Salaries of those earning above 30,000 minimum wage to be Sliced Down – President Buhari Vowed

President Muhammadu Buhari yesterday said the salaries of all those earning above the minimum wage would be reviewed.

Speaking during the inauguration of the technical Advisory Committee on the implementation of New National Minimum Wage, chaired by Bismarck Rewane, at the council chambers, the president said the process of the review would commence after the passage of the new minimum wage bill.

“However, we anticipate that after the new minimum wage bill has been passed into law,  we will be going into negotiations for salary review for all the workers who are already earning above the new minimum wage. It is therefore important that we are properly prepared to meet these demands,” he said.

The President who said a provision for the new minimum wage has been made in this year’s budget proposal, said he was committed to the upward review of the minimum wage.

“As you know we, at the Federal level, have made adequate provision for the increase in the Minimum Wage in our 2019 Budget proposals which we submitted to the National Assembly.

“Therefore, we will be able to meet the additional costs that will be incurred in moving up all personnel who are currently earning below the new minimum wage,” he said.

Buhari explained that even though the subject of a National Minimum Wage is in the Exclusive Legislative List, they have been meeting with the State governments.

“It is imperative that the Federal Government carries the State Governments along in determining any upward review of the minimum wage for workers.

“This is especially necessary considering the prevailing public sector revenue challenges, which have made it extremely difficult for some of the governments to pay workers as and when due,” he said.

The President added that:  I want to make it clear that there is no question about whether the National Minimum Wage will be reviewed upwards. I am committed to a review of the Minimum Wage.

“We must therefore look at ways of implementing these consequential wage adjustments in a manner that does not have adverse effects on our national development plans, as laid out in the Economic Recovery and Growth Plan (ERGP).

“The ERGP sets appropriate targets for levels of Capital Expenditure, Public Debt, Inflation, Employment, etc. It is absolutely important that the implementation of a new minimum wage does not adversely affect these targets, and thereby erode the envisaged gains for the workers. “

He said they were currently working on the final steps that would lead to the submission of a National Minimum Wage Amendment Bill to the National Assembly.

He said the technical committee was set up  to advise Government on how best to fund the new minimum wage , in a sustained manner, the additional costs that will arise from the implementation of the consequential increases in salaries and allowances for workers currently earning above the new minimum wage.

…Inaugurates panel on new minimum wage implementation

The new minimum wage implementation committee is chaired by the Managing Director of the Financial Derivatives Company, Bismarck Rewane.

The 24-man Presidential Advisory Committee was given a month to submit its report.  The Director General of the Budget office, Ben Akabueze is to serve as the secretary of the committee.

Members of the committee selected from the private sector are former Chairman of the Federal Inland Revenue Service (FIRS), Mrs. Ifueko Omoigui-Okauru, Sulieman Barau, Dr Ayo Teriba, and Prof. Akpan Ekpo.

Those selected from government institutions are Chairman FIRS, Dr Babatunde Fowler, a representative of the Nigeria Governors Forum (NGF), Chairman of the National Salaries, Incomes and Wages Commission, Richard Egbule, Permanent Secretary, Service Welfare Office of the Head of Service of the Federation, Mrs. Didi Walson-Jack, Permanent Secretary General Service Office, Office of the Secretary to the Government of the Federation, Olusegun Adekunle, Permanent Secretary Ministry of Finance, Dr. Mahmoud Isa-Dutse, Permanent Secretary Ministry of Budget and National Planning, Olajide Odewale, Permanent Secretary Ministry of Labour Mrs. Ibukun Odusote, and Solicitor General Of the Federation and Permanent Secretary ministry of Justice Mr. Dayo Apata.

Others are Special Adviser to the President on Economic Matters, office of the Vice President, Dr. Adeyemi Dipeolu; Deputy Governor of the Central Bank of Nigeria, Economic Policy Dr. Joseph Nnanna; Accountant General of the Federation,  Ahmed Idris; Director General Debt Management Officer, Ms. Patience Oniaga; Director General National Institute of Social and Economic Research, Dr. Folarin Gbadebo-Smith; Statistician General, National Bureau of Statistics, Dr. Yemi Kale; Mrs. Aisha Hamad, Mamman Garba and Tunde Lawal.

 Terms of Reference

To develop, and advise government on how to successfully bring about a smooth implementation of impending wage increases;

Identify new revenue sources, as well as areas of existing expenditure from where some savings could be made in order to fund the wage increases without adversely impacting the nation’s development goals as set out in the Economic Recovery and Growth Plan;

Propose a work plan and modalities for the implementation of the salary increases;

Any other suggestions that will assist in the implementation of this, and future wage increases.

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