FG Warns of Massive Sacking as Labour Rejects Minimum Wage Agreement

President Tinubu with a solider commander at his back

On Wednesday, the federal government chastised organized labor for failing to take into account the wider economic consequences of their demands for an unjustifiably higher national minimum wage.

The admonition was delivered by Mohammed Idris, Minister of Information and National Orientation. Idris warned that the N250,000 minimum salary proposed by labor may damage the economy, cause a mass layoff of workers, and endanger the wellbeing of Nigerians.

The labor unions, on the other hand, denied President Bola Tinubu's assertions that a deal had been struck on the new national minimum wage during his Democracy Day speech on Wednesday.

The Tripartite Committee on the National Minimum Wage had not established a consensus as of the end of negotiations on June 7, according to Prince Adewale Adeyanju, acting president of the Nigeria Labour Congress.


Adeyanju is speaking in place of NLC President Joe Ajaero, who is in Geneva, Switzerland, for a conference of the International Labour Organization.

After declaring that his administration would soon present an executive bill to the National Assembly to formalize the agreements struck in the minimum wage negotiations between labor, the private sector, the states, and the federal government, Tinubu infuriated the unions.

The Federal Government and the Organized Private Sector offered N62,000, but the unions insisted on a minimum pay of N250,000 throughout the weeks-long negotiations.

The state governors, however, declared that they would not be able to support minimum wages above N60,000.


The labor unions rejected the offers from the OPS and the federal government, stating that they would not discuss a salary they referred to as "starvation wage."

N62,000 is not deemed appropriate.

According to Chris Onyeka, the NLC's assistant general secretary, Labour would not accept the most recent offer of N62,000 or the N100,000 suggestion put up by certain people and experts.

Joe Ajaero, the President of the NLC, stated that the unions were waiting on the President to take Labour's suggestion into consideration.

Speaking on Wednesday at the commencement of the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja, the minister of information emphasized the need for a reasonable wage structure that covers workers' needs and prevents widespread layoffs.

Idris reaffirmed the government's commitment to reviewing the minimum wage but issued a warning against making demands that would cause the economy to falter.



"The Federal Government is not opposed to wage increases for Nigerian workers, as I have repeatedly stated. However, we continue to advocate for a realistic and sustainable wage system for workers - a wage system that will not undermine the economy, lead to mass layoffs, and jeopardize the welfare of approximately 200 million Nigerians," he said.

"We want the labor unions to know that wage increases won't be the only way that Nigerians will receive the relief they so richly deserve."


He emphasized the continuous attempts to lower living expenditures, including programs such as the Presidential Compressed Natural Gas program, which aims to cut transportation costs by half.

Idris pushed for wage rises, but she also emphasized the need for comprehensive relief measures that go beyond pay adjustments. She urged Labour to acknowledge the role that initiatives like the CNG initiative have in boosting residents' purchasing power.



Additionally, it will be an attempt to keep more money in Nigerians' pockets and to lower the cost of living. Programs like the Presidential CNG initiative are useful in this regard.

He asserted, "That program alone will cut transportation costs by as much as 50% by replacing or complementing gasoline usage with CNG."

The minister urged religious authorities to help spread the word about government programs and efforts.


Religious leaders

He emphasized how important it is for the clergy to spread the word about opportunities that are out there and the government's ongoing initiatives.

"As a government, we require your input, counsel, and support," Idris said.

"Most importantly, in order for you to assist us in sharing these with your congregations and the wider public, we need you to be aware of the efforts being made and the challenges being faced."



The minister emphasized the powerful platforms held by religious leaders, emphasizing their capacity to inform Nigerians about their rights, obligations, and the financial prospects afforded by the President's Renewed Hope Agenda initiatives.

He mentioned that the plan sought to improve infrastructure and transportation, foster agricultural and food security, bolster national security, and encourage economic recovery.

READ ALSO: Tinubu Orders Finance Minister to Unveil New Minimum Wage Blueprint in 48 Hours

"Education and consciousness are essential, and our religious leaders can help with this. President Bola Tinubu's "Renewed Hope Agenda" policies and programs are creating a wealth of economic prospects for Nigerians, and you have extremely powerful venues that can educate them about their rights and responsibilities," he said.

