Federal Government Warns Against Unrealistic Minimum Wage Demands Threatens Mass Sacking

The Federal Government has urged organized Labour to consider the broader economic implications of their demand for a N250,000 minimum wage. Minister of Information and National Orientation, Mohammed Idris, warned that such a high wage could harm the economy, lead to mass retrenchments, and jeopardize the welfare of Nigerians. This comes amid labor unions refuting President Bola Tinubu’s claims of an agreement on the new minimum wage during his Democracy Day broadcast.

Acting NLC President Prince Adewale Adeyanju denied that any agreement was reached by the Tripartite Committee on the National Minimum Wage as of June 7. He stated that while prolonged talks have occurred, with Labour demanding N250,000 and the Federal Government and Organised Private Sector offering N62,000, no consensus was achieved. Adeyanju criticized the President’s announcement of an imminent executive bill codifying supposed agreements, suggesting the President may have been misled by his advisers.

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During a speech at the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja, Idris emphasized the need for a sustainable wage system that avoids economic disruption and mass job losses. He advocated for a balanced approach that includes holistic relief measures beyond salary increases, such as the Presidential Compressed Natural Gas (CNG) program aimed at reducing transportation costs by 50%. Idris called on religious leaders to help raise public awareness about government initiatives to alleviate living costs and support economic opportunities.

The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) echoed the sentiment, noting that no consensus had been reached on the minimum wage. NACCIMA President Dele Oye, part of the 37-member tripartite committee, criticized the release of contradictory statements during ongoing negotiations. Meanwhile, the Nigeria Labour Congress and Trade Union Congress remain firm on their demand for a N250,000 minimum wage, rejecting lower offers as inadequate and stressing their commitment to achieving a living wage for Nigerian workers.