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New Minimum Wage: Crisis Looms as FG, Labour Unions Trade Blames

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By Mathew Dadiya, Abuja

Following the inability of federal government and the organized labour union to agree on the final modality for implementation of the new national minimum wage, there is impending signal that the economy may suffer a setback if the issue is not resolved quick.

President Muhammadu Buhari had in April 2019, signed into law the N30,000 national minimum wage.

But the implementation of law is yet to be effected six months after presidential assent resulting in heated debates and bickering between the government and the labour union.

The labour union has given the government a two-week ultimatum to either meet their demands or face industrial action in which case the economy would suffer.

The bone of contention is not the payment of the N30,000 minimum wage but the inability of both government and the labour team to reach an agreement over the relativity or consequential for the implementation of the new minimum wage.

Labour has warned that government’s delay is an invitation for industrial action adding that workers were already engulfed in fear and agitations whether their accumulated arrears will be paid at the end of the agreement. 

Daily Asset recalls that the federal government had step up from 9.5 percent to 11 percent for grade levels 7 to 14 and 6.5 percent from 5.5 percent for levels 15 to 17. 

But the organised Labour, said, “workers stepped down to 29 from 30 percent for grade levels 7 to 14 and 24 from 25 percent for levels 15 to 17.” He added that the labour negotiating team has also resolved to write to the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) on their advice to consider an industrial action. 

Recalled that at the end of the Joint Public Service Negotiating Council (JNPSNC) meeting which was chaired by the Head of service of the federation, Winifred Oyo-ita, our reporter learnt that both the federal government and the labour teams of the joint public service negotiating council only made minor adjustment to their earlier positions. 

Minister of Labour and Employment, Dr Chris Ngige, has said that the demand of labour union over the implementation of the new minimum wage would cost the Federal Government N580 billion.

Ngige maintained that such adjustment in line with labour union demand was

not sustainable as the government would have to lay off some workers

to be able to meet their demand.

The Minister made government’s position known last Thursday in Abuja when the leadership of United Labour Congress (ULC), paid him a courtesy visit.

He said that the Federal Government was avoiding a situation where it would have to lay off workers, adding that this would add to the burden of the citizenry.

The minister however, begged the labour union to accept the consequential adjustment from levels 7 to 17, adding that the Federal Government had only three

months left to implement the new minimum wage.

He stated that the Federal Government would not tell the labour union

what it could not pay, stating that no workers deserved to be owe

salary.

Ngige disclosed that the Federal Government had so far paid the

arrears of N500 billion to workers including the Academic Staff Union

of Universities (ASUU).

He said that the implementation of the new minimum wage had commenced

from grade level 1 to 6, adding that this had helped those on the

lower rug of the leader in the civil service to move up.

The Federal Government had told the labour union that it could only

pay 9.5 per cent salary raise for employees on Grade Levels 07-14, and

five per cent for those on Grade Levels 15-17.

But the labour union is demanding 30 per cent for officers on Grade

Levels 07-14, and 25 per cent for those on Grade Levels 15-1

Mr Joe Ajaero, the President of UCL, appealed to the minister for

prompt payment of the new minimum wage, stressing that the private

sector must also be compelled to pay the N30, 000.

He said that there was need to review obsolete laws that were not in

tune with present reality, adding that a situation where some private

sectors paid their employees N10,000 and N15,000 was unacceptable.

The federal government has been basking on the international labour law of Collective Bargain Agreement which stipulates that employer can only accept what they can pay, insisting that the 25 percent consequential demand by labour may not be feasible. 

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DBN Signs $61m Credit Deal With AfDB, Unveils Support Initiative Report

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By Tony Obiechina, Abuja

The Development Bank of Nigeria Plc (DBN) has launched DAWN: DBN Action for Women in Nigeria, unveiled its Impact Report and presented MSME Data Assets at the seventh edition of Annual Lecture held in Abuja.

DBN, in a statement on Thursday, said while delivering a welcome address, its Managing Director and Chief Executive Officer, Dr Tony Okpanachi, said the central challenge was no longer reforms themselves but ensuring benefits reach businesses at end of the chain.

He asked how to make sure benefits reach traders in Onitsha, fabricator in Aba, farmer in Kebbi and young founder in Yaba, noting that MSMEs accounted  for about half of Nigeria’s GDP and more than eight in every ten jobs, adding that when reform works for MSMEs it works for most Nigerians.

He explained that reform becomes prosperity only when entrepreneurs can act on it whether through long tenor loans to buy equipment, banks willing to take risk or skills and records needed to grow.

He said working through Participating Financial Institutions DBN provides longer term funding, partial credit guarantees through subsidiary Impact Credit Guarantee Limited and capacity building including Entrepreneurship Training Programme.

He disclosed that as at December 2025 DBN had disbursed a cumulative N1.4 trillion to MSMEs through 84 Participating Financial Institutions creating about 1.6 million jobs nationwide.

