The Federal Government has deemed the organized labour’s request for a national minimum wage of N494,000 as economically unfeasible, cautioning that it could destabilize the economy and adversely affect over 200 million Nigerians.
According to The PUNCH, during a press briefing in Abuja, the Minister of Information and National Orientation, Mohammed Idris, highlighted this concerns.
In a statement released by his media aide, Rabiu Ibrahim, on Saturday, Idris underscored that the proposed wage increase would lead to an annual expenditure of N9.5 trillion, a financial strain he described as unsustainable for the nation.
Idris pointed out that the government’s current proposal is a minimum wage of N60,000, a 100 percent increase from the 2019 rate, which has already been accepted by the organized private sector involved in the wage negotiations.
“The Federal Government’s new minimum wage proposal amounts to a 100 per cent increase on the existing minimum wage in 2019. Labour, however, wanted N494,000, which would increase by 1,547 per cent on the existing wage.
“The sum of N494,000 national minimum wage which Labour is seeking would cumulatively amount to the sum N9.5 trillion bill to the Federal Government of Nigeria,” Idris said.
He emphasized the potential economic repercussions, including significant job losses, particularly within the private sector, if the labour demand were to be met.
“Nigerians need to understand that whereas the FG is desirous of ample remuneration for Nigerian workers, what is most critical is that President Bola Ahmed Tinubu will not encourage any action that could lead to massive job loss, especially in the private sector, who may not be able to pay the wage demanded by the organised labour,” Idris stated.
The Minister highlighted that while labor unions were pushing for higher wages for around 1.2 million workers, the government prioritized the welfare of the entire population, focusing on principles of affordability and sustainability.
Idris urged organized labour to return to the negotiating table to agree on more reasonable and realistic wages, reaffirmng that the Tinubu administration’s commitment to workers’ welfare, noting that the current wage award of N35,000 for federal workers would continue until a new national minimum wage is established.
On Friday, the Nigeria Labour Congress announced a nationwide indefinite strike starting at midnight on Sunday, June 2, 2024, due to the federal government’s refusal to raise the proposed minimum wage above N60,000.
NLC President Joe Ajaero announced the strike after negotiations between the government and organized labor failed.
Despite the government’s final offer of N60,000, which included a recent increase from an initial N57,000, labor unions found the proposal inadequate.
During the meeting, labor revised its demand, reducing it by N3,000 from the initial N497,000 proposed last week, setting the new proposal at N494,000.
However, negotiations remained deadlocked as the government maintained its offer of N60,000, leading to the declaration of the nationwide indefinite strike.
