Anambra State Governor, Chukwuma Soludo, insisted that concerns raised around the proposed new minimum wage for Nigerian workers must be well considered.
The warned that the new minimum wage potential sustainability and the economic repercussions must be weighed so that it does not trigger other consequences.
Soludo, who spoke at The Platform Nigeria, a Democracy Day event organized by Covenant Nation in Lagos, stressed the challenges that a high minimum wage could pose for state governments and the private sector.
In particular, the former Governor of the Central Bank of Nigeria (CBN) also vouched his apprehension about the ₦62,000 minimum wage proposed by the Federal Government and the ₦250,000 demanded by the Organised Labour.
He warned on consequences of wage increments that could lead to job losses and further economic difficulties, making the situation untenable for many employers.
According to him, “Not all state governments and the Organised Private Sector can afford to pay the ₦62,000 being proposed by the Federal Government and the ₦250,000 demand of the Organised Labour.”
He disclosed that the private sector employs a significant portion of the workforce and would struggle to pay any high minimum wage increment.
He said, “I spoke with nine entrepreneurs in my state, and none of them could pay the proposed amount by Labour.
“At the best of estimates, the Federal Government revenue won’t exceed ₦17 trillion this year. If you share it with all Nigerians, it comes to ₦6,160 per person, per month, per capita. If you take even the total ₦28.7 trillion budget and share, it will come down to ₦10,000 per capita.”
The Governor reiterated the need for a balanced approach, acknowledging the validity of workers’ demands while also considering the practical limitations faced by employers.
“The worker is right to ask, ‘What am I getting?’ But we also need to consider what a worker actually does. Even if we pay ₦1 million, it might not be enough, but we have to face reality,” he said.
However, Soludo also warned of the long-term implications of an unsustainable wage policy.
“I pity the President because it will all be on his head if the consequences come down. Whatever is negotiated if unsustainable or unpayable, months to come, who will bear the responsibility? Not me,” he said.
He called for a more pragmatic discussion on the minimum wage, highlighting the need for continuous dialogue and adjustment based on economic realities.
“Whatever they agree on, we will muddle through, but maybe after one year, we will need to meet to discuss the consequences,” he stressed.
CREDIT: NEWSTIDE247