The Nigeria Labour Congress (NLC) and private sector operators have disagreed on the new minimum wage demand of N497,000. NLC President, Joe Ajaero, argued that the demand is in line with the socio-economic realities of Nigeria, citing the high cost of living and inflation. He also pointed out that the United Nations recommends a minimum daily wage of $2 per day, which translates to N360 per day or N10,800 per month, based on the current exchange rate.
On the other hand, private sector operators, represented by Bismarck Rewane, Managing Director of Financial Derivatives Company, contended that the minimum wage being demanded by Labour is not feasible.
Rewane argued that productivity in Nigeria is different from that in the US, and that the private sector, which is also expected to pay the minimum wage, is already struggling with losses and high interest rates.
Presidency Weighs In
The Presidency has also weighed in on the matter, describing the N497,000 demand as “outrageous” and “unrealistic”. Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated that the government has a bloated civil service and that many states are still struggling to pay the current minimum wage of N30,000. He advised Labour to be “realistic” and consider the availability of resources to pay the new minimum wage.
The disagreement highlights the challenges of arriving at a new minimum wage that balances the needs of workers with the economic realities of the country. The tripartite committee on the new minimum wage is expected to continue negotiations to arrive at a figure that is acceptable to all parties involved.
