The private sector accepts a minimum FG wage of N60,000

Manufacturers Association of Nigeria (MAN) Director General, Ajayi Kadri, says the organized private sector has accepted the Federal Government’s proposal for a new minimum wage of N60,000.

Kadri stated this during an interview with ChannelsTV in Abuja on Saturday, June 1.

He noted that ongoing negotiations between the government, the private sector and organized labor were focused on setting a minimum wage, not a living wage, which is the lowest amount that can be paid to any worker in the country.

Kadri maintained that both workers and private companies face serious economic challenges, making it extremely difficult for them to meet wage demands made by trade unions.

He stated: “First of all, this is a very difficult time for anyone to negotiate the minimum wage.

“From the perspective of government, workers and the organized private sector, we operate in an environment where there is widespread acceptance that macroeconomics is not right, even the global economy is experiencing many shocks and fallout from necessary government reforms.

“From the beginning of the negotiations on the trilateral minimum wage – that is, the government, workers and the organized private sector – it was obvious that we would be operating in difficult terrain.

“By the way, the organized private sector and the government have offered ₹60,000 as the minimum wage and I think it is very important that we understand that what we are talking about is the minimum wage. Some people call it upfront pay.

“This is the amount we will pay the least to employees in the country. We are negotiating the minimum wage, not the living wage,” Ajayi said.

Kadri further disclosed that both government and the private sector face significant constraints in implementing the proposed N419,000 living wage request.

He mentioned that, for example, the private sector is struggling with economic challenges and inflation, which makes it impossible to pay such an amount.

He also explained that this is not the best time for organized labor to negotiate a new minimum wage. Instead, they should work with other stakeholders to strengthen the economy.

“Everyone in the tripartite – government, workers and the private sector – we all knew that we were operating in very difficult conditions. The government itself realized that it had limited payment options. The private sector is constrained by microeconomic, infrastructure and security challenges. Therefore we are forced to pay.

“Labour, for its part, is under intense pressure from its constituencies to demand higher pay as inflation has peaked and the operating environment is difficult.

“During the negotiations, we made it clear that this was not the best time to negotiate the minimum wage. It’s time for us to reach an agreement with the people behind the government and develop the economy in such a way that we bake a bigger cake and then we can share it,” the director general added.

However, he called on organized labor to reconsider the decision to launch a nationwide strike.

He noted that workers withdrawing from the discussion and declaring a strike will not help in this matter.

He added that it was unfortunate that the trade unionists rejected the offer of N60,000 from the government and the organized private sector, opting to call a nationwide strike.

“We cannot afford to paralyze the economy when all we had to do was keep building it. I think President Tinubu, when he became president, made it very clear that these are not going to be easy times and I think we have to tighten our belts to sustain an economy that we know has been severely damaged.

“Of course, the government, for its part, must show leadership, sensitivity, and common sense and judgment, as well as a sense of the opportunities of the period in which we find ourselves. So government spending, government choices about what to do, how much to spend, the cost of governance itself – all of this needs to be discussed.

“I think the real concern is the workforce because they seem to be bearing the brunt of it, but we had to be able to engage, get out of the process and call a strike. “I don’t think that’s how we’re going to solve this problem,” he added.