The Federal Government and the leadership of the Organised Labour have reached an agreement to set the new minimum wage for Nigerian workers at ₦70,000.

This decision was announced by the Minister of Information, Mohammed Idris, following a meeting between President Bola Tinubu and the leaders of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) on Thursday in Abuja.

“We are happy to announce today that both the Organised Labour and the Federal Government have agreed on an increase on the N62,000 minimum wage. The new national minimum that Mr President is expected to submit to the National Assembly is ₦70,000,” Idris stated to State House correspondents.

Present at the meeting were NLC President Joe Ajaero, TUC President Festus Osifo, Labour Minister Nkiruka Onyejeocha, and other officials from both sides. Ajaero confirmed the agreement on the ₦70,000 minimum wage and highlighted a significant change in the wage review cycle. “We will not wait for another five years to come and agree,” he said, noting that the minimum wage will now be reviewed every three years.

Labour Minister Onyejeocha added that President Tinubu had instructed the Ministers of Finance and Budget, Wale Edun and Atiku Bagudu, to resolve outstanding issues with the Senior Staff Association of Nigerian Universities (SSANU) and the Non-Academic Staff Union of Educational and Associated Institutions (NASU).

This agreement follows a series of talks between labour leaders and the President after months of failed negotiations between labour unions and a tripartite committee on the minimum wage, constituted by the President in January.

The committee had proposed ₦62,000, while labour demanded ₦250,000, citing the current minimum wage of ₦30,000 as unsustainable due to inflation and the high cost of living, exacerbated by the removal of the petrol subsidy.

President Tinubu had previously emphasized the need for realistic expectations and structural considerations in determining the new minimum wage. His remarks during a Democracy Day speech on June 12, 2024, hinted at the forthcoming executive bill on the national minimum wage, which the information minister confirmed would be communicated to the National Assembly soon.