The Federal Government has confirmed that members of the National Youth Service Corps (NYSC) will receive at least N30,000 as monthly allowance due to the signing of the new national minimum wage bill.
President Muhammadu Buhari signed the bill into law last month to increase the national minimum wage from N18,000 to N30,000 after months of negotiations with labour unions and state governments.
The law makes it compulsory for all employers of labour in Nigeria to pay their workers the sum of N30,000, at least, with the exclusion of employers with less than 25 employees.
The signing of the bill had led to speculations about how it would affect corps members who currently earn N19,800 as monthly allowance from the Federal Government.
The speculations have now been put to bed by the Minister of Finance, Zainab Ahmed, who revealed that the government is working out the modalities of the new minimum wage.
Zainab Ahmed, speaking on Thursday, said “We have looked at the report and what we are working on now is how we can finance it. “Apart from the increase of the minimum wage from N18,000 to N30,000, there is also a consequential adjustment that we have to negotiate with the labour unions,” she said.
“The total implication of that would be worked out only after the negotiations and that would involve determining how much increase every other employee above the minimum wage would get.
“It could be a flat amount or a proportion, but the other aspect that is clear is that there would be an increase for the National Youth Service Corps as well because, by the Act, they should earn at least the minimum wage and the NYSC also has to increase to that N30, 000.
“So, because we have not done the negotiation with labour, I cannot give you the details of what we are projecting because it is simply on projections.”
Ahmed also announced that a sum of N649.43bn would be distributed to state governments as the final refund for the Paris Club debt.