**ABUJA** – On Tuesday, the National Assembly approved the new N70,000 minimum wage bill and reduced the periodic review interval from five years to three years.
Additionally, lawmakers passed an amendment bill that will allow the appointed Inspector-General of Police to serve until the end of their stipulated term.
President Bola Tinubu had previously submitted the National Minimum Wage Bill to the National Assembly for consideration. In his letter to the Assembly, Tinubu urged swift passage of the bill to facilitate implementation.
The letters were read by Tajudeen Abbas, Speaker of the House of Representatives, and Senate President Godswill Akpabio during Tuesday’s plenary session.
The bill formalizes the recently agreed-upon N70,000 minimum wage between the Federal Government and organized labor.
Last week, Tinubu requested an increase of N6.2 trillion to the 2024 Appropriation Act, with N3.2 trillion allocated for infrastructure projects and N3 trillion for recurrent expenditure.
Atiku Bagudu, Minister of Budget and Economic Planning, defended the president’s request before the House of Representatives Committee on Appropriations on Monday, explaining that the N3 trillion is designated for the new national minimum wage. The proposed N3.2 trillion for infrastructure includes major road and rail projects, such as the Port Harcourt-Maiduguri route, spanning several states.
On June 3, labor unions disrupted the economy over the minimum wage dispute. The proposed legislation provides legal backing for the N70,000 wage approved by the president after weeks of negotiations with labor unions.
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) had threatened a nationwide strike if the Federal Government failed to approve a new wage. The unions cited economic hardship due to subsidy removal and rising costs.
The Federal Government initially offered N62,000 for the minimum wage on June 7, 2024, but the unions demanded N250,000. After further negotiations, the government’s offer of N70,000 was accepted last week.
On Tuesday, the bill swiftly passed through the first and second readings, followed by report consideration and final passage, paving the way for immediate implementation.
The bill replaces the National Minimum Wage Act, No. 8, 2019, which set the minimum wage at N30,000 and required a five-year negotiation period for new rates.
The House of Representatives also passed a bill allowing the Inspector-General of Police to serve the full term specified in their appointment letter, amending Section 18 of the Police Act. The amendment introduces a new subsection (8A) guaranteeing a four-year tenure for IGPs, regardless of the 35-year service limit or age of 60.
The Senate also passed a similar amendment bill, with the bill introduced by Senate Leader Senator Opeyemi Bamidele. The bill was presented for first reading, underwent second and third readings, and was passed after a debate led by Senator Bamidele.
In another development, the National Assembly approved an additional N6.2 trillion for the 2024 Appropriation Act Amendment Bill. This includes N3.2 trillion for capital expenditure and N3 trillion for recurrent expenditure.
Senator Solomon Olamilekan, Chairman of the Senate Committee on Appropriations, presented the report. He noted that the additional expenditure would be financed by a one-time windfall tax on banks’ foreign exchange profits for 2023.
Senate President Godswill Akpabio commended the Committee on Appropriations for their prompt work on the bill.
The House of Representatives also approved a revised budget, increasing the 2024 Appropriation from N28.7 trillion to N35.055 trillion. This budget allocates funds for statutory transfers, debt service, recurrent expenditure, and capital development.
Rep. Abubakar Bichi, who presented the harmonized report, highlighted the budget’s focus on critical infrastructure, calling it the “Budget of Renewed Hope.”
(Independent)