The Presidency has stated that giving in to the organized Labour’s demand for a minimum salary of N494,000 will worsen the country’s economy. Ajuri Ngelale, the Presidential spokesperson, stated on TVC’s “Politics” that allowing Labour to have its way would be detrimental to the country.

The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have declared an indefinite nationwide strike in response to the Federal Government’s refusal to accept the new minimum wage. While the workers’ unions demanded N494,000, the Federal Government offered N60,000. 

Speaking about the development, Ngelale stated that if the Federal Government and the Organised Private Sector (OPS) pay what Labour demands, many small firms will close.

“I want to be absolutely clear about what would happen if organized labour had its way. There is currently a widespread belief that the minimum wage debate in the country is essentially a discourse between a Federal Executive Administration and organized labour about a new minimum wage for the Federal Civil Service. That is not what we are discussing. We’re discussing a new national minimum wage for all Nigerian citizens, including those in formal and informal economies.

“This has repercussions. Essentially, we’re moving from the existing minimum wage to, if labour had its way, somewhere towards N500,000 per month; that’s almost 20 times, right? So, the influence it would now have on the country’s population is that if you’re thinking of a shop that sells chinchin and bakery goods and services.

“The idea that you are going to mandate them to pay 20 times whatever it is they’re paying their staff within that small business, you know that you are essentially mandating the closure of that business, and you are indirectly sacking the entire set of people who happen to be working there because that business is closing because they cannot live up to the minimum wages that organised Labour is asking for,” he stated.

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