Presidency Deems N250,000 Minimum Wage Demands Unsustainable Pushes for N62,000

The Presidency has warned that the N250,000 minimum wage demand by Organised Labour is unsustainable, stressing that the Federal Government cannot allocate all its resources to meet such a demand. This statement came two days after the Association of Local Governments of Nigeria (ALGON) expressed concerns over the proposed N62,000 minimum wage, fearing it could strain local councils' finances.

Talks between the Federal Government and Organised Labour broke down on May 28 after the government and the Organised Private Sector raised their wage offer to N62,000. However, labour unions rejected this proposal, calling it an insult to Nigerian workers' intelligence and stating that workers deserve more.

In an interview with The PUNCH, Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, emphasized that the country's resources cannot be directed solely to benefit a small fraction of the population. He urged the labour unions to be realistic, considering that the majority of Nigerians, including those self-employed or in the private sector, are not represented by these demands.

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Onanuga mentioned that an executive bill on the new national minimum wage would be sent to the National Assembly soon, likely after the Sallah break. He noted that the current N62,000 figure was agreed upon by a committee including private sector representatives, and any changes would need their consensus. Efforts to reach labour leaders were unsuccessful as they were returning from the International Labour Organisation conference in Geneva.

Bukar Aji, chairman of the tripartite committee reviewing the minimum wage, urged labour unions to reassess their demands considering economic factors and government-provided non-monetary incentives. These incentives include a N35,000 wage award for federal workers, various financial supports for states, and initiatives to boost agriculture, manufacturing, and student loans. Aji emphasized that an unmanageable minimum wage could lead to further job losses amid struggling businesses.