The President of the National Labour Congress (NLC), Joe Ajaero, suggests that if inflation and other economic indicators worsen, the Federal Government should consider a monthly minimum wage of N1 million.
Ajaero made this statement during an interview with Arise Television on Sunday. He emphasized that any new minimum wage must take into account the economic realities of the country, particularly with the continuous depreciation of the naira against the dollar, which inevitably leads to demands for a higher minimum wage.
He reiterated that the initial proposal of N200,000 for the minimum wage is no longer feasible, pointing to the escalating prices of food items and inflationary pressures in the economy.
Ajaero mentioned that organized labor is scheduled to meet with the Federal Government on Monday to discuss resolutions regarding the strike notice issued jointly by the NLC and the Trade Union Congress (TUC).
He explained, “The suggestion of N1 million may become necessary if the value of the Naira keeps depreciating and inflation persists. The demand for labor is also influenced by societal factors.”
Ajaero highlighted the fluctuations in exchange rates, citing an increase from about N900 to N1,400 or even higher. He emphasized that these factors, including the rising cost of living, must be considered in wage negotiations.
He pointed out the exorbitant prices of essential goods like rice, which now range from N60,000 to N70,000 per bag, making it crucial to ensure that the minimum wage covers basic necessities, including transportation costs.
Ajaero emphasized the need for the federal government to factor in these issues during negotiations and demonstrate commitment to addressing them.
It’s worth noting that organized labor had issued a 14-day nationwide strike notice the previous week. However, President Bola Ahmed Tinubu’s administration appealed to workers not to embark on a strike, citing concerns over the country’s economic condition.
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