On Wednesday, the Federal Government issued a warning to organised Labour about the potential economic fallout from demanding an excessively high national minimum wage.
Mohammed Idris, the Minister of Information and National Orientation, cautioned that the N250,000 minimum wage sought by labour could destabilize the economy, result in widespread job losses, and affect the well-being of the Nigerian populace.
Contrary to President Bola Tinubu’s announcement during his Democracy Day address, labour unions have denied reaching a consensus on the new national minimum wage.
Prince Adewale Adeyanju, the interim President of the Nigeria Labour Congress, clarified that as of June 7, when negotiations concluded, the Tripartite Committee on the National Minimum Wage had not settled on an agreement. Adeyanju is temporarily filling in for NLC President Joe Ajaero, who is currently at an International Labour Organisation event in Geneva.
President Tinubu’s remarks about submitting a bill to the National Assembly outlining the negotiated minimum wage terms provoked a strong reaction from the unions.
After extensive discussions, the unions maintained their stance on a N250,000 minimum wage, while the Federal Government and the Organised Private Sector proposed N62,000. State governors expressed their inability to support any minimum wage exceeding N60,000.
The labour unions dismissed these propositions, refusing to negotiate what they termed a ‘starvation wage.’ Chris Onyeka, the NLC’s Assistant General Secretary, stated that Labour would reject the N62,000 offer and the N100,000 suggestion put forth by certain individuals and economists.
Meanwhile, NLC President Joe Ajaero indicated that the unionists are awaiting the President’s consideration of Labour’s proposal.
At the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja, Minister Idris underscored the need for a practical wage system that prevents mass layoffs while meeting workers’ needs.
Idris reiterated the government’s commitment to reevaluating the minimum wage but warned against demands that could jeopardize the economy.
He said, “As I have repeatedly said, the Federal Government is not opposed to the increase of wages for Nigerian workers but we keep on advocating for a realistic and sustainable wage system for the workers – a wage system that will not undermine the economy, lead to mass retrenchment of workers and jeopardise the welfare of about 200 million Nigerians.
“We want the labour unions to understand that the relief that Nigerians are expecting, and that they fully deserve, will not come only in the form of an increase in wages.”
Idris pointed out ongoing initiatives aimed at reducing living costs, such as the Presidential Compressed Natural Gas programme, which seeks to halve transportation costs.
While supporting wage hikes, Idris emphasized the need for comprehensive relief measures beyond salary increases, encouraging Labour to acknowledge the impact of initiatives like the CNG programme on improving the purchasing power of citizens.
He appealed to religious leaders to help inform the public about the government’s initiatives and efforts.
