In response to the ongoing discussions about the new minimum wage, the Presidency has criticized the demand by organized labour for a ₦497,000 minimum wage, deeming it unrealistic and unserious.
Organized labour initially demanded a minimum wage of ₦615,000, which was later reduced to ₦500,000 and then ₦497,000. However, the government and the private sector have only increased their offer to ₦57,000 during the latest Tripartite meeting.
Bayo Onanuga, the Special Adviser to the President on Information and Strategy, voiced the government’s concerns in an interview with Vanguard. He highlighted that the federal and state governments are burdened by bloated workforces, making the labour’s demands unfeasible.
Onanuga emphasized that any new minimum wage agreement should be based on the availability of resources. He stated, “The demand is outrageous. If you ask Mr. Ajaero or Mr. Osifo, the President of the TUC, how much they pay their drivers or lowest-paid workers, it wouldn’t be anywhere near ₦500,000 or ₦615,000. It’s unrealistic.”
He pointed out the excessive spending on recurrent expenditures, which would make it challenging for any level of government to allocate all their resources solely to pay workers. He remarked, “The last census of federal civil servants counted about 50,000. This does not include the police, army, or those employed by some agencies. These are the people Ajaero wants the Federal Government to pay ₦615,000.”
Onanuga argued that many civil servants show low productivity, yet labour leaders expect significant wage increases. He expressed concern over the states’ ability to meet such demands, citing difficulties some states have had in paying the current minimum wage of ₦30,000. “If some states have not paid the minimum wage announced by President Muhammadu Buhari five years ago, it indicates that they will also struggle with the new minimum wage. Labour needs to be realistic.”
He suggested that instead of focusing on higher wages, labour should advocate for reducing living costs. “Affordable housing, lower transport costs, and cheaper food will improve the earning power more effectively than simply increasing wages,” he said.
