The Presidency insisted on Sunday that the demand by Organised Labour for a N250,000 minimum wage is unsustainable, warning that the Federal Government cannot allocate all its resources to meet such a demand.
This warning follows concerns raised by the Association of Local Governments of Nigeria (ALGON) two days earlier over the N62,000 minimum wage proposed by the Federal Government. ALGON warned that this wage could strain the financial burden of local councils.
On May 28, talks between the Federal Government and Organised Labour broke down after the government and the Organised Private Sector increased their offers to N62,000. However, labour unions described the proposal as an insult to the intelligence of the average Nigerian worker, arguing that workers deserve far better.
In an exclusive interview with The PUNCH, Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, emphasized that the resources meant for all Nigerians could not be diverted solely for the benefit of a small fraction of the population.
“That is why we keep telling labour to be realistic because the government cannot use all its resources to pay workers. They have other things to do. The workers we are even talking about are not up to 10 per cent of the population. Many people are self-employed or engaged in the private sector, who are not members of Labour, and are not affected by this demand,” Onanuga stated.
He added, “This is even more reason why labour has to reconsider their decision critically instead of always striving to shut down the system. What the FG did was in consultation with the private sector and others. Only Labour, which appears to be in the minority, kept saying they won’t accept N62,000. They are not even employers but employees. Let us wait and hear what they are going to say after their return from the ILO conference. But they have to be realistic.”
During his Democracy Day address, President Tinubu announced that an executive bill on the new national minimum wage would be sent to the National Assembly. Onanuga indicated that while he could not provide an exact date, the bill might be transmitted after the Sallah break.
The presidential media aide also noted that the Federal Government might not meet with Labour leaders again unless new developments arise. “I am not certain when he plans to do it (the bill). Maybe after Sallah. But I am not sure whether the FG is meeting with them or whether its position on the minimum wage has changed. Don’t forget the current amount on the table was arrived at by the committee that also has the private sector where the NECA and NACIMMA were also represented. That was the figure the FG delegation, sub-nationals, employers, NECA and other sectors agreed on. So, the FG cannot just decide on any other amount of money on its own without carrying these people along. And the government cannot just decide anything without ensuring that the state and local governments are able to pay,” he said.
Attempts to reach labour leaders on Sunday were unsuccessful as sources informed correspondents that they were returning from the International Labour Organisation conference in Geneva.
Meanwhile, the tripartite committee established by the Federal Government to review the minimum wage urged labour unions to reassess their wage demands. Speaking with NAN on Sunday, the committee’s chairman, Bukar Aji, called on labour to reconsider their position based on economic factors and the non-monetary incentives provided by the government.
Aji highlighted several government incentives, including a N35,000 wage award for all treasury-paid federal workers, N100 billion for gas-fuelled buses and gas kit conversions, a N125 billion conditional grant, financial inclusion for small and medium enterprises, and a N25,000 monthly stipend for 15 million households over three months. He also mentioned N185 billion in palliative loans to states to mitigate the effects of petrol subsidy removal, N200 billion to boost agricultural production, N75 billion to strengthen the manufacturing sector, and N1 trillion for student loans, among other interventions.
Aji called on labour unions to consider accepting the N62,000 minimum wage offered by the Federal Government, warning that an unrealistic minimum wage could lead to further job losses, especially as many businesses are already struggling.
