Anambra State Governor, Charles Soludo, has cautioned President Bola Tinubu against approving what he deems an unsustainable minimum wage. During his Democracy Day address, President Tinubu announced plans to submit an executive bill on a new national minimum wage for workers to the National Assembly. The proposals include ₦62,000 from the government and private sector, while the Organised Labour demands ₦250,000.
Speaking at ‘The Platform Nigeria’, a programme by Covenant Nation to mark Democracy Day 2024, Soludo expressed concerns over the potential economic fallout from an unsustainable wage increase. He warned that such a move could lead to job losses and exacerbate economic challenges, citing that the Federal Government’s revenue distribution per capita is insufficient to support the proposed wages.
Soludo highlighted the disparity between government proposals and private sector capabilities, noting that many businesses cannot afford the proposed ₦62,000 minimum wage. He referenced discussions with entrepreneurs who affirmed their inability to meet the proposed wage increase, aligning with the views of the Nigeria Governors’ Forum, which also considers the Labour’s demands unsustainable.