The organized private sector supports the £60,000 minimum wage proposal

The Director General of the Manufacturers Association of Nigeria, Ajayi Kadri, on Saturday confirmed that the organized private sector had accepted the federal government’s proposal for a new minimum wage of N60,000.

In an interview with Channels TV, Kadri explained that current negotiations between the government, the private sector and workers are focused on setting a minimum wage, not a living wage – the lowest amount that can be paid to any worker in the country.

“This is a very difficult time for anyone to negotiate the minimum wage. Government, labor and the organized private sector operate in an environment where the macroeconomics are not sound and even the global economy is experiencing shocks,” Kadri said.

He stressed that both workers and private companies face serious economic challenges, which complicates their ability to meet trade union wage demands.

“From the beginning of the negotiations, it was clear to the tripartite organization – the government, workers and the organized private sector – that we would be operating in difficult terrain. The organized private sector and government offered N60,000 as minimum wage. Some people call it the entry wage, which is the amount we will pay the smallest number of workers in the country,” Kadri said.

Kadri further noted that the government and the private sector are facing significant constraints in implementing the proposed living wage request of N419,000. He stressed that the private sector, grappling with economic challenges and inflation, has no capacity to pay such amount .

“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. We all operate in very difficult conditions, with limited ability to pay,” he added.

Kadri appealed to organized trade unionists to reconsider the decision to launch a nationwide strike, arguing that such action would not solve existing problems.

“It is unfortunate that the workers rejected the offer of N60,000 and decided to declare a nationwide strike. We cannot afford to paralyze the economy when we need to build it. President Tinubu has made it clear that these are not easy times and we must tighten our belts to repair an economy that has been severely damaged,” he said.

Kadri also called on the government to show leadership and sensitivity, stating that the government’s spending and choices need to be carefully scrutinized.

“The Labor Party feels the burden of the current situation, but abandoning the process and calling a strike will not solve the problem,” he concluded.

On Friday, organized labor announced an indefinite nationwide strike over the federal government’s refusal to increase its proposed minimum wage from £60,000. The strike follows the expiration of an earlier request to end all negotiations on a new minimum wage by the end of May.