The Nigerian Government has stated that the new minimum wage of N494,000 proposed by organized labor could severely damage the country’s economy.
Minister of Information and National Orientation, Mohammed Idris, expressed this concern during a press briefing in Abuja in response to labor’s demands and their planned indefinite strike.
The minister highlighted that the proposed N494,000 minimum wage would impose a N9.5 trillion expenditure burden on the government.
He explained that the government had already agreed to double the current minimum wage from N30,000 to N60,000, reflecting current economic conditions. However, he criticized the 1,547 percent increase proposed by organized labor.
Idris emphasized that meeting labor’s demand for a N494,000 minimum wage would force the federal government to reduce its 1.2 million workforce, which would be detrimental to the economy.
“The N494,000 national minimum wage which labor is seeking would cumulatively amount to a N9.5 trillion bill for the Federal Government of Nigeria,” he said.
He added that while the government is committed to providing fair compensation for workers, President Bola Ahmed Tinubu would not support actions that could lead to significant job losses, especially in the private sector, which might struggle to meet labor’s wage demands.
The organized labor is set to begin an indefinite strike on Monday, June 3, over the government’s failure to implement a new minimum wage and the reversal of the April 3 electricity tariff increase.
It is noteworthy that 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.