On Sunday, the Presidency reiterated that the Organised Labour’s demand for a N250,000 minimum wage is unsustainable, stressing that the Federal Government cannot allocate all its resources to meet this request.
This statement followed the Association of Local Governments of Nigeria’s (ALGON) concerns over the proposed N62,000 minimum wage, warning it could strain local councils’ finances.
On May 28, discussions between the Federal Government and Organised Labour stalled after the government and private sector raised their offer to N62,000. However, labour unions rejected this proposal, deeming it insufficient for the average Nigerian worker.
In an interview with The PUNCH, Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, urged the labour unions to consider the broader population’s needs. He argued that the government’s resources should not be exclusively allocated to a workforce constituting less than 10% of the population.
“The government cannot use all its resources to pay workers. Many Nigerians are self-employed or work in the private sector and are not part of Labour,” Onanuga stated. “Labour must reconsider their stance instead of attempting to shut down the system.”
President Tinubu announced that an executive bill on the new national minimum wage would be sent to the National Assembly. Onanuga indicated this might occur after the Sallah break but could not specify a date.
Onanuga also noted that the current N62,000 figure resulted from a committee’s deliberations, including private sector representatives. He emphasized that any decision on the minimum wage must consider the financial capacity of state and local governments.
Attempts to reach labour leaders were unsuccessful, as they were returning from the International Labour Organisation conference in Geneva.
Meanwhile, the Federal Government’s tripartite committee on minimum wage review urged labour unions to reassess their demands. Chairman Bukar Aji highlighted various government incentives, such as a N35,000 wage award for federal workers and numerous financial support programs, totaling billions of naira.
Aji emphasized the need to avoid further job losses, pointing out that many businesses are already struggling. He called on labour unions to consider the N62,000 minimum wage offer, taking into account economic factors and the non-monetary incentives provided by the government.
