Former Deputy CBN Governor Speaks on New Minimum Wage as NLC, TUC Reject N60k

• A former CBN deputy governor has explained why the N400,000 minimum wage demanded by organised labour is unrealistic
• He proposed that a 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 three years of experience covering the Economy, Technology, and Capital Market.

A 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 requested by organised labour.

In a statement posted on his X account on Tuesday, June 4, the former presidential candidate suggested setting a minimum wage of N75,000 to N100,000.

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Minimum Wage: Labour considers slashing N494k demand as Tinubu gives fresh order, details emerge

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 disrupted economic activities 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.

Moghalu recommends between N75,000 and N100,000

In response to the development, Moghalu stated that the nation's low or non-existent economic productivity is the central argument in the discussion over the minimum wage at the federal level.

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He said:

“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."

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.

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Minimum wage strike: Organised labour takes decision on FG’s payment of N494,000

Private sector accepts FG's N60,000 minimum wage

Legit.ng earlier reported that the director-general of the Manufacturing Association of Nigeria (MAN), Ajayi Kadri, confirmed that the organised private sector (OPS) accepted President Bola 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.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng