Victor EzejaFormer Deputy Governor of the Central Bank of Nigeria (CBN), Prof. Kingsley Moghalu has countered the proposal by President of the Nigerian Labour Congress (NLC), Comrade Joe Ajero, that organised labour might push for a new minimum wage of up to N1 Million for Nigerian workers if the ongoing inflation continues.
Ajero stated that in an interview on Arise TV’s ThisDay Live anchored by Reuben Abati on Sunday.
He was asked how much the labour group would be negotiating with the new minimum wage committee inaugurated by President Bola Tinubu in January.
The NLC president said their proposal is based on the rising cost of things and the exchange rate, noting that initially, they were contemplating N200,000 as minimum wage, when the exchange rate was about N800 and N900, but today, it is about N1,400 or even more.
He said: “This N1 million may be relevant if the value of the naira continues to depreciate and inflation continues to rise if it is not checked. The labour’s demand is equally dependent on what is happening in society. We have always said that our demand will be based on the cost of living index,” Ajero said.
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“Foodstuffs are getting out of reach. Are we going to get a minimum wage that will not be enough for transportation, even for one week? We have to factor in all these issues, and that will determine the federal government’s determination.
“The old minimum wage will be expiring by April, and, ordinarily, the federal government ought to have set up a committee six months before that time so that negotiations would have commenced, but the federal government didn’t do that until they inaugurated a committee, and the committee has not sat.
“It appears we are going to work within one month or two to agree on a figure, and I doubt how those ones are going to… especially when you look at the people that the federal government assembled as members of the committee.”
Reacting to Ajero’s comment on what organised labour may likely demand when they meet the new minimum wage committee, Prof. Moghalu said Nigerian workers deserve a new minimum wage because of current realities but not up to N1 million. “Nigerian workers need a new and appropriate minimum wage, but not N1m,” Moghalu stated.
Netizens who reacted to the proposal said N1 million as minimum wage is on the high side but the government needs to come up with policies that show it cares about the welfare of the common person in the country, especially in these hard times.
“The N1m is overboard no doubt, but has the government acted in any way as though they feel the plight of the people? No. Everything is not about money. Put in place policies that would make people see that you feel their pain and act right,” an X user @Henrysmilesedeh wrote.
Another X user @Kabirum09 said the N1 million minimum wage is unrealistic in Nigeria because the cost of doing business is high and productivity is low, making it impossible for employers to raise such money to pay workers. He said: “How can a govt make a minimum wage efficient and effective when the cost of doing business is high & productivity is low? Where do businesses get the money to pay such wages?”
Another netizen said such demand by labour was because of the manner in which public officeholders siphon public funds.
Comparing it with the current cost of things and exchange rate, another X user @Donmillitex wrote: “What is 1 million now, just equivalent to $700”
In response to the economic hardship in the country as a result of the ongoing reforms, the Federal had in October announced that it would pay a N35,000 wage award to workers for six months, but four months after, there are concerns that the government has not kept the promise. This prompted organised labour to issue a 14-day ultimatum to the government to fulfil its promises to the citizens. The ultimatum contained in a joint statement issued by the NLC and the Trade Union Congress (TUC) will expire on February 23. The labour unions said they were compelled to issue the ultimatum given the worsening economic crisis which is taking a heavy toll on the citizens while the government keeps reneging on its promises.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
