President Olusegun Obasanjo on Monday announced a massive increase in the Nigerian minimum wage to bring levels into line with economic reality, after the level had remained unchanged since 1981.
The new monthly minimum wage will 5 500 naira (about R370) compared to the previous legal minimum of only 250 naira (about R17)
Public sectors workers will receive a monthly minimum of 7 500 naira as against their current minimum of 3 500 naira, which was updated more recently in September 1998.
"The bill for the minimum wage of 5 500 naira will be presented to the National Assembly soon," Obasanjo said at a May Day rally in Lagos on Monday.
He said the new pay level would take effect from today and urged private sector workers to commence negotiations on implementing the new monthly wage with their employers.
The president said the new minimum is a benchmark for negotiation, adding that it will be illegal for any employer to pay less when the bill is passed into law.
Obasanjo also assured thousands of workers at the rally that the pay will be reviewed annually.
"We have agreed with the Nigeria Labour Congress (NLC) that there will be 25 percent rise next year and 15 percent rise in the year 2002," he said.
He said such increases will however depend on the state of the Nigerian economy.
"The annual reviews will depend on the performance of the economy and the ability to pay," he cautioned.
"The economy has to perform. We have to make it to perform," he said.
Obasanjo said Nigeria's 36 states are free to negotiate with their workers, using the 5 500 naira monthly minimum as the baseline.
He also urged Nigerian workers to justify the pay rise through higher productivity, loyalty and dedication.
"I must say that these figures are justifiable if they are marked by greater productivity," he said.
NLC president Adams Oshiomhole assured Obasanjo of the support of Nigerian workers in his fight against corruption.
"Corruption is a cankerworm that has destroyed our national lives. We must all join hands to fight it," he said.
Talks on a new monthly minimum began after Obasanjo set up a pay review committee on April 11.
The committee which had Obasanjo's chief economic adviser Philip Asiodu as chairman also includes the NLC president.
The NLC demanded 20 000 naira a month, which the government said it could not afford.
Since coming to power last May, the president has promised to improve the welfare of Nigerian workers by paying "a living wage." - Sapa-AFP