The Federal Government has dismissed the organized labour’s demand for a national minimum wage of N494,000, labelling it as unsustainable and potentially destabilizing for the Nigerian economy.
Minister of Information and National Orientation, Mohammed Idris, addressed the issue at a news conference in Abuja, highlighting the economic repercussions of such a demand.
Idris revealed that the proposed minimum wage would result in an annual expenditure of N9.5 trillion, a figure he warned could undermine the welfare of over 200 million Nigerians. He emphasized the government’s commitment to finding a balanced solution that would not jeopardize the private sector or lead to significant job losses.
“The Federal Government’s New Minimum Wage proposal amounts to a 100% increase on the existing minimum wage of 2019. Labour, however, wanted N494,000, which would increase by 1,547% on the existing wage,” Idris stated.
He further noted that while the private sector, part of the tripartite negotiation committee, has accepted the government’s offer of N60,000 as the new minimum wage, labour remains firm on its significantly higher demand.
“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 explained.
The minister called on the organized labour to return to the negotiation table and consider more realistic and sustainable wage demands. He assured that the Tinubu administration remains committed to the welfare of workers, noting that the current wage award of N35,000 for federal workers will continue until a new national minimum wage is finalized.
Rabiu Ibrahim, the Special Assistant (Media) to the Minister of Information and National Orientation, reiterated the government’s stance, stressing the need for affordability and sustainability in wage policies to ensure the overall health of the nation’s economy.
The government’s call for renewed negotiations comes amid threats of industrial action from labour unions, highlighting the ongoing tension between economic constraints and workers’ demands in Nigeria.