Minimum Wage: Presidency Deems N250,000 Demand ‘Unrealistic

The Presidency has dismissed the demand by organized labor in Nigeria for a N250,000 minimum wage as “unrealistic” and “unaffordable” given the current economic conditions.

Presidential Adviser Bayo Onanuga stated that neither the Federal Government nor the private sector can meet this demand. Onanuga noted that even the initial offer of N60,000 was rejected by governors, making labor’s demand unattainable.

Speaking on the live radio program “Crossfire” on Nigeria Info 99.3 FM Lagos, Onanuga said: “The amount they’re still 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. And 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 labor should reconsider its position.”

He added: “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 labor demand follows weeks of failed negotiations on a new minimum wage. Organized labor had declared an indefinite strike on June 3, paralyzing businesses across the country and shutting down essential services. The labor unions argue that the current minimum wage of N30,000 can no longer cater to workers’ well-being, citing the effects of petrol subsidy removal and forex unification. They argued that the Minimum Wage Act of 2019, signed by former President Muhammadu Buhari, should be reviewed every five years to meet contemporary economic demands.

This led to the inauguration of a tripartite committee by President Bola Tinubu in January 2024 to negotiate a new minimum wage. Labor initially demanded N615,000, later reducing it to N494,000 and then N250,000. Meanwhile, the government and private sector offered N48,000, N54,000, N57,000, and N60,000, all rejected by labor.

After a strike which was suspended for a week, the labor unions resumed talks with the government, with the President directing the Minister of Finance to present a template for a new minimum wage. However, both sides again failed to reach an agreement, with labor demanding N250,000 and the government offering N62,000. Currently, the President is expected to make a decision and send an executive bill to the National Assembly to pass a new minimum wage bill.