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Tag: minimum wage

  • Buhari’s new minimum wage will soon throw Nigeria into chaos – Tony Momoh

    Buhari’s new minimum wage will soon throw Nigeria into chaos – Tony Momoh

    A former Minister of Information, Prince Tony Momoh, has expressed fears that the new N30, 000 minimum wage, signed into law by President Muhammadu Buhari on April 18 would lead to chaos.

    Momoh, who is also a chieftain of the APC stated this while addressing newsmen on Friday in Abuja as part of activities to mark his 80th birthday.

    According to him, while he is happy over the new wage, he holds the view that it will lead to a situation where many states will not be able to pay and this will lead to industrial unrests and strikes.

    “Minimum wage is not a living wage. My prediction is that the N30, 000 minimum wage will cause chaos because many state governments that were paying N7, 500 before N18, 000 was introduced could not pay then.

    “A lot of them are currently finding it difficult to pay N18, 000 now. They are already saying they can’t pay and this will lead to strikes. When that happens, the nation is in trouble.

    “The N30, 000 minimum wage is not a living wage. What is the percentage of the workers in Nigeria that are entitled to the N30, 000 minimum wage? What is the percentage of the public servants compared to the percentage of the entire working population in Nigeria?”

    Momoh, who is also a lawyer, also spoke on the pronouncement the Code of Conduct Tribunal (CCT) on the former Chief Justice of Nigeria (CJN), Justice Walter Onnoghen.

    He said that the argument of some lawyers that Onnoghen shouldn’t have been taken to CCT was not tenable, arguing that such lawyers didn’t know what they were talking about.

    “ I don’t believe that it is a case of witch-hunt. I advised him (Onnoghen) to resign when the case started. That would have saved him from the embarrassment,”

    Momoh said that the CCT and the Code of Conduct Tribunal, established by part one of the fifth schedule of the constitution had powers to deal with sitting presidents and governors.

    “Part two deals with those who are subjected to its jurisdiction, which is the President, Vice-President, CJN, down to councillors. The CCT is a disciplinary body.

    “Onnoghen is a public servant before he became the CJN. His case was directed to the Code of Conduct Bureau, which transferred it to CCT,” he said.

    Also speaking on the composition of the leadership position for the 9th National Assembly, Momoh said that the reliance of the APC on party supremacy to impose its candidates would not work.

    He said that claims of party supremacy could only be effective in a parliamentary not presidential system of government because the political party with the majority would always form the government in the former.

    Momoh recalled that since 1999, efforts by political parties to impose their candidates on the nation’s parliament had always been resisted by federal lawmakers.

    He added that the National Assembly had its own personality that it always protected, in spite of political party differences, adding that party’s choice could only succeed if there was cooperation and not by imposition.

    “In 1999, Evans Enwerem was not the choice of the senators. They wanted Chuba Okadigbo. So, Enwerem did not last when he emerged. Also in 2015, the party wanted Femi Gbajabiamila but Yakubu Dogara got it.

    “Since 1999, there have always been problems between the legislators and the party’s candidates. The legislators come together to pursue common interests and party supremacy is obviously not one of them.

    “In the parliamentary system, the party with the majority will dominate leadership positions in the parliament. The prime minister is also a member of the parliament.”

    The former minister also stressed the need for restructuring of Nigeria as a way of ensuring good governance in the country, arguing that Nigeria was too top heavy in administering governance.

    Momoh said that the country needed to decongest the political space, saying that the National Assembly made laws in 93 areas comprising the exclusive and concurrent lists.

    “In federations worldwide, we don’t need more than 18. The rest should go to regions. They know what to do with it.

    “The senate will become the only law-making arm of the federation while the House of Representatives should go to the regions and be making laws for their people.

    “When this happens, economic deregulation is automatic because everybody will contribute to run the centre.’’

    Momoh advised media practitioners to acquire necessary knowledge from the constitution of the country for them to effectively perform their roles as watchdogs to government and to enlighten the citizens.

  • N30,000 minimum wage, another election promise delivered – APC

    N30,000 minimum wage, another election promise delivered – APC

    The All Progressives Congress (APC) says the signing into law of N30,000 minimum wage for Nigerian workers by President Muhammadu Buhari is another election promise delivered.

