N494,000 Minimum Wage will cost 9.5 trillion a year, will damage Nigeria’s economy — FG

N494,000 Minimum Wage will cost 9.5 trillion a year, will damage Nigeria’s economy — FG

The Federal Government has warned that the N494,000 minimum wage proposed by organized labour could severely damage Nigeria’s economy.

During a press briefing in Abuja, Minister of Information and National Orientation, Mohammed Idris, explained that the demand would impose a N9.5 trillion expenditure burden on the government.

Idris highlighted that the government had already agreed to double the current minimum wage from N30,000 to N60,000 to reflect the current economic realities.

However, he criticized the proposed 1,547 percent increase to N494,000 by organized labour.

The minister emphasized that meeting labour’s demand could force the government to reduce its 1.2 million workforce, which would be detrimental to the nation’s economic stability.

He said, “The sum of N494,000 national minimum wage which Labour is seeking would cumulatively amount to the sum N9.5 trillion bill to the Federal Government of Nigeria.

“Nigerians need to understand that whereas the FG is desirous of ample remuneration for Nigerian workers, what is most critical is that President Bola Ahmed Tinubu will not encourage any action that could lead to massive job loss, especially in the private sector, who may not be able to pay the wage demanded by the Organised Labour.”

Recall that the Organized labour is set to begin an indefinite strike on Monday, June 3, due to the government’s failure to implement a new minimum wage and reverse the April 3 electricity tariff hike.

On January 1, President Bola Ahmed Tinubu signed the 2024 appropriation bill, which includes a N28.7 trillion budget with projected revenue of N19.7 trillion and a budget deficit of N10 trillion.