The Federal Government has said the sum of N494,000 national minimum wage being demanded by organized labour, which cumulatively amounts to the sum of N9.5 trillion bill, is capable of destabilizing economy and jeopardizing the welfare of over 200 million Nigerians.
Minister of Information and National Orientation, Mohammed Idris stated this at a news conference in Abuja on Saturday, in response to the threat by the organized labor to embark on strike if their demands were not met.
He said the offer of N60,000 minimum wage by the Federal Government, which translates to a 100% increase on the existing minimum wage of 2019, has been accepted by the organized private sector, which is a member of the tripartite committee of the negotiations team.
“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 FG is desirous of ample remuneration for Nigerian workers, what is most critical is that the President will not encourage any action that could lead to massive job loss, in the private sector, who may not be able to pay the wage demanded by the Organised Labour,” he said.
The Minister said even though Labour is keen on the take-home pay of about 1.2 million workers, the Federal Government 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.
He said because of the 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.
For months, the organised labour unions and the Federal Government have been locked in negotiations over a new minimum wage with the former giving an ultimatum of May 31st.
The labour had initially demanded a ₦615,000 minimum wage but reduced it twice, now at ₦494,000. The government and the organised private sector had initially proposed ₦48,000 and ₦54,000 which were also rejected by the labour.
‘We Completely Reject It’ Trade Union Congress President, Festus Osifo said in a TV program recently, during a meeting of the committee on minimum wage on Tuesday, labour rejected the Federal Government’s new minimum wage proposal.
Osifo said the new proposal does not tally with the nation’s economic realities with Nigeria’s inflation rate of 33.69% as of April 2024 based on data from the National Bureau of Statistics (NBS), labour had to “completely reject”.
On the Federal Government’s latest offer of ₦60,000, he said, “So, for us, we completely reject it. We want the government to be serious. Let them come and give breakdown of how a family is going to live with the minimum wage of ₦60,000”.
Speaking during the Workers’ Day Celebration in Abuja, Joe Ajaero, president of NLC, said labour will not guarantee industrial harmony of the country if a new minimum wage is not announced before May 31.
The last meeting held with the Federal government ended in a deadlock, following Labour’s rejection of the new N60,000 minimum wage offer by the government.
This will be the fourth proposal the organized labour have rejected in two months since the discussion on minimum wage began, Labour is currently demanding N494,000 as minimum wage.