The Federal Government has raised concerns about the looming threat of mass layoffs as organized Labour disowns the purported agreement on a new national minimum wage. The Minister of Information and National Orientation, Mohammed Idris, cautioned Labour against insisting on an unfeasible N250,000 minimum wage, emphasizing its potential adverse effects on the economy and the welfare of Nigerians.
Addressing the issue, Minister Idris stated, “The Federal Government is not opposed to increasing wages for Nigerian workers, but we advocate for a realistic and sustainable wage system that avoids mass layoffs and safeguards the welfare of all Nigerians.”
The dispute stems from the recent Democracy Day broadcast by President Bola Tinubu, where he announced plans to submit an executive bill to codify the purported agreements reached in the minimum wage negotiations. However, Labour unions swiftly refuted these claims, asserting that no agreement had been reached as of the last negotiation session on June 7.
Prince Adewale Adeyanju, the Acting President of the Nigeria Labour Congress, clarified the stance, stating, “As negotiations concluded on June 7, there was no agreement reached by the Tripartite Committee on the National Minimum Wage.”
The prolonged negotiations saw Labour unions pushing for a N250,000 minimum wage, while the Federal Government and the Organized Private Sector offered N62,000. However, state governors expressed their inability to sustain any wage higher than N60,000.
In response to the offers, Labour deemed them inadequate, refusing to negotiate what they termed as a ‘starvation wage.’ Chris Onyeka, Assistant General Secretary of the NLC, reiterated Labour’s rejection of the N62,000 offer and dismissed the proposed N100,000, labeling them as insufficient.
Minister Idris emphasized the importance of holistic measures beyond wage adjustments to alleviate the cost of living. He highlighted initiatives like the Presidential Compressed Natural Gas program, aimed at reducing transportation costs by 50%.
“We advocate for measures like the Presidential CNG initiative to reduce transportation costs and ensure more money stays in the pockets of Nigerians,” Minister Idris emphasized.
The minister also called upon religious leaders to assist in raising awareness about government initiatives and ongoing efforts. He acknowledged the influential platforms of religious leaders in disseminating vital information to the public.
Archbishop Leonard Kawas, the National President of the Charismatic Bishop Conference, reiterated the organization’s support for the government’s agenda, emphasizing collaborative efforts to achieve national aspirations.
In response to President Tinubu’s broadcast, Labour leaders expressed disagreement, asserting that no agreement had been reached on the national minimum wage. They maintained their demand for a N250,000 minimum wage, considering the government’s offer of N62,000 as inadequate.
Adeyanju criticized the alleged intimidation of Labour leaders during negotiations, urging the President to demonstrate his commitment to Nigerian workers and the masses.
Additionally, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) disputed the claims of a consensus on the national minimum wage. NACCIMA President, Dele Oye, stressed that negotiations were ongoing, cautioning against premature statements that could jeopardize the process.
The tripartite committee, inaugurated in January, was tasked with recommending a new national minimum wage. However, the inability to reach a consensus brought about the indefinite strike on 3 June.