Nigeria’s private sector has thrown its weight behind the Federal Government’s plan to increase the national minimum wage to N60,000, a move that is expected to have a positive impact on the country’s economic sphere.
During a televised appearance on Channels Television this morning, Segun Ajayi-Kadri, the leader of the Manufacturing Association of Nigeria (MAN), shared his expertise, offering a glimpse into the nation’s economic potential.
In a morning interview on Channels Television, Segun Ajayi-Kadri, the director general of the Manufacturing Association of Nigeria, made a notable disclosure that is set to resonate throughout the industry.
The talks, he explained, revolve around setting a minimum wage standard, distinct from a living wage, which represents the absolute minimum required for workers’ well-being and decent living conditions.
Ajayi-Kadri stressed that the economic terrain is treacherous for both workers and private enterprises, making it an uphill battle to accommodate the wage expectations of labour unions.
He stated: “To start with, this is a very difficult time for anyone to negotiate minimum wage. From the perspective of government, labour and organized private sector, we operate in an environment where there is general acceptance of the fact that the macroeconomics are not right, even the global economy is experiencing a lot of shakeups and the aftermath of government necessary reforms.
“From the beginning of the negotiations of the minimum wage, it’s evident to the tripartite – that is the government, labour, and organized private sector – which we are going to operate in a difficult terrain.
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“Incidentally, the organized private sector and government have offered N60,000 as the minimum wage and I think it is very important for us to understand that what we are talking about is the minimum wage. That is what some people have called the walk-in wage. That is the amount we will pay the least workers in the country. It is the minimum wage we are negotiating, not a living wage.”
He further disclosed that both the government and the private sector face significant constraints in fulfilling the proposed N419,000 living wage request, noting that the private sector, for example, is dealing with economic challenges and inflation, making it impossible to pay such an amount.
He also explained that this is not the most appropriate time for organized labour to negotiate a new minimum wage. Instead, they should collaborate with other stakeholders to strengthen the economy.
“All of us in the tripartite— the government, the labour, and the private sector — we all knew that we were operating in a very difficult environment. The government itself realized that it had limited capacity to pay. The private sector is constrained by microeconomic, infrastructure and security challenges. So, we are also constrained to pay.
“Labour on its part, is under intense pressure from its constituencies to ask for a higher wage because inflation has hit the roof and the operating environment is tough.
“Throughout the negotiation process, we made it known that this is not the best time to negotiate minimum wage. This is the time for us to agree, queue behind the government, and grow the economy in such that we will bake a bigger cake and then we’ll be able to share,” Ajayi-Kadir added.
He appealed to the organised labour to reconsider its decision to embark on a nationwide strike, adding that the labour walking out of discussions and declaring strike would not help matters.
He added that it is unfortunate that labour rejected the N60,000 offer from the government and the organised private sector, choosing to declare a nationwide strike.
“We cannot afford to cripple the economy when all we needed to do was continue to build it. I think President Tinubu was very clear when he emerged as president that these are not going to be easy times and I think we needed to tighten our belts to deliver on economy that we know has been seriously battered.
“Of course, the government on its own side has to demonstrate leadership, sensitivity and sense of mind as well as the sense of occasion of the period that we are in. So, government expenditure, government choices of what needs to be done, how much to be spent, the cost of governance itself, all of it has to come to the table.
He suggested that Labour’s concern is that they seem to be bearing the bulk of the burden, but they needed to be able to participate and negotiate. However, he believed that abandoning the process and declaring a strike was not the solution to the problem.