Presidency Responds to Labour’s Demand for N250,000 Minimum Wage: “It Cannot Be Paid”
Presidency Reacts to Labour’s Demand for N250,000 Minimum Wage: “Unrealistic and Unaffordable”
The Presidency has dismissed the demand by labour unions for a N250,000 minimum wage, describing it as “unrealistic” and “unaffordable.”
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Presidential Adviser Bayo Onanuga stated that neither the Federal Government nor the private sector can meet this demand. He noted that even the initial offer of N60,000 was rejected by governors, making labour’s demand unattainable.
Speaking on the live radio programme Crossfire on Nigeria Info 99.3 FM Lagos, Onanuga said: “The amount they’re demanding is unrealistic. It cannot be paid by the Federal Government. It cannot be paid by the private sector. All of them will shut down. The governors have said they cannot pay the N60,000 that the private sector and the Federal Government were offering before. That’s where we are today. I think that labour should reconsider its position.”
Onanuga also highlighted budget constraints: “If you look at the budget this year – N28 trillion. And you are paying N5 trillion on wages alone; what are you going to spend on the other things that the government does?”
The labour demand follows weeks of failed talks on a new minimum wage. Organized labour declared an indefinite industrial action on June 3, paralyzing businesses across the country and shutting down essential services. Labour unions argue that the current minimum wage of N30,000 is insufficient, especially given the effects of petrol subsidy removal and forex unification.
Citing the Minimum Wage Act of 2019, which mandates a review every five years, labour’s initial demand of N615,000 was later reduced to N494,000 and then N250,000. In contrast, the government and private sector offered N48,000, N54,000, N57,000, and N60,000, all of which were rejected by labour.
After a suspended strike and resumed talks, the President directed the Minister of Finance to present a new minimum wage template. However, both sides failed to reach an agreement, with labour demanding N250,000 and the government offering N62,000.
The decision now awaits the President, who is expected to send an executive bill to the National Assembly to pass a new minimum wage bill.
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