    Malam Lanre Issa-Onilu, APC National Publicity Secretary, made the assertion in a statement on Friday in Abuja, while commending Buhari for signing the new minimum wage bill into law.

    “Truly, our workers deserve a new, improved and implementable minimum wage in view of current economic realities.

    “Commendably, the welfare of workers has remained a top priority of the Buhari-led APC administration,” he said.

    The APC spokesman said that this has been demonstrated by the Federal Government’s bailouts to states to pay workers salary and housing schemes for civil servants among other welfare packages in 2018.

    Issa-Onilu congratulated stakeholders that ensured the achievement of this laudable feat, particularly the National Assembly, state governors, the Amma Pepple-led tripartite committee, labour and trade unions and indeed Nigerian workers.

    “The signing of new minimum wage is another solid demonstration of a President who matches his words with actions,” he said.

    The APC spokesman recalled that Buhari had severally assured of a new and improved national minimum wage for workers.

    “The assent of the N30,000 minimum wage by the president is indeed another election promise delivered,” Issa-Onilu said.

    The News Agency of Nigeria(NAN) reports that Buhari signed into law the Minimum Wage Repeal and Re-Enactment Act 2019 on Thursday.

    By this act, the new minimum wage for Nigerian workers is now N30,000 monthly.

    All employers of labour across the country with at least 25 workers are mandated by the law to pay their workers a minimum of N30,000 monthly wage.

    The National Assembly had submitted the minimum wage Bill to the President since March 27.

    The Bill approving N30,000 as the new national minimum wage was passed by both chambers of the National Assembly before they went on break for the 2019 general election.

    The Nigeria Labour Congress (NLC) and other trade unions had in 2018 insisted on an upward review of the monthly wage of Nigerian workers which was N18,000 before now.

    The NLC had used various means, including dialogue and calling for strike to get the federal government and other stakeholders to see reason why the wage of the Nigerian worker needed to be reviewed upward.

  • Presidency clears air on implementation of N30,000 minimum wage

    Implementation of the N30, 000 minimum wage just signed into law by President Muhammadu Buhari takes effect from April 18, a presidential aide, Mr Ita Enang, has announced.

    Enang, who is Senior Special Assistant to the President on National Assembly Matters, told State House correspondents on Thursday in Abuja that the Minimum Wage Repel and Enactment Act, 2019 has replaced the existing one.

    According to him, the bill now makes it mandatory for employers of labour in both public and private organisations to pay N30, 000 as minimum wage.

    “You can see me smiling on behalf of Nigerian workers. President Muhammadu Buhari has assented to the Minimum Wage Repel 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.

    “It also gives workers the right if you are compelled by any circumstance to accept salary that is less than N30, 000 to sue your employer to recover the balance.

    It also authorises the minister of labour and any person nominated by the minister or any person designated by the minister of labour in any ministry, department or agency to on your behalf, take action in your name against such employer to recover the balance of your wages.

    According to the presidential aide, the bill ensures and mandates the National Salaries, Income and Wages Commission and the minister or labour, to be the chief and principal enforcers of the provisions of this law.

    “This law applies to all agencies, persons and bodies throughout the Federal Republic of Nigeria.”

    Enang, enjoined Nigerian workers to continue to support the president and his administration’s policies in return for the gesture.

    “Mr President will celebrate with workers and the Federal Government will celebrate. This is Mr President showing workers the love he has for them and we will match with the Nigerian workers.”

    Asked if it the new minimum wage covers the National Youth Service Corps, Enang said, “It covers all persons covered by the Act.”

  • BREAKING: Buhari signs new national minimum wage bill into law

    President Muhammadu Buhari has signed the new national minimum wage bill into law, bringing into existence a new pay structure in Nigeria.

    TheNewsGuru (TNG) reports the law approves the sum of N30,000 as national minimum wage for both the federal and state governments.

    President Buhari signed the new national minimum wage bill into law on Thursday, a source confirmed to TNG in Abuja.

    Senior Special Assistant to the President on National Assembly (Senate), Sen. Ita Enang, confirmed this development when he briefed State House correspondents in Abuja on Thursday.

    President Buhari had in January sought the approval of N27,000 as against the N30,000 agreed upon by stakeholders.

    However, the Senate and the House of Representatives approved the sum of N30,000 as the new national minimum wage.

