Governor Chukwuma Soludo of Anambra state has issued a warning to President Bola Tinubu about the potential dangers of approving an “unsustainable” minimum wage for workers in Nigeria.
During a special edition of The Platform, an event organized by The Covenant Nation to promote national development, Soludo provided an in-depth analysis of the minimum wage debate and its wider economic repercussions.
Soludo, who previously served as the Governor of the Central Bank of Nigeria expressed concerns that many state governments and entities within the Organised Private Sector might struggle to meet the proposed ₦62,000 minimum wage by the Federal Government and the ₦250,000 demanded by the Organised Labour.
He cautioned that implementing an unsustainable wage could result in job losses and exacerbate existing economic issues.
In a related context, President Tinubu, during his Democracy Day address, had assured the Labour that an executive bill on the new national minimum wage would soon be presented to the National Assembly for approval. This bill would address the ₦62,000 proposal from the government and private sector, as well as the ₦250,000 demand from the Organised Labour.
Soludo highlighted the financial impracticality of these proposals, stating, “If you share it to all Nigerians, it comes to ₦6,160 per person, per month, per capita. If you take even the total ₦28.7 trillion (budget) and share, it will come down to ₦10,000 per capita.”
He emphasized that the private sector, which employs a significant portion of the workforce, may not be able to afford the ₦62,000 proposed minimum wage. He mentioned discussions with nine entrepreneurs in Anambra state, none of whom could meet the proposed amount.
Reflecting on the broader implications, Soludo said, “The minimum wage thing, everybody is right. The worker is right to say, ‘What am I getting?’ Nobody is asking what does a worker do? We are not asking that question yet. All we are saying is: ‘How much does he need?’ He (the worker) is right, and for me, even if we pay N1 million, it’s not enough.
“But on the other hand, you have to come back to reality; talking about these MSMEs, the schools, churches, so on and so forth. You will have to pay your own driver. We are all in it. Whatever they agree, we will muddle through but may be after one year, we will need to meet to discuss the consequences.”
Expressing his concerns for President Tinubu, Soludo remarked, “I pity the President because it will all be on his head if the consequences come down, whatever it is, if whatever is negotiated is unsustainable or payable or whatever. Months to come, who will bear the responsibility? Not me.”
