Minimum Wage: ‘New Fuel Price May Induce Fresh Negotiation’, Expert Speaks

• Families and operators of businesses in Nigeria have continued to decry the recent hike in fuel prices as they grapple with the escalating cost of living amid widespread discontent in the country
• In a nation where survival is already a daily battle, the recent hike in petrol prices has cast doubts on the effectiveness of the newly increased minimum wage
• Among others, a top economist, Paul Alaje, asked Nigerians to brace up for higher inflation in the present month of September

Legit.ng journalist, Ridwan Adeola Yusuf, has over 9 years of experience covering public journalism.

FCT, Abuja – As attention remains on the implementation of the national minimum wage, Paul Alaje, chief economist at SPM Professionals, on Sunday, September 8, said the new premium motor spirit (PMS) price may force a new salary negotiation.

Alaje said this in a post on his verified X (formerly known as Twitter) page amid the present hardship in the country.

He wrote:

“The new pump price may induce a new negotiation including minimum wage=Note the exchange rate has fallen to N1,600.

With these two realities, expect:

1. An increase in food price.

2. A higher cost of transportation.

3. Higher inflation for September.”

Legit.ng reports that Nigerian lawmakers passed legislation in July to more than double the minimum wage to N70,000 a month, ending months of wrangling between the government and labour unions.

The wage bill, which passed at an accelerated hearing, amends the 2019 minimum wage law, cutting the review period for public wages to three years from five years.

Nigeria’s main labour unions had agreed on the new minimum wage after talks with the government following months of deadlock and the threat of strikes.

Subsequently, President Bola Tinubu signed the minimum wage bill into law.

While some states have started implementing the payment, several governors and the federal government have yet to implement it.

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NLC speaks on minimum wage implementation

Earlier, Legit.ng reported that Joe Ajaero, the president of the Nigeria Labour Congress (NLC), asked his colleagues to ensure that all workers in the country benefit from the new national minimum wage of N70,000.

Ajaero who spoke at a two-day workshop for the northern zone of the country, asserted that the national minimum wage exercise cannot be said to be complete until it reaches all of our members wherever they may be working.

Source: Legit.ng