    Enang stated that signing of the new minimum wage by the president had made compulsory by employers of labour to pay the N30,000 as minimum wage.

  • Hamonise minimum wage for quick assent – TUC tells NASS

    Mr Bobboi Kaigama, the President of Trade Union Congress of Nigeria (TUC), on Monday called for quick hamonisation of the N30,000 national minimum wage bill to enable President Muhammadu Buhari assent to it.

    Kaigama spoke to the News Agency of Nigeria (NAN) in Lagos on the implementation of the new minimum wage.

    NAN reports that the leadership of the Nigeria Labour Congress had urged the President to sign and implement the new wage before the end of the 8th National Assembly.

    The TUC president said that the House of Representatives and the Senate needed to harmonise the agreed sum and pass it to the President for his assent.

    ”The N30,000 figure is one, but the aspect of law might not be the same. There is the need to come together and harmonise, produce a clean copy and forward to Buhari to sign.

    ”If that is not done as soon as possible, it will be difficult for the President to sign and implement the agreed national minimum wage.

    ”The day Buhari signs the new minimum wage bill, it becomes a law effective from that day,” he said.

    The labour chief said that implementation would be seamless since the Federal Government had said that it included its provision in the budget, but might take a while in some states that had not included it in their budget.

    He urged the private sector not to delay its implementation as soon as the bill is enacted into law.

    The TUC president advised the government to look into the issues of punishment for minimum wage defaulters and frequent review of the process.

    He also said that Value Added Tax should not be tied to the implementation of the new wage, particularly in the public sector.

    ”VAT is paid by consumers; it is paid by the lower class, while the business conglomerates and corporate organisations don’t pay appropriate tax.

    ”It is unfair to tell workers who pays appropriate tax that you will tie VAT to minimum wage. The organised labour disagrees with the government,” he said.

    Kaigama said that labour would resist any plan to fund the new minimum wage through increase in VAT.

  • JUST IN: Buhari receives report on Minimum Wage funding

    President Muhammadu Buhari on Monday received advisory report on how to fund the newly increased workers’ minimum wage.

    The bill to increase the minimum wage to N30, 000 is still before the National Assembly.

    Buhari received the report from the Technical Committee on the Implementation of the new minimum wage at the Presidential Villa, Abuja.

    Buhari thanked the committee for submitting the report before the bill was passed into law.

    He assured that the government will expeditiously study the report towards its implementation.

  • N30k Minimum wage: Fowler denies recommending 50 per cent increase in VAT, others

    The Federal Inland Revenue Service (FIRS), has dismissed media reports quoting its Chairman, Mr. Tunde Fowler, as suggesting an increase in the rate of of Value Added Tax (VAT) from five per cent to 50 per cent.

    Various media outlets, Tuesday, quoted Fowler as recommending a hike of that proportion during a meeting with members of the Senate Finance Committee at the 2019-2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (PSP) in Abuja.

    In a statement issued by its Communication Unit, the FIRS said what Fowler recommended is an increase in the number of individuals and business entities paying VAT. The Service also rebutted reports that Fowler called for an increase in the rate of Companies Income Tax (CIT), stating that what the FIRS boss suggested is a reduction in CIT rate for small businesses, so as to improve compliance.

    The statement, signed by Wahab Gbadamosi, Director, Communication and Servicom, said while Fowler suggested an increase in VAT rate by the end of the year, it was not by 50 per cent.

    Rather, the FIRS explained in the statement, Fowler promised improved collection in CIT, Petroleum Profits Tax, (PPT) and VAT in 2019 relative to the collection performance of the Service in 2018.

    In 2018, the FIRS collected the sum of N1.1 trillion in VAT, N1.42 trillion in CIT and N2.4 trillion in PPT.

    Asked by Senator John Enoh (Chairman, Senate Committee on Finance) how the FIRS aims to surpass the record revenue collection of N5.32 trillion last year in view of the fact that it has been given a target of N8 trillion for the current year, the statement said Fowler responded that the FIRS has increased VAT collection over the last three years by over 25 per cent.

    “In terms of whether there should be an increase, I believe there should be an increase.

    “One issue about taxation is that it should be fair to all. We have discovered after VAIDS (Voluntary Assets and Income Declaration Scheme) that a high percentage of businesses are collecting VAT and not remitting.

