Labours’ N494,000 Minimum Wage Demand Unsustainable – FG Insists
…Says, it amounts to N9.5 trillion yearly
The Federal Government on Saturday, June 1, 2024, declared that the N494,000 national minimum wage being demanded by the organized labour is unsustainable as it is capable of destabilizing the economy.
Minister of Information and National Orientation, Mohammed Idris, who stated the position of the Federal Government at a news conference in Abuja, said that the N494,000 national minimum wage would cumulatively amount to N9.5 trillion bill yearly which can jeopardize the welfare of over 200 million Nigerians.
He explained that even though Labour is keen on the take-home pay of about 1.2 million workers, the Federal Government on the other hand is concerned with the welfare of over 200 million Nigerians based on its Guiding Principle of Affordability, Sustainability, and the overall health of the nation’s economy.
Idris, who stated these in response to the threat by the organized labour to embark on indefinite strike if their demands were not met, explained that the offer of N60,000 minimum wage by the Federal Government, which translates to a 100% increase on the existing minimum wage of 2019, was accepted by the organized private sector, which is a member of the tripartite committee of the negotiations team.
According to Idris; “The Federal Government’s New Minimum Wage proposal amounts to a 100% increase on the existing minimum wage 2019. Labour, however, wanted N494,000, which would increase by 1,547% on the existing wage.
“The sum of N494,000 national minimum wage which Labour is seeking would cumulatively amount to the sum N9.5 trillion bill to the Federal Government of Nigeria.
“Nigerians need to understand that whereas the Federal Government 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,” he said.
Idris appealed to the Organised Labour to return to the negotiating table and embrace reasonable and realistic wages for their members, adding that owing to the avowed commitment of the Tinubu administration to the welfare of workers, the wage award of 35,000 for Federal workers would continue until a new national minimum wage is introduced.