During his speech, Archbishop Leonard Kawas, the National President of the Charismatic Bishop Conference, emphasized the organization's steadfast support for Tinubu's administration and reaffirmed their dedication to working together to achieve the goals of the nation as a whole.


"There is still no agreement"

Adeyanju disagreed with Tinubu's claim that his administration engaged in sincere negotiations with Organized Labor on the new national minimum wage, saying that Tinubu had not acted in good faith or with open arms. This was their response to the President's nationwide broadcast.

"In this spirit, we have negotiated in good faith and with open arms with organized Labour on a new national minimum wage," Tinubu said in his broadcast. We are about to submit an executive measure to the National Assembly that would codify the agreements reached into law for the next five years or less.

"As a dictatorship administration would have done, we did not attempt to repress or crack down on the workers in response to labor's request for a national strike.

We opted for collaboration over confrontation.

Nobody was detained or intimidated. Rather, the leadership of the labor movement was asked to have a meal together and work toward a sincere settlement.



One of democracy's main characteristics is reasoned debate and morally sound compromise. These ideas will keep my policies and interactions with the various facets of our political economy vibrant.

However, Adeyanju refuted the President's claim in a statement, stating that he might have been duped by his advisors. Adeyanju also pointed out that two figures—N250,000 from Organized Labor and N62,000 from the government and OPS—were calculated and should have been given to Tinubu.

Anything to the contrary, the NLC official claims, is not only fabricated but would also not be approved by Labour.

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The government's offer of N62,000 was rejected by the congress, which stuck to its position of N250,000 as the minimum wage.

Part of the statement said, "The NLC would have expected that the President's advisors would have informed him that we did not reach any consensus with the employers and the Federal Government over the other components of the National Minimum Wage or the base amount for one.



"We have not received any convincing arguments to modify our demand, which is N250,000 only, which we believe to be a significant concession made by Nigerian workers during the three-way bargaining process.

"Thus, we are somewhat surprise by Mr. President's submission regarding a purported agreement. We think it's possible that he was duped into thinking there was a deal with the TUC and NLC.

"There was none, and in order to prevent confusion in the ongoing discussion about the national minimum wage, it is crucial that we make this clear to the President, Nigerians, and other national stakeholders right away."

Adeyanju claimed that during the minimum wage negotiations, security agencies intimidated the labor leaders.

While we were negotiating with the government, fully armed soldiers encircled us. Despite the administration's denials, recent remarks made by top officials confirmed our concerns and went against their claims.



He was positive, saying, "Yet we are confident that the President's democratic credentials will come to the fore in favor of Nigerian workers and masses."

The union claims that by rejecting advice from "those whose intentions were continuously focused on hurting Nigeria's poor and struggling workers," the President was able to show his love for the people and Nigerian workers on Democracy Day.

In an appeal, he said, "Mr. President should not permit these people and organizations to undermine his pledge to pull Nigerian laborers out of poverty.

"It is clear that the President's advisors misled him about the intimidation and harassment of trade union leaders.

It is crucial that Mr. President realizes that his operatives may have threatened us multiple times without getting his permission.



"Senior government officials have waged and continue to wage a campaign of media propaganda against the trade unions with the intention of intimidating and harassing us."

Regarding how long the Minimum Wage Act would remain in effect, the NLC observed that there was no consensus.

It's also critical that the president understands that the majority of his officers are working nonstop to appoint congressional and trade union leaders.

Although the President stated that the Minimum Wage Act would last five years or fewer, we never agreed on that length.

We also decided that the minimum wage should be set at a specific number and that inflation should be controlled at that level. This will help to clarify what should be included in the report.



We stress once more how difficult it will be for Nigerian laborers to accept any national minimum pay that is comparable to a living wage. We cannot continue to live in such poverty while working.

"We expect that the President's initiatives, which included promising Nigerian workers a Living Wage, will likewise be motivated by our pursuit of justice, equity, and fairness for all Nigerians. The labor movement stated, "This is an opportunity to demonstrate that he listens to Nigerians as he promised."

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