- CBN governor said that the N400,000 or N500,000 minimum wage that organised labour is requesting is not realistic
- He proposed that the minimum wage of N75,000 to N100,000 should be considered instead to keep inflation in check
- This came after a peace accord was reached at a meeting on Monday night with a delegation of the federal government
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Former deputy governor of the Central Bank of Nigeria, Kingsley Moghalu, stated that the nation’s productivity is insufficient to meet the N400,000 or N500,000 minimum wage that organised labor is requesting.
Source: UGC
In a statement posted on his X account on Tuesday, the former presidential contender suggested setting a minimum wage of N75,000 to N100,000.
The federal government and organised labour have been at odds over a new minimum wage for some time.
After failing to achieve a minimum wage settlement with the Tripartite Committee, labour unions went on strike on Monday.
The administration was forced to schedule an emergency conference with the unions as a result of the industrial action, which p*ralyzed economic activity nationwide.
Following a peace accord reached at a meeting on Monday night with a delegation of the federal government led by George Akume, the secretary to the government of the federation, the striking workers did, however, decide to suspend their strike for five days on Tuesday.
Moghalu recommends between N75,000 and N100,000
In response to the development, Moghalu stated that the nation’s low or nonexistent economic productivity is the central argument in the discussion over the minimum wage at the federal level.
“In the debates on national wage in Nigeria, we miss the fundamental point: there is little or no productivity in the economy. If we had a truly productive economy there is no reason we can’t have the kind of minimum wage of 400 or 500K that Labour wants.
“But we can’t, because the level of productivity in the economy cannot support it. Remember, minimum wage is not just about government salaries. There are not more than 2, at most 3 million civil servants in Nigeria. It is even more about what is paid in the private sector, to household staff, etc,”
he said.
The economist warned against minimum wage that could worsen the country’s inflation rate, recommending between N75,000 and N100,000.
He said,
“All of this is why, all things considered, including avoiding a minimum wage that multiplies already ravaging inflation (assuming such a wage can even be paid), I recommend a minimum wage of between N75,000 and N100,000.
Private Sector Accepts FG N60,000 Minimum Wage
Legit.ng reported that the director-general of the Manufacturing Association of Nigeria (MAN), Ajayi Kadri, has confirmed that the organised private sector (OPS) accepted President Bola Ahmed Tinubu’s proposal for a new minimum wage of N60,000.
The MAN DG clarified that ongoing negotiations between the government, the private sector, and labour were focused on establishing a minimum wage rather than a living wage, which represents the lowest amount that can be paid to any worker in the country.
Ajayi disclosed this during an interview with Channels TV in Abuja on Saturday, June 1.
Source: Legit.ng
