FG Warns Labour: N494,000 Minimum Wage Could Lead to Massive Job Losses

The Federal Government has deemed the organized labour’s demand for a N494,000 national minimum wage as unsustainable, highlighting that it would amount to a staggering N9.5 trillion annually and could destabilize the economy. This statement was made by the Minister of Information and National Orientation, Mohammed Idris, during a news conference in Abuja.

Idris responded to threats by organized labour to go on strike if their demands were not met. He pointed out that the Federal Government’s offer of a N60,000 minimum wage, which represents a 100% increase from the existing 2019 minimum wage, had already been accepted by the organized private sector. This was outlined in a press release signed by Rabiu Ibrahim, Special Assistant (Media) to the Minister, on June 1, 2024.

“The Federal Government’s new minimum wage proposal amounts to a 100% increase on the existing minimum wage of 2019. Labour, however, is seeking N494,000, which would be a 1,547% increase on the current wage,” Idris explained.

He elaborated that the N494,000 minimum wage demanded by labour would lead to an annual bill of N9.5 trillion, a burden too heavy for the economy to bear. The Minister stressed the government’s commitment to fair remuneration for workers but emphasized the importance of economic stability and the welfare of over 200 million Nigerians.

“President Bola Ahmed Tinubu will not support any action that could result in massive job losses, particularly in the private sector, which may struggle to meet the wage demands of organized labour,” Idris stated.

He underscored that while labour is focused on the pay of about 1.2 million workers, the government is concerned with the broader impact on the nation’s economy, following its principles of affordability and sustainability.

Idris called on organized labour to return to the negotiating table and accept a reasonable and realistic wage. He reassured that due to the Tinubu administration’s commitment to worker welfare, the interim wage award of N35,000 for federal workers would continue until a new national minimum wage is established.

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