    “We’ve also tried to address this issue. We’ve issued new VAT certificates. We have appealed to the public that if they are charged VAT and they are not sure it had been remitted, they should contact us. We even gave a small promotion that for every 25 names that they give to us, we give them a little gift either a power bank or something to show appreciation.

    “But that aside, we are also on the streets. We have a team called FEETT (Federal Engagement and Enlightenment Tax Teams) going around to confirm that businesses are registered for VAT.

    “I believe with the substitution of over 50,000 bank accounts that we just started this week, I am sure that those businesses that have been collecting VAT and not remitting the same or not remitting any tax payment are beginning to ensure that the level of tax compliance is improved.

    “I believe that by the end of this year, government and Nigerian people should be ready for an increase in VAT,” the statement quoted Fowler as saying.

    The FIRS boss noted that many Nigerians travel to Ghana and other West African countries where VAT rates are much higher, adding that as the economy improves, there will be an increase in VAT and they should be ready for it.

    He described the target of N8 trillion as challenging, but foresees an increase in the VAT collection rate of between 35 to 50 per cent this year because of improved enforcement activities.

    Responding to a question by Senator Yusuf Abubakar Yusuf on why the CIT rate has remained at 30 per cent, Fowler said: “My personal opinion is that the rate of CIT should remain at 30 per cent, to make sure that we do not reduce the tax rate, without getting others who are not in the tax net into the tax net.

    But for small businesses, it’s a discussion we are having with the Ministry of Finance for people who are having a certain turnover. I believe that that can be reduced to may be 20 per cent to promote the small-scale businesses. But in terms of immediate reduction, I think we should try and stabilize to ensure a 90 per cent compliance of those in the tax net.”

  • FG states condition to pay N30,000 minimum wage

    The Federal Government has said it is not opposed to payment of the newly approved N30,000:00 minimum wage as a way of improving the welfare of the ordinary Nigerian.

    However, the government noted that to fund the increment, it will have to increase Value Added Tax by 50 per cent.

    This was revealed by the duo of the Minister of Budget and National Planning Mr Udom Udoma and the chairman of the Federal Inland Revenue Service, Mr. Babatunde Fowler.

    Both senior government officials said the VAT increment will help create the required funds to meet the new wage obligation being approved by the National Assembly.

    Messrs Udoma and Fowler were amongst senior government officials who appeared before the Senate Committee on Finance headed by John Enoh.

    The Senate on Tuesday passed for third reading a bill seeking to increase Nigeria’s minimum wage from N18,000 to N30,000.

    The House of Representatives earlier passed the same bill. Both houses must agree and the president must sign the bill to become law.

    The officials were summoned by the Senate committee to explain details of the 2019-2021 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

    Fowler said the proposed payable VAT based on the increment would be between 6.75 per cent and 7.25 per cent as against the 5 per cent on all products in the country.

    This implies an increase of between 35 per cent and 50 per cent.

    He added that the increment will affect the Company Income Tax and the Petroleum Profit Tax.

    “By the end of this year, we should be ready for an increase in the VAT. A lot of Nigerians travel to Ghana and other West African countries and they can see that theirs is much higher. They pay when they go for those trips. We should be ready for an increase on VAT,” he said.

    “I can certainly see an increase in VAT of at least 35 per cent to 50 per cent this year based on our enforcement activities. There certainly will be an increase in Company Income Tax and also on Petroleum Profit Tax,” Mr Foweler said.

    Udoma explained that the increment is necessary in order to create funds for the minimum wage.

    “It will be recalled that as a result of agitations from the unions that the President set up a tripartite committee to look at the Minimum Wage.

    “Every five years, it is supposed to be reviewed. It has not been reviewed even though there is no doubt that for both the Federal Government and states; it is a tough time to review wages. But the N18,000 is really too low and it is difficult for people to live on N18,000.

    “The President supported a revision but it is important that as we are revising (the Minimum Wage), we make sure that it can be funded. That is why we set up the Bismark Rewane Technical Committee.

    “So we will be coming to you. There may be some changes maybe in VAT and other things. But we will be coming to you in order to make sure that we can fund the Minimum Wage.

