NLC cautious as Buhari okays N30,000 minimum wage bill

★ The Nigeria Labour Congress (NLC) has on yesterday reacted cautiously  to news that President Muhammadu Buhari has assented to the proposed N30,000 National Minimum Wage Bill.

The movement needs concrete proof that the president has indeed signed the law, said NLC General Secretary Dr Peter Ozo-Eson.
Also, some financial experts expressed concern that unless the Federal Government creates an alternative source to fund the wage, the anticipated impact might not be felt in the economy. They said that considering the nation’s huge debt profile, the Federal Government might be constrained in terms of funding the new wage and may eventually opt for the removal of fuel subsidy.

Economist Johnson Chukwu affirmed that the minimum wage would stimulate consumer spending and boost the overall economy by generating increased consumer demand. He said both federal and state governments would struggle in terms of funding, which might ultimately lead to excess borrowing.



A financial expert, Prof. Uche Uwaleke, in his statement, expressed optimism that the Federal Government can service the cash obligation by tinkering with the tax system. He said: “The challenge will come from the state government. The Federal Government should be able to pay because they have factored it into the 2019 budget. Before the end of the year, the Federal Government might be compelled to increase the Value Added Tax (VAT).

Senior Special Assistant on National Assembly Matters, Senator Ita Enang, while briefing State House correspondents after he met Buhari at the Presidential villa, Abuja, said: “You can see me smiling on behalf of Nigerian workers. President Muhammadu Buhari has assented to the minimum wage repealing the old one and Enactment Act 2019. This makes it compulsory for all employers of labour in Nigeria to pay to their workers the sum of N30,000. This excludes persons who are employing less than 25 workers, persons who work in a ship, which sails out of jurisdiction and other persons who are in other kinds of regulated employment, which are accepted by the Act.”

On when the Act comes into effect, Enang said: “The effective date is April 18, 2019, as Mr. President has assented to. It has been assented to today and it takes effect today, except such other provisions as are contained in the Act. But the enforcement and the right to start the implementation of the provisions commences today (Thursday), including such steps that are to be taken gradually under the provisions of the Act.”

The president, while giving his assent, was quoted as saying: “I will like, with the cooperation of the Nigeria Labour Congress (NLC), to look at the economic situation of the country, the population, the poor infrastructure that we are trying to fix in terms of roads, rail and power. So, I wish Nigerian workers the best of luck.