The Federal Government on Wednesday urged organized labour to consider the broader economic implications of its demand for a higher national minimum wage, warning that unrealistic increases could lead to mass layoffs and economic instability.
Minister of Information and National Orientation, Mohammed Idris, cautioned that the N250,000 minimum wage demanded by labour could undermine the economy, potentially leading to widespread job losses and harming the welfare of Nigerians.
Despite President Bola Tinubu’s claim during his Democracy Day address that an agreement had been reached on the new minimum wage, labour unions refuted this assertion. Acting President of the Nigeria Labour Congress (NLC), Prince Adewale Adeyanju, clarified that no agreement had been finalized by the Tripartite Committee on the National Minimum Wage as of June 7.
Tinubu’s statement that his administration would soon submit an executive bill to the National Assembly to formalize the new minimum wage agreement drew criticism from the unions. They insisted that while labour had proposed a minimum wage of N250,000, the Federal Government and Organized Private Sector offered only N62,000, and state governors indicated they could not sustain a wage higher than N60,000.
The NLC, represented by Adeyanju, rejected the government’s offer, describing it as insufficient. “Our demand remains N250,000, and we have not been given any compelling reasons to change this position,” he stated. Adeyanju suggested that the President might have been misled into believing an agreement had been reached.
At an event in Abuja, the information minister emphasized the need for a realistic wage system to prevent mass retrenchment and safeguard the economy. Idris highlighted ongoing efforts to reduce the cost of living, such as the Presidential Compressed Natural Gas (CNG) program aimed at cutting transportation costs by 50%.
Idris called on religious leaders to help raise public awareness about government initiatives and the broader context of economic reforms. He stressed the importance of holistic relief measures beyond wage increases to enhance citizens’ purchasing power.
In response, Archbishop Leonard Kawas, National President of the Charismatic Bishop Conference, reaffirmed support for Tinubu’s administration, emphasizing a commitment to collaborative efforts for national development.
The labour unions’ rejection of the President’s claims underscores a significant disagreement over the national minimum wage. The NLC emphasized that no agreement had been reached and reiterated their demand for a fair and livable wage for Nigerian workers.
The Nigeria Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) also commented, noting that no consensus had been reached on the national minimum wage. NACCIMA President Dele Oye, a member of the tripartite committee, called for continued negotiations to resolve outstanding issues.
As negotiations continue, the labour unions remain firm in their demand for a substantial increase, asserting that the current proposals from the government and private sector are inadequate to meet the needs of Nigerian workers.
