Minimum wage: N494,000 demand by organized labour will cripple economy-FG

The Nigerian Government has said the N494,000 new minimum wage proposed by the organized labour is capable of crippling Nigeria’s economy.

The Minister of Information and National Orientation, Mohammed Idris disclosed this during a press briefing in Abuja while reacting to organized labour demand and indefinite strike action.

The minister lamented that the N494,000 minimum wage demand would amount to a N9.5 trillion expenditure burden to the government.

According to him, they had agreed to increase the country’s minimum wage by 100 percent to N60,000 from N30,000 in line with the current economic realities.

He frowned at the 1,547 percent new minimum wage proposal by the organized labour.

He noted labour’s N494,000 minimum wage demand will make the federal government downside its 1.2 million workforce which does not portend any good for the country’s economy.

“The sum of N494,000 national minimum wage which Labour is seeking would cumulatively amount to the sum N9.5 trillion bill to the Federal Government of Nigeria.

“Nigerians need to understand that whereas the FG 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, especially in the private sector, who may not be able to pay the wage demanded by the Organised Labour,” he said.

the organized labour is billed to embark on indefinite strike on Monday, June 3, over the government’s failure to implement a new minimum wage and reversal of the April 3 electricity tariff hike.

Recall that President Bola Ahmed Tinubu on January 1 signed the 2024 N28.7 trillion appropriation bill with projected revenue of N19.7 trillion and a budget deficit of N10 trillion.