The Federal Government has cautioned that the push for an increased national minimum wage by organised Labour could lead to severe economic consequences, including mass layoffs. This warning came from the Minister of Information and National Orientation, Mohammed Idris, in response to the Nigeria Labour Congress’s (NLC) demand for a N250,000 minimum wage.
Idris emphasized that such a substantial wage increase could destabilize the economy, resulting in widespread job losses and harming the overall welfare of Nigerians. Despite President Bola Tinubu’s recent claims of an agreement on a new national minimum wage, labour unions have refuted these statements, insisting that no consensus has been reached.
Prince Adewale Adeyanju, acting President of the NLC, clarified that negotiations ended without an agreement on June 7. Adeyanju is stepping in for NLC President Joe Ajaero, who is attending an International Labour Organisation conference in Geneva, Switzerland.
President Tinubu’s Democracy Day announcement that his administration would submit an executive bill to the National Assembly to formalize the new minimum wage agreements sparked further controversy. The negotiations had involved prolonged discussions, with the unions demanding N250,000, while the Federal Government and the Organised Private Sector (OPS) proposed N62,000. State governors indicated they could not sustain a minimum wage above N60,000.
The labour unions dismissed the government’s and OPS’s offers, labeling them as inadequate. Chris Onyeka, Assistant General Secretary of the NLC, stated that Labour would not accept the N62,000 proposal or the N100,000 suggested by some economists. NLC President Joe Ajaero reiterated that the union is awaiting the President’s consideration of Labour’s proposal.
During the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja, Minister Idris underscored the need for a realistic wage system that prevents mass layoffs while meeting workers’ needs. He reaffirmed the government’s commitment to reassessing the minimum wage but warned against demands that could harm the economy.
“The Federal Government is not opposed to increasing wages for Nigerian workers,” Idris stated. “However, we advocate for a realistic and sustainable wage system that will not undermine the economy, lead to mass retrenchment of workers, and jeopardize the welfare of about 200 million Nigerians.”
Idris also highlighted ongoing efforts to reduce living costs, such as the Presidential Compressed Natural Gas (CNG) programme, which aims to cut transportation expenses by 50%. He called on labour unions to consider holistic relief measures beyond salary adjustments, stressing the significance of initiatives like the CNG programme in enhancing purchasing power.
“It will also come as an effort to reduce the cost of living and to ensure that more money stays in the pockets of Nigerians,” Idris explained. “By replacing or complementing petrol usage with CNG, that programme alone will cut transportation costs by as much as 50%.”
The minister urged religious leaders to help raise public awareness about government initiatives and efforts to improve the living standards of Nigerians.
