Federal Government Warns Against Proposed N494,000 Minimum Wage Increase

The Federal Government has raised alarms over the organized labour’s demand for a national minimum wage of N494,000. According to the Minister of Information and National Orientation, Mohammed Idris, such a hike would result in a staggering yearly expenditure of N9.5 trillion. Idris, speaking at a news conference in Abuja, warned that meeting this demand could destabilize the economy and jeopardize the welfare of over 200 million Nigerians.

Highlighting the magnitude of the requested increase, Idris explained that the proposed N494,000 wage represents a 1,547% hike from the current minimum wage, which was last set in 2019. He stressed that the Federal Government’s own proposal of N60,000, a 100% increase on the current rate, had already been accepted by the organized private sector, a key member of the tripartite negotiation committee. “The Federal Government’s New Minimum Wage proposal amounts to a 100% increase on the existing minimum wage of 2019,” Idris stated, underscoring the government’s commitment to enhancing workers’ pay within sustainable limits.

Economic Sustainability and Workforce Welfare

Minister Idris emphasized the government’s focus on balancing fair remuneration for workers with the broader economic implications. The labour’s demand, he argued, could lead to significant job losses, particularly in the private sector, which may struggle to meet such high wage requirements. “Nigerians need to understand that whereas the Federal government 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,” Idris asserted.

The Minister reiterated that the Federal Government is concerned not only with the welfare of the approximately 1.2 million federal workers but with the overall well-being of the entire Nigerian population. The Federal government’s guiding principles, he noted, are rooted in affordability, sustainability, and the health of the national economy. Idris called on organized labour to reconsider their stance and return to the negotiating table to work towards a more reasonable and realistic wage structure.

Federal Government’s Commitment to Workers’ Welfare

Despite the tension surrounding the wage negotiations, the Federal Government has demonstrated its commitment to the welfare of workers. Idris pointed out that the Tinubu administration had already implemented a wage award of N35,000 for federal workers, a measure intended to provide immediate relief until a new national minimum wage is established. “Because of the commitment of the Federal government to the welfare of workers, the wage award of N35,000 for Federal workers would continue until a new national minimum wage is introduced,” he affirmed.

The Minister’s appeal to the organized labour was clear: return to the table and engage in constructive dialogue. The government’s stance, he insisted, is not against fair wages but is rooted in the need for economic prudence and the overall health of the nation’s economy. By prioritizing a balanced approach, the government aims to ensure that wage increases do not come at the cost of widespread economic instability or job losses.

Budgetary Concerns and Ongoing Strikes

In his address, Idris pointed to the recent signing of the 2024 appropriation bill by President Tinubu. The bill, amounting to N28.7 trillion, is based on projected revenues of N19.7 trillion, leaving a budget deficit of N10 trillion. The minister highlighted that this deficit already poses a challenge, and adding an additional N9.5 trillion wage bill could further strain the government’s finances.

The organized labor’s threat of an indefinite strike over the minimum wage issue and the reversal of the April 3 electricity tariff hike adds another layer of complexity to the situation. Idris called for patience and understanding from the labor unions and the general public, emphasizing that the government is working diligently to address these issues in a manner that will not cripple the economy. The federal government’s primary goal, he reiterated, is to strike a balance between fair wages for workers and maintaining economic stability