The Federal Government has stated that the N494,000 new minimum wage proposed by organized labor could severely harm Nigeria’s economy.
Minister of Information and National Orientation, Mohammed Idris, mentioned this at a press briefing in Abuja.
The minister expressed concerns that the N494,000 minimum wage demand would impose a N9.5 trillion financial burden on the government.
He explained that they had already agreed to double the minimum wage to N60,000 from N30,000 to reflect the current economic conditions.
Idris criticized the 1,547 percent increase in the new minimum wage proposal by organized labor.
He warned that the N494,000 demand would force the government to reduce its 1.2 million workforce, which would be detrimental to the country’s economy.
Idris said, “The N494,000 national minimum wage sought by labor would result in a cumulative N9.5 trillion expense for the Federal Government of Nigeria.
He added, “While the FG aims to provide adequate remuneration for Nigerian workers, it is crucial to note that President Bola Ahmed Tinubu will not support actions that could lead to significant job losses, particularly in the private sector, which might not afford the wage demanded by Organized Labour.”
It is worth noting that organized labor is planning an indefinite strike starting Monday, June 3, due to the government’s failure to implement a new minimum wage and reverse the April 3 electricity tariff hike.
President Bola Ahmed Tinubu signed the 2024 N28.7 trillion appropriation bill on January 1, with projected revenue of N19.7 trillion and a budget deficit of N10 trillion.
