On Sunday evening, the Presidency warned that the organized Labour's demand for a substantial increase in the minimum wage could have severe and far-reaching consequences for the Nigerian economy.
During an appearance on TVC’s “Politics on Sunday with Femi Akande,” Presidential Media Adviser Ajuri Ngelale emphasized that while President Bola Tinubu is dedicated to improving the welfare of Nigerians, the country’s current economic conditions cannot support the new wage demands from Labour.
The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) had recently urged their members to embark on an indefinite nationwide strike starting Monday, due to the Tripartite Committee on Minimum Wage's failure to reach an agreement on a new minimum wage.
The 37-member minimum wage committee, chaired by Bukar Goni Aji, includes representatives from the government, organized private sector (OPS), and organized Labour.
As of last week, while the government and OPS had raised their offer to N57,000, Labour reduced its initial demand from N615,000 to N497,000, leading to further disagreements in negotiations.
Ngelale explained that if Labour's demand were met, it would impact not only the federal civil service but the entire economy, including small businesses and the informal sector. He warned that a 20-fold increase in wages could result in massive job losses, business closures, and unsustainable price hikes for goods and services.
He urged Labour to consider the practical implications of their demands, which could worsen the struggles of Nigerian citizens by increasing school fees and prices of food and other commodities.
Ngelale said, “President Bola Tinubu would love to see a minimum wage of N1 million per month for every Nigerian if it were possible. However, the economic realities do not support the demands of organized Labour. This is not just about the federal civil service; it’s about a new national minimum wage for every Nigerian, including those in the informal economy.”
He added, “Increasing the minimum wage to over N500,000 per month would severely impact small businesses, forcing many to close and leading to job losses. It would also result in significantly higher costs for goods and services, making life even more challenging for ordinary Nigerians.”
Ngelale noted that President Tinubu is a pragmatic and empathetic leader who understands the challenges faced by Nigerians. He will strive to improve the situation for Nigerian families without causing mass retrenchment or agreeing to unsustainable demands from organized Labour.
He concluded, “President Tinubu is committed to doing what is right for all Nigerians, but he will not allow Labour to push the government into making unachievable and unsustainable decisions.”
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