The Director-General of the Manufacturing Association of Nigeria (MAN), Mr. Ajayi Kadri, confirmed that the organized private sector has agreed with the federal government on setting the new minimum wage at N60,000. Kadri made this announcement during an interview with Channels TV on Saturday in Abuja.
Kadri explained that the ongoing negotiations between the government, private sector, and labour unions focus on establishing a minimum wage, not a living wage. He highlighted the economic challenges that make it difficult to meet the labour unions’ higher demands.
“To start with, this is a very difficult time for anyone to negotiate minimum wage. From the perspective of government, labour, and the organized private sector, we operate in an environment where there is general acceptance of the fact that the macroeconomics are not right, even the global economy is experiencing a lot of shakeups and the aftermath of necessary government reforms,” Kadri said.
Kadri emphasized that both the government and the private sector had agreed to offer N60,000 as the minimum wage.
He noted, “Incidentally, the organized private sector and government have offered N60,000 as the minimum wage, and I think it is very important for us to understand that what we are talking about is the minimum wage. That is the amount we will pay the least workers in the country. It is the minimum wage we are negotiating, not a living wage.”
Kadri also pointed out the significant constraints faced by both the government and private businesses, which make it challenging to meet the labour unions’ demand for a N419,000 living wage. He cited economic difficulties and inflation as major hurdles.
“The private sector is constrained by microeconomic, infrastructure, and security challenges. Labour, on its part, is under intense pressure from its constituencies to ask for a higher wage because inflation has hit the roof and the operating environment is tough,” Kadri said.
Throughout the negotiation process, Kadri maintained that this is not the optimal time to negotiate a new minimum wage. Instead, he called for a collaborative effort to strengthen the economy.
“This is the time for us to agree, the crew behind the government, and grow the economy such that we will bake a bigger cake and then we’ll be able to share,” he stated.
The confirmation of the N60,000 minimum wage agreement marks a significant step in the ongoing discussions between the federal government, private sector, and labour unions, aiming to address the economic challenges facing workers and businesses alike.