The Nigerian Government has expressed serious concerns that the proposed N494,000 new minimum wage by organized labour could severely cripple Nigeria’s economy.
Minister of Information and National Orientation, Mohammed Idris, highlighted these concerns during a press briefing in Abuja, addressing the organized labour’s demands and their impending indefinite strike action.
Minister Idris pointed out that implementing the proposed N494,000 minimum wage would place a staggering N9.5 trillion expenditure burden on the government.
He emphasized that while the government is committed to improving workers’ welfare, the proposed figure is economically unsustainable.
The government had already agreed to a significant 100 percent increase in the minimum wage, raising it from N30,000 to N60,000 to better align with the current economic realities.
Idris criticized the organized labour’s 1,547 percent increase proposal, stating that such an exorbitant demand would force the federal government to drastically reduce its workforce of 1.2 million employees, a move that would have devastating implications for the country’s economy.
“The sum of N494,000 national minimum wage which Labour is seeking would cumulatively amount to a N9.5 trillion bill to the Federal Government of Nigeria,” he explained.
He further stressed the importance of balancing fair remuneration with economic stability, noting that President Bola Ahmed Tinubu is focused on avoiding actions that could lead to significant job losses, particularly in the private sector, which might struggle to meet such high wage demands.
“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 organized labour’s call for an indefinite strike, set to commence on Monday, June 3, stems from the government’s failure to implement a new minimum wage and reverse the April 3 electricity tariff hike.
This strike represents a critical moment in the ongoing tension between the government and labour unions over fair wages and economic policy.
This development comes on the heels of President Bola Ahmed Tinubu’s recent signing of the 2024 N28.7 trillion appropriation bill on January 1, which includes a projected revenue of N19.7 trillion and a budget deficit of N10 trillion.
The financial strain posed by the organized labour’s demands adds another layer of complexity to the government’s already challenging fiscal landscape.
In summary, while the Nigerian government acknowledges the necessity of improving workers’ wages, the proposed N494,000 minimum wage by organized labour is seen as an unsustainable burden that could lead to significant economic disruptions and job losses.
The government is striving to find a balance that ensures fair compensation without jeopardizing the nation’s economic stability.
