The Nigerian government has raised concerns that the new minimum wage proposal of N494,000, put forward by organized labour, could severely impact the country’s economy. Minister of Information and National Orientation, Mohammed Idris, addressed this issue during a press briefing in Abuja. He responded to the demands of organized labour and their plan for an indefinite strike.
Idris explained that the proposed N494,000 minimum wage would result in an unsustainable expenditure burden of N9.5 trillion for the government. He noted that the government had already agreed to double the current minimum wage from N30,000 to N60,000, aligning with the prevailing economic conditions.
The minister criticized the 1,547 percent increase in the proposed new minimum wage, warning that such a demand would necessitate a reduction in the federal workforce of 1.2 million employees, which would be detrimental to the country’s economy.
Idris elaborated, “The N494,000 national minimum wage sought by Labour would result in an N9.5 trillion expenditure for the Federal Government of Nigeria. While the government is committed to ensuring fair compensation for workers, President Bola Ahmed Tinubu will not support measures that could lead to significant job losses, especially in the private sector, which may struggle to meet the wage demands.”
The organized labour has announced plans to begin an indefinite strike on Monday, June 3, in response to the government’s failure to implement a new minimum wage and reverse the April 3 electricity tariff hike.
This comes after President Bola Ahmed Tinubu signed the 2024 N28.7 trillion appropriation bill on January 1, which includes a projected revenue of N19.7 trillion and a budget deficit of N10 trillion.
