National Economic Council sets up Ad-HOC Committee to review Salaries/Wages to alleviate the impact of Fuel Subsidy removal

The National Economic Council (NEC) after its inauguration by President Bola Tinubu, has set up an ad-hoc committee to come up with an appropriate road map on salaries/wages which will alleviate the impact of the removal of fuel subsidy on workers taking into cognizance the financial status of the States of the Federation.

The NEC which is chaired by the Vice President, Sen. Kashim Shettima and has as its members the 36 State Governors and CBN Governor, held its inaugural meeting at the Council Chambers of the Presidential Villa, Abuja.

In his welcome remarks, the Vice President urged members to “strive to build a globally competitive, strong and diversified economy that is driven by industrialization, education, agricultural transformation, infrastructural development and human capital development.” Vice President Shettima solicited their “cooperation and commitment in utilizing the Council to resolve our national matters and advance our economy towards prosperity.”

Below are highlights of the deliberations and resolutions reached,

National Salaries, Income and Wages Commission (NSIWC) Presented by the Chairman, Mr. Ekpo Nta

Council was called to note that in line with NSIWC ACT, the Commission highlighted possible scenarios that will alleviate the impact of the removal of fuel subsidy on workers. Accordingly the Chairman of NSIWC has come up with the following recommendation;

I. NSIWC recommend that Federal Government should be guided by the processes describe in scenario 1 review of the National Minimum wage and note the cost implications yet to be confirmed by the Budget Office and Office of the Auditor General for the Federation (OAGF). Its implication is long term as it will involve rigorous negotiation by all stake holders but it can be concluded on or before April 2024.

II. NSIWC recommends that senerio 2 cost – of – living adjustment allowance at the estimated cost of N702,919,008,000. Petrol allowance at an estimated cost ranging from 23.5billion to 45billion per month offers and opportunity for immediate implementation of a substantial financial palliative plus 25/35% increases already recommended for implementation

III. Any agency especially self funded ones already implementing COLAA or has had a significant wage review recently will need clearance from NSIWC in terms of any further benefits under scenario 1 and 2. e.t.c.

Recommendation

NSIWC is of the view that the above scenarios and recommendations if approved will go along way in alleviating the effect of removal of fuel subsidy and also ensure industrial harmony especially in the public sector.

Council Resolution

After careful deliberations, Council set up an Ad-hoc Committee to look into the modalities as to how to alleviate the impact of the removal of fuel subsidy on workers.

Terms of Reference

Committee is to come up with an appropriate road map taking into cognizance the financial status of the States of the Federation.

Composition of the Committee

Chairman
Governor of Kebbi State.

Members
Governor of Anambra(south East)
Governor of Benue (North Central)
Governor of Kaduna(*North West)
Governor of Bauchi(North East)
Governor of Cross River (South South )
Governor of Oyo (South West)
Representative of Budget Office of the Federation
Representative of Central Bank of Nigeria
Representative of Office Accountant General of the Federation
Representative of NNPCL
Rep of Organised Labour (TUC and NLC)
Rukayyat El-Rufai

Membership of the Committee is to submit its report to Council in two weeks.

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