Minimum Wage: Buhari Appoints Rewane To Head Committee

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*Says salaries of those above new minimum wage will be renegotiated

by Augustine Ehikioya,

President
Muhammadu Buhari on Wednesday appointed Bismarck Rewane as head of
newly inaugurated Technical Advisory Committee on the implementation of a
National Minimum Wage.

Inaugurating the committee before the
commencement of the Federal Executive Council meeting at the Council
Chamber of the Presidential Villa Abuja, Buhari said that after the new
minimum wage has been passed into law, government will go into
negotiations for salary review for all the workers who are already
earning above the new minimum wage.

According to him, it was
important to properly prepare the minds of those involved so that they
will not be taken unawares when the time comes.

Pointing out that
the last time Nigeria’s national minimum wage was reviewed was in 2011,
he said that it was evident that a review was necessary, despite the
prevailing fiscal challenges.

He said “This is why I constituted
the Tripartite Committee of Government, Organized Private Sector and
Labour to consider the National Minimum Wage and make recommendations to
Government for its upward review.

“That Committee has since
submitted its report with some recommendations. We are currently working
on the final steps that will lead to the submission of a National
Minimum Wage Amendment Bill to the National Assembly.

“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.

“Also, it is important to explain that even though
the subject of a National Minimum Wage is in the Exclusive Legislative
List, we have been meeting with the State Governors because 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.

“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.

“However, we anticipate that
after the new minimum wage 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.

“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.

“It
is against this background that I have set up a Technical Committee to
advise Government on how best to fund, 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.” he said

He said that the
inaugurated technical committee will be chaired by an economist and
financial expert, Mr. Bismarck Rewane with other experienced economists
and administrators from the private sector working together with all the
relevant officials of government.

He enumerated the terms of
reference for the committee to include develop, and advise government on
how to successfully bring about a smooth implementation of impending
wage increases and identify new revenue sources, and 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.

Others
are to “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.

“Given the
urgency of this exercise, the Committee is expected to complete its
deliberations and submit its report and recommendations within one month
today.

“It is now my pleasure to formally inaugurate the
Technical Advisory Committee on the Implementation of an Increase in the
National Minimum Wage.”

Others in the committee are former
Chairman of the Federal Inland Revenue Service, Dr Babatunde Fowler,
ex-FIRS boss, Mrs. Ifueko Omoigui-Okauru, Dr Ayo Teriba, Chief Executive
Officer among other and Prof. Akpan Ekpo.

From the public sector
are: Chairman FIRS, Dr Babatunde Fowler, Director General of Budget
Office, Ben Akabueze, who is the secretary of the committee,
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.

The committee has a month to complete and submit its report.

It
also came about 24 hours after the government and organised Labour –
agreed to forward the new National Minimum Wage Bill to the National
Assembly on or before January 23.

The organised labour, had in
December 2018, rejected any attempt by the Federal Government to set up
another committee on the national minimum wage, describing any such plan
as diversionary and delay tactics.

President Buhari, had during
the budget proposal presentation, promised a new minimum wage which he
said will help maintain jobs for the teaming unemployed.

He had
also promised to set up a special committee to look into the current
fiasco concerning the minimum wage and come up with ideas of reducing
debt and yet, increasing the minimum wage.

“We have included the implementation for the National Minimum Wage. I will be sending a Bill to this National Assembly, on this.

“To
avoid a system crisis on the Federal Government and states, it is
important to device ways to ensure that its implementation does not lead
to an increase in the level of borrowing.

“I am accordingly
setting up a high-powered technical committee to advice on ways of
funding an increase in the minimum wage and attendant wage adjustments
without having to resort to additional borrowing.

“The work of
the committee will be the basis of finance bill which will be submitted
to the national assembly alongside the minimum wage bill.” he had stated

The Amal Pepple National Minimum sage Committee submitted its report in November 6 2018.

Source:- Thenationonlineng

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