FG Threatens Mass Sack as Labour Demands N250,000 Minimum Wage

Mohammed Idris, Minister of Information and National Orientation

FG warns of mass dismissal as planned Labour insists on a minimum wage of N250,000.

FG warns of mass dismissal as labour insists on N250,000 minimum wage, amid ongoing negotiations and economic concerns.

The Federal Government has asked organized labour to consider the larger economic implications of their call for an unrealistic hike in the national minimum wage. 

Mohammed Idris, Minister of Information and National Orientation, said on Wednesday, June 12, that Labour's demand for a N250,000 minimum salary might undermine the economy, cause extensive job cutbacks, and imperil Nigerians' wellbeing. 

However, labour unions challenged President Bola Tinubu's claims made during his Democracy Day speech on the same Wednesday, denying that an agreement had been reached on the new national minimum wage.

Nigeria Labour Congress (NLC) Acting President, Prince Adewale Adeyanju, stated that the Tripartite Committee on National Minimum Wage had not reached a consensus as of June 7, contradicting earlier claims of an agreement. Adeyanju, standing in for NLC President Joe Ajaero, who is currently attending an International Labour Organisation conference in Geneva, Switzerland, clarified the situation.

President Tinubu's announcement that his administration would soon submit an executive bill to the National Assembly to formalize the minimum wage negotiations sparked criticism from the unions. The unions argued that the announcement was premature, as no consensus had been reached, and that Labour, the private sector, states, and the Federal Government were still engaged in ongoing negotiations.

Prolonged negotiations between the parties spanned several weeks, with the unions pushing for a minimum wage of N250,000, while the Federal Government and the Organised Private Sector countered with a proposal of N62,000. However, state governors expressed their inability to sustain a minimum wage exceeding N60,000, citing financial constraints.

The labour unions categorically rejected the offers from the Federal Government and the OPS, deeming them unacceptable and equivalent to a “starvation wage.” Chris Onyeka, Assistant General Secretary of the NLC, emphatically stated that Labour would not consider either the recent offer of N62,000 or the alternative proposal of N100,000 suggested by certain individuals and economists, as they fell short of their demands.

NLC President Joe Ajaero stated that union members were eagerly awaiting President Tinubu's review of Labour's proposal, expecting a response to their demands.

At the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja, Minister of Information Alhaji Lai Mohammed emphasized the need for a realistic wage system that balances workers' needs with the risk of massive job losses. He reiterated the government's commitment to reviewing the minimum wage but cautioned against excessive demands that could disrupt the economy's stability.

He stated, “As I have repeatedly said, the Federal Government is not opposed to the increase of wages for Nigerian workers but we keep on advocating for a realistic and sustainable wage system for the workers - a wage system that will not undermine the economy, lead to mass retrenchment of workers and jeopardize the welfare of about 200 million Nigerians.

“We want the labour unions to understand that the relief that Nigerians are expecting, and that they fully deserve, will not come only in the form of an increase in wages.”

The Minister highlighted the government's efforts to alleviate the cost of living, citing initiatives like the Presidential Compressed Natural Gas (CNG) program, which aims to reduce transportation costs by 50%. This program is a key example of the government's commitment to addressing the economic challenges faced by citizens.

While acknowledging the need for wage increases, the Minister stressed the importance of adopting a holistic approach to relief measures that goes beyond mere salary adjustments. He encouraged Labour to recognize the positive impact of initiatives like the CNG program on enhancing citizens' purchasing power and overall economic well-being.

“It will also come as an effort to reduce the cost of living and to ensure that more money stays in the pockets of Nigerians. And this is where programmes like the Presidential CNG initiative come in.

“By replacing or complementing petrol usage with CNG, that programme alone will cut transportation costs by as much as 50 percent,” he claimed.