N494,000 Minimum Wage proposed by labour Could Cripple Economy – fG

The Federal Government has warned that the N494,000 minimum wage proposed by organized labor could severely damage Nigeria’s economy. Minister of Information and National Orientation, Mohammed Idris, made this statement during a press briefing in Abuja.

Idris explained that the proposed wage hike would impose a N9.5 trillion financial burden on the government. He noted that the government had already agreed to double the minimum wage from N30,000 to N60,000, reflecting current economic conditions. However, he expressed strong dissatisfaction with the 1,547 percent increase demanded by labor unions.

According to Idris, the N494,000 minimum wage request would necessitate significant downsizing of the federal workforce, which currently stands at 1.2 million employees, and this could have dire consequences for the nation’s economy.

“The N494,000 national minimum wage sought by labor would result in a N9.5 trillion expenditure for the Federal Government,” Idris stated. “While the FG is committed to providing fair compensation for Nigerian workers, President Bola Ahmed Tinubu is not in favor of measures that could lead to significant job losses, particularly in the private sector, which may struggle to meet such wage demands.”

The organized labor groups have announced plans for an indefinite strike starting Monday, June 3, in response to the government’s failure to implement a new minimum wage and reverse the April 3 electricity tariff hike. This strike comes as President Tinubu recently signed the 2024 N28.7 trillion appropriation bill, which includes a projected revenue of N19.7 trillion and a budget deficit of N10 trillion.