June 13, 2024

Soludo warns Tinubu against approving ‘unsustainable’ minimum wage

Soludo warns Tinubu against approving ‘unsustainable’ minimum wage

Governor Chukwuma Soludo of Anambra state has warned President Bola Tinubu against approving “unsustainable” minimum wage for workers in the country.

Speaking on Wednesday at a special edition of The Platform, an event organized by The Covenant Nation to promote national development, Soludo delved into the complexities of the minimum wage debate and its broader economic implications.

The former Governor of the Central Bank of Nigeria (CBN) warned that not all state governments and the Organised Private Sector can pay the ₦62,000 being proposed by the Federal Government and the ₦250,000 demand of the Organised Labour.

Governor Soludo cautioned that adopting an unsustainable wage could lead to job losses and further economic challenges.

Recall in his Democracy Day address on Wednesday, Tinubu assured Labour that an executive bill on the new national minimum wage for workers would soon be sent to the National Assembly for passage.

The President would make a decision on the ₦62,000 proposal of the government and private sector side; and the ₦250,000 demand of the Organised Labour.

“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 said.

He argued that the private sector employs a huge percentage of the total workforce in the country and not all of them can pay the ₦62,000 proposed by the Federal Government.

Soludo said he spoke with nine entrepreneurs in his state and none of them could pay the proposed amount by Labour.

The Anambra governor 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.”

“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.”

Vanguard News