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Proposal: N’Assembly Eyes Funds Seizure From Minimum Wage Offenders

Published

5 months ago

Jun 15, 2024.

Proposal: N’Assembly Eyes Funds Seizure From Minimum Wage Offenders.
Sanctions could include seizing allocations from entities failing to pay the approved minimum wage.
President Tinubu expected to send the Wage Award Bill soon, aiming to resolve ongoing wage disputes with unions and the Organised Private Sector (OPS)

EKO HOT BLOG reports that the National Assembly has resolved to enforce compliance with the approved minimum wage by states, local governments, and the Organised Private Sector.

A source speaking to Punch anonymously indicated that allocations could be seized from defaulting entities. Plans are underway to incorporate sanctions in the new minimum wage bill, anticipated after President Bola Tinubu submits the Wage Award Bill.

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Senate spokesperson Yemi Adaramodu confirmed the Assembly’s commitment to swiftly pass the bill upon receipt, expected after the Sallah recess on July 2.

President Tinubu pledged to forward the bill in his recent Democracy Day address, amid ongoing disagreements between the Federal Government and labour unions over wage levels.

Labour unions have repeatedly dismissed the government’s offer, labelling it a “starvation wage”.

The Assistant General Secretary of the NLC, Chris Onyeka, stated that Organised Labour would not accept the latest offer of N62,000 or the N100,000 proposal suggested by some individuals and economists.

Expressing concern over the labour leaders’ demands and the potential economic repercussions, the Minister of Information and National Orientation, Mohammed Idris, stated on Wednesday that the N250,000 minimum wage proposal could destabilise the economy, lead to mass layoffs, and jeopardise the welfare of Nigerians.

Despite labour’s firm stance on the N250,000 minimum wage, the President emphasised that the government would pay workers what it could afford.

Addressing concerns about compliance, especially given that some states still pay the old N18,000 minimum wage, while others comply with the current N30,000, Adaramodu assured that the new bill will be “watertight”.

He added, “We will ensure it is strictly adhered to as law. The bill will include provisions for sanctions against non-compliance.”

“We are going to produce a watertight bill that we are proposing for the President to sign to ensure that it is strictly adhered to as law. For now, let’s not speculate on the details that the Federal Government will include in the bill to be submitted to the National Assembly.

“But, when it comes, whatever is there and whatever is not, we will ensure that it’s watertight and obeyed by all,” Adaramodu emphasised.

He added, “When we talk about the minimum wage, is it just about the Federal Government? It seems like it’s a fight between the Federal Government and labour. That’s the way everybody is looking at it. We keep mentioning the Federal Government, President Tinubu, and labour. We don’t even talk about the Organised Private Sector or the sub-nationals. The NLC, which recognises the workers in the organised private sector and the sub-nationals, needs to advocate for them.”

“The issue of some states still paying N18,000, though I don’t know because I don’t suspect that to be happening. If some states are paying that, what have the labour unions in those states done to ensure compliance with the N30,000 minimum wage? We need to ask them too. But, like I said, the National Assembly will make this law seriously watertight, with sanctions for non-compliance, whether at the state, sub-national, or organised private sector level,” Adaramodu stated.

The Senate spokesperson added that if such measures were not taken in the past, the 10th Assembly would ensure sanctions for defaulters of the newly agreed minimum wage. “That’s how it’s going to be done this time around. But the labour centres also need to protect the welfare of their members, not only with the Federal Government,” Adaramodu reiterated.

Speaking on the possibility of sanctioning state governors, Adaramodu noted that the National Assembly makes laws for the entire country. “The National Assembly makes laws for Nigeria, not just for President Tinubu,” he stated.

Minimum Wage Offenders

When asked about the specific sanctions to expect, the Senate spokesperson said it would be premature to give a definitive answer before the President sends the bill.

“When the executive bill comes and we sit in the chamber during plenary, there will be opinions. The bill, when passed, will progress to the public hearing stage where we will invite not only legislators but also organised labour to contribute to making the law. When that time comes, we will decide on the appropriate sanctions for non-compliance, because we believe that the committee meeting to arrive at an acceptable minimum wage for Nigerian workers includes all necessary stakeholders, including the government, organised labour, and the organised private sector. Whatever result they come up with, we’ll make it law, and nobody will come and speak ambiguously,” he explained.

However, Adaramodu emphasised the urgency and commitment to ensuring Nigerian workers received an improved wage package. “If the bill is presented right after Sallah, we will handle it with lightning speed. It will be passed, because it benefits Nigerian workers,” the legislator affirmed.

Addressing concerns about the timeline for the bill’s passage, the legislator stressed the efficiency of the legislative process. “Even if it is possible within 30 minutes, we will do that. The bill will go through all necessary stages, but we aim to avoid any unnecessary delays,” he said.