FG Declares Labour’s N494K Minimum Wage Demand of N9.5trn/yr Unsustainable

The organized private sector has agreed to the Federal Government’s proposed N60,000 minimum wage, representing a 100% increase from the 2019 minimum wage.

Minister of Information and National Orientation, Mohammed Idris, expressed concerns about the N494,000 national minimum wage demanded by organized labour, which totals N9.5 trillion annually. Idris warned that this demand could destabilize the economy and negatively impact over 200 million Nigerians.

Speaking at a press conference in Abuja, Idris firmly responded to organized labour’s threat to go on strike if their demands for a higher minimum wage were not met. He clarified that the Federal Government’s proposal of a N60,000 minimum wage has been accepted by the organized private sector, a key player in the tripartite committee involved in the negotiations.

“The Federal Government’s new minimum wage proposal amounts to a 100% increase on the existing 2019 minimum wage. Labour, however, wanted N494,000, which would represent a 1,547% increase on the existing wage. The sum of N494,000 national minimum wage, which labour is seeking, would cumulatively amount to a N9.5 trillion bill for the Federal Government of Nigeria,” he said.

Idris emphasised that while the Federal Government desires ample remuneration for Nigerian workers, it is crucial that President Bola Ahmed Tinubu will not support any action that could lead to massive job losses, particularly in the private sector, which may not be able to afford the wage demanded by organised labour.

The Minister highlighted that while Labour is focused on the take-home pay of approximately 1.2 million workers, the Federal Government prioritises the welfare of over 200 million Nigerians, guided by principles of affordability, sustainability, and the overall health of the nation’s economy.

Idris urged organised labour to return to negotiations and accept reasonable and realistic wages for their members. He also noted that, due to the Tinubu administration’s commitment to workers’ welfare, the N35,000 wage award for Federal workers would remain in effect until a new national minimum wage is established.