué came at the end of an emergency meeting of the TUC Central Working Committee in Lagos State on Saturday.
According to the communiqué, the purported amendment by the Senate, if allowed to stand, would produce a number of undesirable implications.
He said, “The CWC observed that there are conflicting reports as to the true state of affairs.
“So, the leadership of the National Assembly should clarify the true position of the amendment within one week from today.
“We say ‘NO’ to the minimum wage deregulation and we resist the attempt with our capacity.
“The CWC-in-session mandated the leadership of TUC to relate with the NLC and allies in civil society organisations to mobilise without further delay for a follow-up action.”
It said the amendment would create a chaotic and potentially destabilising industrial relations environment in the country.
“Politics will be introduced into wage determination, in particular during elections, as was the case in the First Republic among Regional Governments.
“Minimum wage which is a product of collective bargaining should not be made a state law, because both the private and public sectors are involved,” the communiqué read.
It also added that the amendments would negate the spirit and practice of the International Labour Organisation Convention 131 which the nation domesticated in the 1979 Constitution.
“While we give them one week, our mobilisation has commenced. Immediately after the expiration of the one week, there will be follow-up action and nothing more.
“We will not get back to them anymore. We want the Senate to be very explicit,” the TUC said.
The communiqué commended the House of Representatives for voting to retain the minimum wage on the exclusive list in its amendment.
Removal of the minimum wage from the exclusive list empowers states and individual employers to decide on and set their own minimum wage.
This would be done without recourse to the national minimum wage.
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
