The Federal Government warned organised Labour on Wednesday to consider the larger economic ramifications of their quest for an unrealistically high national minimum wage. The Minister of Information and National Orientation, Mohammed Idris, who issued the reprimand, warned that the N250,000 minimum salary demanded by labour could damage the economy, lead to mass layoffs, and imperil Nigerians’ wellbeing.
However, labour unions denied President Bola Tinubu’s claims during his Democracy Day speech on Wednesday that a deal had been struck on the new national minimum wage. Prince Adewale Adeyanju, Acting President of the Nigeria Labour Congress, stated that as of the end of negotiations on June 7, the Tripartite Committee on the National Minimum Wage had not reached an agreement.
Adeyanju is speaking on behalf of NLC President Joe Ajaero, who is attending an International Labour Organisation conference in Geneva, Switzerland.
Tinubu raised the ire of unions when he stated that his government would soon file an executive bill to the National Assembly to codify the agreements achieved during minimum wage discussions between Labour, the private sector, the states, and the Federal Government.
The parties had been in talks for weeks, with the unions demanding a minimum wage of N250,000 and the Federal Government and Organised Private Sector offering N62,000.
However, the state governors stated that they would be unable to support a minimum salary higher than N60,000.The labour unions rejected the Federal Government’s and the OPS’s offers, saying they would not negotiate what they called a ‘starvation pay.’ N62,000 is not acceptable.
The NLC’s Assistant General Secretary, Chris Onyeka, stated that Labour will not accept the current offer of N62,000 or the N100,000 suggestion made by some persons and economists. This came as the NLC President, Joe Ajaero, stated that unions were waiting for the President to consider Labour’s proposal.
Speaking at the start of the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja on Wednesday, the information minister highlighted the importance of a reasonable pay structure that protects against mass layoffs while meeting workers’ demands. Idris reiterated the government’s commitment to reassessing the minimum wage while cautioning against demands that could destabilise the economy.
What they’re saying
He said, “As I have repeatedly stated, the Federal Government is not opposed to wage increases for Nigerian workers; however, we continue to advocate for a realistic and sustainable wage system for workers – a wage system that will not undermine the economy, lead to mass layoffs, or jeopardise the welfare of approximately 200 million Nigerians.”We want the labour unions to know that salary increases won’t be the only way that Nigerians would receive the relief they so well deserve.”
Why this matters
He noted ongoing efforts to reduce the cost of living, mentioning programmes such as the Presidential Compressed Natural Gas project, which aims to cut transportation costs by half.
While arguing for wage rises, Idris emphasised the importance of comprehensive relief measures beyond salary adjustments, encouraging Labour to acknowledge the relevance of projects such as the CNG initiative in increasing citizens’ purchasing power. It will also be an effort to lower living costs and keep more money in Nigerians’ pockets and this is where projects like the Presidential CNG Initiative comes in.