Anambra State Governor, Chukwuma Soludo, has voiced concerns over the proposed new minimum wage for Nigerian workers, warning of its potential unsustainability and the economic repercussions it could trigger.
Speaking at The Platform Nigeria, a Democracy Day event organized by Covenant Nation in Lagos, Soludo highlighted the challenges that a high minimum wage could pose for state governments and the private sector.
The former Governor of the Central Bank of Nigeria (CBN) expressed his apprehension about the ₦62,000 minimum wage proposed by the Federal Government and the ₦250,000 demanded by the Organised Labour.
Soludo cautioned that such wage increments could lead to job losses and further economic difficulties, making the situation untenable for many employers.
“Not all state governments and the Organised Private Sector can afford to pay the ₦62,000 being proposed by the Federal Government and the ₦250,000 demand of the Organised Labour,” Soludo stated.
He emphasized that the private sector, which employs a significant portion of the workforce, would struggle to meet these demands.
“I spoke with nine entrepreneurs in my state, and none of them could pay the proposed amount by Labour,” he added.
Soludo noted that the current economic conditions make it difficult to support such high wage increases.
“At the best of estimates, the Federal Government revenue won’t exceed ₦17 trillion this year. If you share it with all Nigerians, it comes to ₦6,160 per person, per month, per capita. If you take even the total ₦28.7 trillion budget and share, it will come down to ₦10,000 per capita,” he explained.
The Governor reiterated the need for a balanced approach, acknowledging the validity of workers’ demands while also considering the practical limitations faced by employers.
“The worker is right to ask, ‘What am I getting?’ But we also need to consider what a worker actually does. Even if we pay ₦1 million, it might not be enough, but we have to face reality,” he said.
However, Soludo also warned of the long-term implications of an unsustainable wage policy.
His words: “I pity the President because it will all be on his head if the consequences come down. Whatever is negotiated if unsustainable or unpayable, months to come, who will bear the responsibility? Not me.”
The Anambra governor called for a more pragmatic discussion on the minimum wage, highlighting the need for continuous dialogue and adjustment based on economic realities.
“Whatever they agree on, we will muddle through, but maybe after one year, we will need to meet to discuss the consequences,” he concluded.
In a related development, the Labour Party (LP) has called on workers’ unions to re-negotiate with the government for a new minimum wage instead of embarking on industrial action.
National Publicity Secretary Obiora Ifoh emphasized that a strike would only increase the hardship and suffering of Nigerians already grappling with numerous challenges.
Ifoh expressed concerns over the unions’ demand for a N494,000 minimum wage, labelling it as unrealistic.
