By Janet Bassey (Governance Reporter)
Less than 24 hours to the take-off of the planned nationwide strike on Monday by the organised Labour, the federal government has said that the N494,000 national minimum wage demand was economically unsustainable.
This position was made known by the Minister of Information and National Orientation, Alhaji Mohammed Idris. He warned, in a statement at the weekend by his media adviser, Rabiu Ibrahim, that it could destabilise the nation's economy and negatively impact over 200 million Nigerians.
The minister pointed out that the proposed minimum wage would result in an annual expenditure of N9.5 trillion, a burden he described as unrealistic for the nation’s finances. He said government’s current offer is a N60,000 minimum wage, representing a 100 per cent increase from the 2019 rate, which has been accepted by the organised private sector involved in the wage negotiations.
Idris said: “The Federal Government’s new minimum wage proposal amounts to a 100 per cent increase on the existing minimum wage in 2019. Labour, however, wanted N494,000, which would increase by 1,547 per cent 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,” Idris said.
The minister also pointed out that the potential economic fallout, including massive job losses, particularly in the private sector, if the labour demand was met.
“Nigerians need to understand that whereas the FG is desirous of ample remuneration for Nigerian workers, what is most critical is that President Bola Ahmed Tinubu will not encourage any action that could lead to massive job loss, especially in the private sector, who may not be able to pay the wage demanded by the organised labour,” Idris stated.
He that while labour was advocating for higher wages for approximately 1.2 million workers, the government’s priority was the welfare of the entire population, guided by principles of affordability and sustainability. The minister therefore enjoined organised labour to return to the negotiating table to agree on more reasonable and realistic wages.
Idris restated commitment of the Tinubu administration’s to workers’ welfare, maintaining that the current wage award of N35,000 for federal workers will continue until a new national minimum wage is established.
The Labour unions had on Friday declared a nationwide indefinite strike starting at midnight on Sunday, June 2, 2024, due to the federal government’s refusal to increase the proposed minimum wage above N60,000. NLC President, Comrade Joe Ajaero, announced the strike following failed negotiations between the government and organized labour.
The government’s offer of N60,000, which included a recent increase from an initial N57,000 did not impress Labour as the unions found the proposal inadequate.
Labour at a meeting, revised its demand and reduced it by N3,000 from the initial N497,000 proposed last week, setting the new proposal at N494,000. But despite this concession, the negotiations remained deadlocked as the government maintained its offer of N60,000, leading to the declaration of a nationwide indefinite strike.
However, the leadership of the NLC and the TUC have vowed that the planned strike action must commence after midnight of Sunday (early Monday morning), as according to the union, the federal government was not ready to alleviate the economic hardship it allegedly unleashed on the entire citizens of the country one year after it announced the fuel subsidy withdrawal. NNL.
