Wale Edun, the minister of finance and coordinating minister of the economy, says the minimum wage demanded by the labour unions is unaffordable across the board.
The minister made this known on Sunday during Channels Television’s ‘Sunday Politics’ programme.
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have consistently suggested that the federal government pay Nigerian workers a minimum salary of N615,500, citing high cost of living.
The organisations announced an indefinite strike on May 31 and planned to start on June 3 in response to the federal government’s unwillingness to raise the minimum wage from the proposed N60,000.
However, according to Edun, the labour union needs to take into account how affordable the suggested minimum wage is for both the public and private sectors, including state and municipal governments.
He said by law, the government is mandated to set a new wage scale every five years.
According to the minister, it is noteworthy that “it is a minimum wage, it is not a wage”.
“You are not setting a wage for federal government workers, for example. You’re setting a minimum figure that states, local governments, private sector, small businesses must pay, to the extent that they have the requisite number of workers,” Edun said.
“There can still be small scale businesses; they would have to pay that and it is a fixed figure, not a scale.
“So, there are elements of how we have set the minimum wage in the past, particularly what they call the consequential adjustments, which, given what labour is asking for today, would be unaffordable across the board.”
The minister said focus must be placed on the fact that once the minimum wage is enshrined in law, “everybody that falls into the category of having to pay the minimum wage must pay it”.
“And so therefore, the affordability has to be taken into account. And also, we probably have to also take into account the fact that there are other ways of buffeting and supporting the cost of living of workers, other than that particular wage scale,” Edun said.
Edun said with goodwill from all sides, the country would reach a conclusion that is beneficial to Nigerians and the economy.
