The federal government has been cautioned over the demand of workers in the country for a N200, 000 minimum wage.
The President of the Lagos Chamber of Commerce and Industry, LCCI, Micheal Olawale-Cole said the government should make some interventions to drive down the cost of essential commodities.
Nigerian workers under the aegis of Nigerian Labour Congress, NLC, and Trade Union Congress, TUC, had in view of the removal of petrol subsidy demanded the huge pay rise in order to be able to cope with the current economic situation.
On June 8 for instance, the TUC President, Festus Osifo and Secretary, Nuhu Toro issued a statement demanded a pay rise of N200, 000, among other requests for its members, which it said is for “immediate implementation”.
“For immediate implementation: Status quo ante of PMS pump price should be maintained while discussion continues. The minimum wage should be increased from the current N30,000 to N200,000 before the end of June 2023, with consequential adjustments on the cost of living allowance, COLA, like feeding, transport, housing, etc,” TUC said.
Reacting to the workers’ demand the LCCI urged the federal government not to succumb, saying paying the workers that amount will further drive up the cost of goods and services.
The Chamber also warned of the long term spiral effects on the economy of the workers are paid so much.
It said the burden will be too much on state governments who are still struggling to pay workers the N30,000 minimum wage.
Olawale-Cole insist that proposing N200,000 minimum wage for workers was not the best option as palliative for the fuel subsidy removal, saying many states were yet to comply with the N18,000 and N30,000 minimum wage.
He explained that pumping more money into circulation will further worsen inflation in the country, with its attendant long term spiral effects on the fragile economy.
According to him, “Let me just say on the issue of the proposed N200,000 minimum wage by the TUC. “The current N18,000 and N30,000 minimum wage, how many states are paying it regularly? Many states in Nigeria are owning their workers, except only the federal and some few states that have complied.
“So when you talk of it going to N200,000 I don’t think that should be the responsibility of the government giving cash to Nigerians, they can go into areas where people are operating with their monies.
“Because the value of money is what money can buy. If you give me N400,000, since things around are expensive, it will mean nothing to me. But if you put that money in those things that would bring cost of goods down, it will make sense. “
Recall that Senate President, Godswill Akpabio said last week that the federal government was already working on modalities to increase the minimum wage in the country.
