The Presidency has issued a warning regarding the demands from organized Labour for a significant increase in the minimum wage, cautioning that it could have severe consequences for the Nigerian economy. During an appearance on TVC’s “Politics on Sunday with Femi Akande,” Presidential Media Adviser Ajuri Ngelale emphasized President Bola Tinubu’s commitment to improving the welfare of Nigerians.
However, he noted that the economic realities of the country make the new wage demands impractical.
Organized Labour, represented by the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), recently called for an indefinite nationwide strike starting Monday due to the failure of the Tripartite Committee on Minimum Wage to agree on a new minimum wage.
The 37-member committee, chaired by Bukar Goni Aji, includes representatives from the government, the organized private sector (OPS), and organized Labour.
Despite increased offers from the government and OPS up to N57,000, Labour reduced its initial demand from N615,000 to N497,000, leading to further disagreements.
Ngelale explained that meeting Labour’s demands would affect not only the federal civil service but also the entire economy, including small businesses and the informal sector. He warned that a 20-fold increase in wages would lead to massive job losses, business closures, and unsustainable price hikes for goods and services.
He urged Labour to consider the practical implications of their demands, which could worsen the struggles of Nigerian citizens through increased school fees and commodity prices.
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“President Bola Tinubu would love to have a minimum wage of N1 million per month for every Nigerian, but economic realities do not support what organized Labour is advocating,” Ngelale stated.
He emphasized that the issue extends beyond the federal civil service to a new national minimum wage for all Nigerian citizens, both in the formal and informal economies.
Ngelale highlighted the potential impact on small businesses and the broader economy, explaining that mandating such a wage increase would force many businesses to close, resulting in widespread job losses.
He also noted the potential repercussions for private schools and other sectors, where costs would become unsustainable, leading to significantly higher school fees and prices for goods and services.
Addressing whether President Tinubu would consider meeting Labour’s demands, Ngelale acknowledged the President’s empathy and concern for the Nigerian people.
However, he stressed that Tinubu is also pragmatic and would not allow Labour to push the government into an unachievable decision.
“We have never had a more pragmatic president who recognizes the acute challenges our people face,” Ngelale said.
He emphasized Tinubu’s attention to detail and commitment to doing what is right for Nigerian families while ensuring that any government action is sustainable and does not lead to mass retrenchment.
Ngelale concluded by reiterating that the government’s position is not about refusing to meet Labour’s demands but about ensuring the economic stability of the country.
The President is committed to balancing empathy for the people with practical economic decisions to avoid further hardship for Nigerians.