    “Not just fund the Minimum Wage but as you announce it, you now enter into negotiations with those above the Minimum Wage and we have to be prepared for that.”

    On wages of workers above the minimum wage, Mr Udoma said a new scale would be subject to negotiations which will start soon.

    “On minimum wage, there is an issue of what about the other levels. Those will be subject to negotiation. Normally after you announce minimum wage, you’ll now (go) into negotiations, probably demands from people who are earning more than that.

    “It (new wage) will be subject to those negotiations. Federal government will have negotiation, state government will have negotiations. At this level, we’ll also throw open our books and show in terms of ability to pay will be taken into account.”

     

  • Breaking: Senate Approves N30k minimum wage report

    The Nigerian Senate has just passed the Report of the Ad-hoc Committee on the National Minimum Wage on the National Minimum Wage Act CAP N61 LFN (repeal and re-enactment) Bill, 2019 (SB. 722).

    The Bill, which was laid and presented by Senator Francis Alimikhena, sets the new minimum wage at N30,000.

    Speaking on the passage of the Bill, President of the Senate, Dr. Abubakar Bukola Saraki said:

    “Let me join our colleagues to commend the efforts of the committee. More importantly, let me commend the patience of Nigerian workers and the leadership of the Labour Union, who have over the years been calling for this minimum wage and have carried their efforts responsibly.

    “I want to commend the leaders of the organisations of the union. Let me also state that as government, we should ensure that at times like these, we should not wait for there to be strikes to do what is truly deserving for our workers.

    “I hope that with this minimum wage our workers will double their efforts to increase their productivity, so that we can also improve the general productivity of the country.

    “It is my hope that the implementation of this will start immediately,” the Senate President said.

  • Fight governors who resist payment of N30,000 minimum wage, Falana tells labour

    Fight governors who resist payment of N30,000 minimum wage, Falana tells labour

    Human rights activist Femi Falana (SAN) has called on the organised labour to “fight” any governor who is unwilling to pay the N30,000 minimum wage.

    Speaking at the 12th Quadrennial National Delegates Conference of the Nigeria Labour Congress (NLC) in Abuja, Falana said the first part of the new minimum wage battle had been won; the second is to compel state governments to pay.

    “Labour should unite to fight any governor who may not want to pay the N30,000 minimum wage. States should cut their expenses and engage in income generating ventures.

    “As for the workers, let the general elections be the last time that it will be left for our leaders to decide. Workers should come together. They should be the one to decide,” Falana said.

    The NLC President, Comrade Ayuba Wabba, reiterated the urgency for the need to pass the minimum wage bill by the National Assembly.

    “For millions of workers, an increase in the minimum wage is urgently needed to ensure a living wage that covers the cost of basic needs for a family.

    “Workers must be able to freely bargain collectively through their union for wages that reflect the tone value of the work they do and for decent working conditions.

    “On January 29, this year, the House of Representatives passed into law a new national minimum wage of N30,000. It is expected that upon the passage by the Senate, a conference of the two chambers of the National Assembly will harmonise the bill and send the National Minimum Wage (Amendment) Act to Mr. President for signing into law.

    “We appreciate and commend the House of Representative for the expedited action taken on the new national minimum wage bill,” he said.

    Wabba commended the Federal Government for releasing about N1.9 trillion to states for bailout, budget support and Paris club refund.

    He said: “The release of about N1.9 trillion in the form of bailout, budget support and Paris Club Refund assisted greatly in addressing the non-payment of salary, pensions and gratuity in many states especially worker-friendly governors. In some few instances, the funds were diverted and the situation has not been fully addressed.”

    Wabba said the economy given its vast potential, amid diverse challenges, showed some promises in recent times.

    “According to the National Bureau of Statistics (NBS), Nigeria’s Gross Domestic Product (GDP) grew by 1.81 per cent in real terms in the third quarter of 2018.

    “This is slightly better than the growth of 1.17 per cent achieved in the third quarter of 2017. The recent GDP growth and increase in internally generated revenue are signs of the steady recovery of our economy from recession. Despite these results, our economy remains largely import driven and dependent. The growth in the size of our economy – the biggest in Africa – is still non-inclusive as the gap between the rich and poor continues to widen. Though described as mixed, our economy is essentially rent-seeking and still suffers from systemic distortions,’’ he said.