The Presidency reiterated on Sunday that the N250,000 minimum wage demand from Organised Labor is not sustainable, cautioning that the Federal Government cannot allocate all its resources to meet such a request.
This warning comes after the Association of Local Governments of Nigeria expressed concerns over the proposed N62,000 by the Federal Government.
ALGON pointed out that if approved, this wage could strain the financial burden of the local councils.
Negotiations between the Federal Government and Organised Labor hit a deadlock on Tuesday, May 28, when the government and the Organised Private Sector increased their offers to N62,000.
Labor unions criticized the proposal as an insult to the intelligence of the average Nigerian worker, stating that they deserve a much better offer from the government.
In an exclusive interview with NewsNow, the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, suggested that the Nigeria Labour Congress and the Trade Union Congress should consider the broader population’s needs instead of focusing solely on the demands of their members.
Onanuga emphasized the need for Labor to be realistic, highlighting that the government has various other obligations aside from paying workers. He urged Labor to reconsider their stance instead of always resorting to disruptive actions.
As Tinubu announced during Democracy Day, an executive bill on the new national minimum wage will be presented to the National Assembly.
Regarding the timing of transmitting the bill, Onanuga mentioned the likelihood of it happening after the Sallah break, without specifying an exact date.
He also indicated that unless there are significant developments, the Federal Government may not engage with Labor leaders again.
Efforts to contact labor leaders on Sunday were unsuccessful, as they were returning from the International Labour Organization conference in Geneva.
Meanwhile, the tripartite committee commissioned by the Federal Government to review the minimum wage urged labor unions to reconsider their wage demands.
The committee’s chairman, Bukar Aji, encouraged labor to reassess their position based on economic factors and non-monetary incentives provided by the government, advocating for labor to accept the N62,000 minimum wage proposed by the Federal Government.
Aji highlighted various government incentives, such as wage awards, grants, financial inclusion initiatives, and stipends, aiming to mitigate the impact of the minimum wage on businesses and employment.