Under the new five year strategy, the Bank aims to reach more than two million MSMEs with deliberate targets for women led businesses, youth led businesses and underserved states.

On DAWN, Okpanachi said finance alone had not enabled enough women-led businesses to scale.

He said initiative brings together financing, guarantees and credit support, technical assistance, outcome linked grants and market linkages delivered through banks, microfinance institutions, fintechs, aggregators, cooperatives and direct channels.

Its priority sectors are agriculture and exports, healthcare, arts and creatives, technology and green business.

He said DAWN is about moving gender focused lending beyond intention and turning access into opportunity.

On the sidelines of the lecture DBN and African Development Bank held a signing ceremony of AfDB DBN 61 million United States dollars Gender Line of Credit development that reinforces Bank commitment to women led enterprises.

Okpanachi urged Participating Financial Institutions to extend lending into sectors and states where access to finance has been limited, policymakers and regulators to measure reform by what changes for business at end of chain and MSMEs to formalise, keep good records and use support now available.

The Vice President as Special Guest of Honour was represented by Dr Fred Iklaga Senior Technical Adviser in the Office of Special Adviser to the President on Economy.

Keynote speakers were Chief Executive Officer of MTN Nigeria, Dr Karl Toriola, and Chairman of Nigeria Sovereign Investment Authority, Dr Segun Ogunsanya.

Fireside chat featured Chief Executive Officer of Sterling Bank Abubakar Suleiman, manufacturing and trade entrepreneur Mrs Omoyemi Chukwurah and by video Kola Masha of Babban Gona.

The Secretary to the Government of Federation, represented by Augusta Warren Bekaredebo, said 2026 tax reforms would bring relief to many small businesses expressing optimism that a lot of businesses will be smiling by next year because they will be exempted from tax.

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NLC Threatens Nationwide Action as Talks With FG Collapse

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By Tambaya Julius, Abuja 

The Nigeria Labour Congress (NLC) has threatened possible nationwide industrial action following the failure of talks with the Federal Government over workers’ welfare, petrol prices and other outstanding labour demands.

The warning came after a meeting between the government and organised labour at the Ministry of Labour in Abuja on Thursday, October 22, ended without an agreement.

The congress has given the Federal Government until Tuesday, October 27, to make meaningful progress on the issues, warning that its relevant organs would decide the next line of action if the next meeting fails to produce concrete commitments.

The NLC has also directed its affiliates, state councils and civil society allies to begin mobilising members for possible nationwide action.

In a statement issued after the meeting, the NLC Acting General Secretary, Benson Upah, expressed disappointment over what he described as the government delegation’s lack of preparedness for the negotiations.

According to the congress, organised labour presented its demands in good faith but left the meeting without any concrete commitments from the government.

The demands include a reduction in petrol prices to 2024 levels, renegotiation of the national minimum wage, implementation of agreed tax relief measures and resolution of the terms of settlement involving the Joint Health Sector Unions (JOHESU).

The congress also called for the resolution of issues raised by the Joint Public Service Negotiating Council (JPSNC) over peculiar allowances, wage awards and hazard allowances.

The NLC said the government delegation lacked the necessary authority to engage meaningfully on the issues presented by labour representatives.

“The meeting between the Federal Government and organised labour, convened at the Ministry of Labour in Abuja on 22nd October 2026, has ended without resolution,” the statement said.

It added that the Minister of Labour requested that the meeting be adjourned until October 27 to allow the government to prepare adequately for further discussions.

The preparations, according to the statement, would include bringing relevant ministers and heads of departments and agencies to the negotiating table.

The congress said it remained open to dialogue but would not accept continued delays in addressing workers’ concerns.

“We will report back to our organs, and if no meaningful progress is made on Tuesday, the relevant organs of the NLC will decide the next line of action,” it said.

The labour body urged workers and members of the public to remain calm while the negotiations continue, even as it directed its affiliates and allies to prepare for possible industrial action.

“However, we urge all affiliates of NLC and TUC; all state councils and our civil society allies to be alert and start mobilising for a possible action across the nation while we hope that the tenets of our demands are met by the government,” the statement added.

The October 27 meeting is expected to provide another opportunity for both sides to address the outstanding issues and prevent a possible escalation of the dispute.

However, the NLC’s decision to begin mobilisation suggests that tensions could rise if the next round of talks fails to produce meaningful progress.

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Election Campaigns: FRSC Bars Officers from Politicians’ Escort

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The Federal Road Safety Corps (FRSC) has barred its personnel from escorting politicians during campaigns for the 2027 general elections.

Zonal Commanding Officer, RS6, ACM Abimbola Owolabi, gave the directive during her maiden visit to the Cross River Command in Calabar on Wednesday.

Owolabi said patrol vehicles and sirens must not be used for political activities or private engagements, including weddings and funeral processions.

She directed officers deployed to campaign venues to focus exclusively on traffic management to prevent congestion and road crashes.

The zonal head warned personnel against leading political convoys or providing escorts for politicians, stressing that official vehicles must not be used for unauthorised purposes.

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