Soludo Warns Tinubu Against Approving Unsustainable Minimum Wage

Anambra State Governor, Chukwuma Soludo, has expressed concern over President Bola Tinubu approving an “unsustainable” minimum wage for workers in Nigeria. Soludo warned that such a move could lead to significant job losses and broader economic difficulties.

Speaking at The Platform Nigeria, an event by Covenant Nation in Lagos to commemorate Democracy Day 2024, Soludo cautioned that not all state governments and the Organised Private Sector could afford the ₦62,000 proposed by the Federal Government or the ₦250,000 demanded by the Organised Labour.

Soludo highlighted the potential economic fallout of an unsustainable wage, predicting job losses and increased financial strain on the nation. He noted that the Nigeria Governors’ Forum, which includes Soludo and 35 other governors, had previously labeled Labour’s wage demands as unsustainable.

In his Democracy Day address, President Tinubu reassured Labour that an executive bill on a new national minimum wage would soon be sent to the National Assembly. This bill would address both the ₦62,000 proposal from the government and private sector and the ₦250,000 demand from Organised Labour.

Soludo raised concerns about the Federal Government’s revenue, estimating it would not exceed ₦17 trillion this year. He emphasized the disparity between the proposed wages and the economic realities, noting that the private sector, which employs a significant portion of the workforce, would struggle to meet these demands.

Drawing from discussions with entrepreneurs in his state, Soludo revealed that none could afford the proposed wages. He acknowledged the legitimacy of workers’ demands for fair wages but stressed the importance of balancing these demands with economic realities.

“The minimum wage issue is complex. Workers are right to ask for more, but we must also consider what is feasible for employers, especially in sectors like MSMEs, schools, and churches,” Soludo stated. He warned that an unsustainable wage agreement could lead to negative consequences, ultimately falling on the President’s shoulders.

“I pity the President because if the consequences arise from an unsustainable wage agreement, he will bear the responsibility,” Soludo concluded.