The Director-General of the Manufacturing Association of Nigeria, Ajayi Kadri, confirmed that the organized private sector supports the Federal Government’s proposal to set the new minimum wage at N60,000. This announcement came during an interview on Channels TV, where Kadri discussed the ongoing negotiations between the government, private sector, and labor unions.
The discussion is centered on establishing a minimum wage, which Kadri differentiated from a living wage, emphasizing the goal to determine the lowest acceptable pay for workers across Nigeria. “This is a very difficult time for anyone to negotiate minimum wage,” Kadri remarked, pointing out the complex economic backdrop marked by national challenges and global economic instabilities.
He explained that the tripartite negotiations involving the government, labor, and the private sector had always recognized the difficult economic terrain. The decision to propose N60,000, according to Kadri, reflects a balanced approach to the wage issue, considering the economic realities faced by private businesses and the government. This amount, referred to as the ‘walk-in wage’, represents the base level pay that employers agree to offer the least paid workers in the country.
Despite this agreement, the negotiations have faced hurdles, particularly regarding the labor unions’ demand for a N419,000 living wage, which Kadri described as unfeasible under the current economic circumstances. With the private sector battling inflation and other financial challenges, he argued that it was nearly impossible for businesses to meet such high wage demands.
Kadri expressed concern over the timing of the wage negotiations, suggesting that organized labor should focus more on collaborating with other stakeholders to strengthen the economy rather than pushing for a new minimum wage under the present conditions. “We are all operating in a very difficult environment, with limited capacity to pay,” he said.
The Director-General also addressed the decision by labor to declare a nationwide strike after rejecting the N60,000 offer, describing it as an unfortunate move that could harm the economy at a time when collective efforts should be focused on recovery. “It is unfortunate that labor rejected the N60,000 offer and chose to declare a nationwide strike. We cannot afford to cripple the economy when we need to build it,” Kadri explained.
President Tinubu has echoed similar sentiments, emphasizing the need for austerity to recover an economy that he described as “seriously battered.” Kadri appealed to the government to show leadership and sensitivity in handling this issue, advocating for careful scrutiny of government expenditures and decision-making processes to align with the economic realities of the nation.
Kadri concluded by urging labor to reconsider its approach to the wage dispute, emphasizing that walking out and striking would not resolve the underlying issues. “Labour feels the brunt of the current situation, but walking out on the process and declaring a strike will not solve the issue,” he stated.
