President Bola Tinubu has said that economic reforms would continue despite increasing hardships that have fuelled public anger, and promised to send an executive bill to parliament soon to set a new minimum wage. Tinubu, who came to power a year ago, removed a decades-old petrol subsidy that kept prices artificially low and devalued the currency, sending inflation soaring to 33.69% in April, its highest level in nearly three decades and eroding incomes. Meanwhile, Mohammed Idris, minister of Information and National Orientation, has urged Organised Labour to settle for a national minimum wage that will not undermine the national economy and lead to mass retrenchment of workers. Idris who appealed while declaring open the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja on Wednesday, emphasised the need for a realistic and sustainable wage system that balances workers’ needs with the country’s economic realities. He acknowledged the government’s commitment to reviewing the minimum wage but cautioned against demands that could harm the economy. Idris highlighted the government’s efforts to reduce the cost of living and increase Nigerians’ purchasing power through programs like the Presidential CNG initiative, which aims to cut transportation costs by 50%.
He said:“as I have repeatedly said, the Federal Government is not opposed to the increase of wages for Nigerian Workers but we keep on advocating for a realistic and sustainable wage system for the workers – a wage system that will not undermine the economy, lead to mass retrenchment of workers and jeopardise the welfare of about 200 million Nigerians. We want the Labour Unions to understand that the relief that Nigerians are expecting, and that they fully deserve, will not come only in the form of an increase in wages.It will also come as efforts to reduce the cost of living a nd to ensure that more money stays in the pockets of Nigerians. And this is where programs like the Presidential CNG initiative come in. By replacing or complementing petrol usage with CNG, that program alone will cut transportation costs by as much as 50 percent.”
The minister appealed to the clergy to support President Bola Ahmed Tinubu’s vision for Nigeria’s renaissance and to pray for wisdom and guidance as the country navigates its current challenges. In a television broadcast to mark Democracy Day, Tinubu acknowledged hardships caused by the reforms, which also include higher interest rates and the partial removal of electricity, but he said this would create a stronger foundation for future growth. “Our economy has been in desperate need of reform for decades. It has been unbalanced because it was built on the flawed foundation of over-reliance on revenues from the exploitation of oil,” Tinubu said. “As we continue to reform the economy, I shall always listen to the people and will never turn my back on you.”
Nigeria is grappling with the worst cost of living crisis in decades and labour unions last week suspended a strike called to pressure the government to agree a new monthly minimum wage. The government has offered to double the minimum wage to N62,000 a month against labour demands of N250,000, and Tinubu said his government had negotiated in good faith. The last minimum wage was set in 2019. “We shall soon send an executive bill to the National Assembly to enshrine what has been agreed upon as part of our law for the next five years or less,” Tinubu said. He did not say whether the bill would contain the government minimum wage proposal or a new figure. Labour union leaders have said they would wait to hear back from Tinubu before deciding on next steps.
