Festus Osifo, President of the Trade Union Congress, has emphasized that the N494,000 minimum wage demand is not set in stone, indicating it as a starting point for negotiation rather than a fixed figure. In an interview on Channels Television, Osifo highlighted that the focus of organized labor is on the value of wages rather than the specific amount proposed.
He explained that the economic conditions, exacerbated by macroeconomic policies, have prompted the wage review. Osifo clarified, “We are not fixated on what we have proposed… When you are going for negotiation, you go with your best-case scenario. We have gone with ours; it’s left with the government to come with theirs.”
Concerns about the government’s ability to meet the wage demand persist, especially considering the ongoing struggle of many states to pay the existing N30,000 minimum wage set in 2019. The federal government estimated the proposed wage would cost over N9.5 trillion annually, potentially destabilizing the economy.
Former Central Bank Deputy Governor Kingsley Moghalu cautioned that Nigeria’s productivity levels might not support the N400,000 to N500,000 demanded by organized labor, suggesting a more moderate range of N75,000 to N100,000 to mitigate inflationary pressures.
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) had initiated a nationwide strike to press for their demands, but following emergency government intervention, the strike was temporarily suspended for five days to facilitate ongoing negotiations on the new minimum wage.
Tinubu directs Edun to prepare new minimum wage template in two days
President Bola Tinubu has directed Wale Edun, the minister of finance to present the cost implications for a new minimum wage within two days.
Tinubu gave the order at a meeting with the government negotiation team led by George Akume, the secretary to government of the federation, at the presidential villa in Abuja.
The organised labour had initially proposed N615,000 as the new minimum wage before reducing it to N497,000 and now N494,000 while the government is working out what it would be able to afford.
