Tinubu Presidency Sends Strong Warning To Labour Over N494,000 Minimum Wage Demand
The Bola Tinubu Presidency has faulted the N494,000 demanded by organised labour as the new minimum wage, describing it as an economic death sentence for small businesses and a direct attack on the livelihoods of countless Nigerians.
This comes as organised labour on Monday began a nationwide indefinite strike to push for a living wage for workers after the government offered to pay N60,000.
Presidential spokesman, Chief Ajuri Ngelale on Monday said paying workers about N500,000 as minimum wage will have more negative impact on the economy.
“The idea that you are going to mandate them to pay as much as 20 times whatever they are paying their staff within that small business is uncharitable,” Ngelale declared. “You are essentially mandating the closure of that business, and indirectly sacking an entire set of people who have families because that business will close down as they cannot live up to the minimum wage Organized Labour is asking for.”
He issued the statement through his official X account on Monday, June 3, 2024.
Ngelale did not hold back as he painted a grim picture of mass job losses that would sweep across various sectors. He said, “Aside from mass job losses across sectors at a time we are looking for job opportunities for the teeming youth population of our country, we are also talking about private schools.
“You are going to mandate schools to pay cooks, janitors, and others 20 times more in wages? What that would mean is that if those schools do not close down, there will be mass retrenchment.”
With an air of urgency, Ngelale emphasised the dire consequences of Labour’s demands.
“What we all agree on is that the minimum wage today is unsustainably low. But going by Labour’s demand, Nigerian parents will now have to grapple with school fees that are 10 times more than what they are paying today. We also need to look at the price of food items and other commodities,” he said.
He continued, “This is the pragmatic assessment that needs to be made public so that everyone understands that it is not a matter of the government wanting to maintain its revenue as much as possible; no, we are talking about an existential issue for the Nigerian economy and the people, and it should be treated as such.”
Ngelale dispelled the misconception that the minimum wage debate is solely between the Federal Government and Organised Labour regarding federal civil servants. “There is the notion that the minimum wage conversation in the country is simply between the Federal Government and Organized Labour about a new minimum wage for the Federal Civil Service. That is not what we are talking about. We are talking about a new national minimum wage for every Nigerian citizen – both within the formal economy and the informal economy. This has serious ramifications.”
He laid out the stark reality of the proposed wage increase, stating, “Essentially, we are moving from the current minimum wage of N30,000 to about N500,000 per month if Labour has its way. What impact will this have on the citizens of the country?
“We are not talking about the impact as regards the government now. We are talking about our people. We are talking about that mom-and-pop shop dealing in chin-chin and other pastries. These demands would decimate them.”
“Everyone must understand: this is not a trivial issue. This is about the survival of the Nigerian economy and the well-being of its people. And it must be treated with the gravity it deserves,” he added.
