The Federal Government of Nigeria has cautioned organized labor against pursuing a minimum wage increase that could trigger mass layoffs or harm the welfare of Nigeria’s 200 million citizens.
Speaking at the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja, Minister of Information and National Orientation, Mohammed Idris, emphasized the need for a sustainable wage system.
Addressing the conference, Idris warned that labor’s demand for a ₦250,000 minimum wage could destabilize the economy. He underscored the government’s commitment to reviewing the minimum wage but stressed that any increase must be realistic and economically viable.
“As I have repeatedly said, the Federal Government is not opposed to the increase of wages for Nigerian workers,” Idris stated. “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.”
Idris highlighted the government’s broader strategy to improve Nigerians’ economic well-being. He mentioned initiatives aimed at reducing living costs and increasing disposable income, such as the Presidential Compressed Natural Gas (CNG) initiative. “We want the labor 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. 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,” he said.
According to Idris, the CNG initiative, which aims to supplement or replace petrol with CNG, could significantly lower transportation costs, potentially reducing them by as much as 50%.
