The recent announcement of a proposed increase in Nigeria’s minimum wage to N70,000 has sparked discussions on its implications for various sectors. While this upward revision aims to improve the living standards of workers, it raises a crucial question: what about the pensioners?
Pensioners, the backbone of our nation’s development in years past, often find themselves grappling with meager payouts that barely meet the rising cost of living. For these senior citizens, the proposed minimum wage offers a beacon of hope—if it is accompanied by a corresponding adjustment in pensions. Ignoring this demographic would not only be unjust but could also deepen the economic disparities they face.
The harmonization of pensions with the new minimum wage is not just a moral obligation; it is a constitutional and economic necessity. Section 173(3) of the Nigerian Constitution mandates that pensions must be reviewed every five years or alongside any wage review. Unfortunately, this provision has been inconsistently applied, leaving many pensioners in a financial limbo.
At a time Nigerians, are grappling with economic crunches, getting poorer and losing steam every day, the N70,000 minimum wage to say the least is insufficient. The announcement by some state governments for higher wages for their workers. Is timely and commendable. However, some announced by word of mouth,no action yet while others have gone ahead to implement the new wage.
Prominent of such governors is Governor Siminilayi Fubara of Rivers State. AKA. Man of the People.( Simplified)
Fubara is a model for governance. A man with a humble disposition who, was first in the state to give workers a lift in bonuses for the month of December. He is also the first governor in the country to implement a minimum wage of N85,000. .
But, while workers in the civil service are smiling to the bank, the pensioners look on helplessly to a gloomy present and bleak future. This is counterproductive for a government that desires the wellbeing of citizens particularly elders
To give hope to retired workers is to lessen the pressure placed on them by the toxic economy by Harmonizing pension amounts without further delay.
Beyond harmonizing pension amounts, the government must also extend the benefits that active workers enjoy to pensioners—particularly the 13th-month payment. This bonus, often a lifeline for workers during the festive season, is equally vital for pensioners, many of whom rely solely on their pensions to cover essential needs. Denying retirees this benefit while granting it to workers creates an inequitable system that overlooks the contributions of our senior citizens.
Harmonizing pensions, including the 13th-month payment, will have far-reaching benefits. First, it ensures that pensioners are not left behind in the fight against inflation. The rising cost of goods and services affects everyone, regardless of whether they are in active service or retired. Second, it will restore the dignity of our senior citizens, many of whom dedicated decades of their lives to the service of the nation.
However, implementing such adjustments requires careful planning to avoid further strain on the nation’s finances. The federal and state governments must prioritize expanding the tax base and curbing corruption to generate sufficient revenue. Additionally, transitioning to contributory pension schemes for current workers can help ensure the sustainability of future payouts.
Labor unions, civil society organizations, and pensioner advocacy groups must continue to press for the inclusion of retirees in wage discussions. Their voices are crucial in ensuring that the government upholds its constitutional responsibilities.
In conclusion, the new minimum wage presents an opportunity to right historical wrongs and bring pensioners into the fold of economic reforms. As Nigeria moves forward with this policy, equity must remain at the forefront. For States including Rivers State, extending the 13th-month payment to pensioners alongside wage harmonization is not merely a financial consideration—it is a statement of total commitment to fairness and respect for all its citizens. A nation that values its elders is one that paves the way for a more inclusive and prosperous future.
