Anambra State Governor Chukwuma Soludo has expressed concern over the potential approval of an “unsustainable” minimum wage by President Bola Tinubu.
Speaking at The Platform Nigeria, an event by Covenant Nation to mark Democracy Day 2024, Soludo emphasized that not all state governments and the organized private sector can afford the proposed ₦62,000 minimum wage by the Federal Government or the ₦250,000 demand from organized labour.
Soludo warned that implementing an unsustainable wage could lead to job losses and broader economic challenges.
He highlighted that the Nigerian Governors’ Forum, which includes all 36 state governors, has described the labour demands as unsustainable.
During his Democracy Day address, President Tinubu assured labour that an executive bill on the new national minimum wage would soon be sent to the National Assembly.
The decision will weigh the government’s ₦62,000 proposal against the ₦250,000 demand from organized labour.
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Soludo noted that, based on current estimates, Federal Government revenue is unlikely to exceed ₦17 trillion this year. This translates to just ₦6,160 per person per month.
He also argued that many private sector employers cannot afford the proposed minimum wage, citing discussions with nine entrepreneurs in his state, none of whom could pay the suggested amount.
“The minimum wage issue is complex. While workers are justified in seeking higher wages, we must consider the economic realities and the capacity of employers, including small businesses, schools, and churches,” Soludo said.
“Even if we agree to a high minimum wage, the consequences of such a decision will ultimately fall on the President. If the wage is unsustainable, it will lead to significant challenges in the months to come.”
