Workers Exempted from the New N70,000 National Minimum Wage

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Workers Exempted from the New N70,000 National Minimum Wage - The Tripartite Committee on the New National Minimum Wage has recommended several categories of workers and businesses that will be exempted from the new N70,000 minimum wage. This decision was made after careful consideration, consultation, and survey, including public hearings, to address the concerns raised and ensure a fair and reasonable implementation of the new minimum wage. One key change is that the exemption threshold has been lowered from 25 employees to just 10 employees. The committee argued that many organizations with supposedly slim workforces earn multi-billion naira in annual revenue and yet do not adequately compensate their junior staff. They also noted that the previous 25-employee threshold was unfair and unrealistic. Instead of basing exemptions solely on the number of employees, the committee recommended that it should be determined by the organization's revenue or net income, either quarterly or annually. This approach is aimed at ensuring that even small businesses with fewer than 10 employees but substantial revenue are not exempt from the minimum wage. To further address the challenges in the informal sector, the committee proposed the introduction of hourly, daily, and weekly minimum wages, in addition to the prevalent monthly pay structure. This is expected to cater for part-time and piece-rate employees who may not fit the traditional monthly wage pattern. The committee also recommended greater flexibility, allowing organizations to apply for exemptions based on factors such as startup status and revenue size. This is intended to encourage entrepreneurship and support the growth of small businesses. Overall, the committee's recommendations seek to balance the need to provide a decent minimum wage for workers while also considering the unique challenges faced by small businesses and the informal sector.

Unlock the Future of GIS in West Africa - The ESRI User Conference is coming to Abuja, Nigeria on September 10-11, 2024, uniting professionals, academics, and industry leaders to explore the transformative power of Geographic Information Systems (GIS) in tackling regional challenges. Attendees will witness cutting-edge mapping technologies from ESRI, learn from renowned speakers, and foster a strong GIS community. With advancements in geospatial technology, including high-resolution satellite imagery, GPS-enabled smartphones, and open-source software like QGIS, this conference positions West Africa to leverage the power of GIS and build a brighter future. By showcasing applications across sectors and encouraging collaboration, the event aims to make GIS more accessible and impactful than ever. Read more

Don't miss this extraordinary opportunity to be part of the region's geospatial revolution. Register now: https://africabusinessconvention.com/event/esri-user-conference-west-africa-2024/ 

Naira pressure: Banks' FX Borrowing from CBN Fuels the Fire - It seems the root of the problem lies in the actions of our very own banks. According to a leading industry expert, banks have heavily borrowed from the Central Bank of Nigeria (CBN) to acquire foreign exchange (FX). This practice, in turn, has exacerbated the pressure on the Naira and stoked the flames of inflation. To curb this concerning trend, the CBN has made a strategic move – adjusting the asymmetric corridor around the Monetary Policy Rate (MPR). The goal is to make borrowing from the central bank a more expensive proposition, effectively discouraging banks from this FX-fueled spending spree. Interestingly, the CBN's aggressive interest rate hikes over the past three years have already had a significant impact on liquidity in the market. The industry expert believes this relationship between interest rates and inflation could lead to a more favourable outcome with the latest adjustments. Analysts anticipate that Nigerian banks will continue to benefit from the high-interest rate environment, with widened net interest spreads as a result of repriced loans. However, this may also prompt a shift in investor sentiment, as they seek refuge in the more lucrative fixed-income securities.

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