A Chieftain of the All Progressives Congress (APC) and second republic senator of the Federal Republic of Nigeria, Chief Olorunnimbe Farukanmi has reiterated that the N50,000 minimum wage being agitated for by Nigerian workers would have dire consequences on the Nigerian economy.
The APC chieftain reiterated that although workers are entitled to their wages having worked for it, the trade unions need to reconsider their request and look at the earnings of the Federal Government to consider if the government was capable of paying what they are agitating for.
He further reiterated that the new minimum wage being asked amounts to an increase of 250 percent as against the N18,000 currently being received by the average Nigerian worker as minimum wage.
The APC chieftain who also happens to be the Chairman, Elders Assembly of the APC in Ondo state said further;
“It is evidently clear that some of the various levels of governments in existence presently owe their workers over 10 months salary arrears.
It means that if some local and state governments are unable to meet up the N18,000 especially as sources of revenue generation are dwindling, the proposed N50,000 per month demanded by the labour force, if acceded can never be met by these present government”
The APC stalwart also said the negotiation on the demands of the labour unions for over N50,000 as the national minimum wage has been on for many years without any resolution because the resources from crude oil sales represent the main sources of revenue from which the federation account generates majority of its resources.
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He therefore reiterated that due to this fact, the new minimum wage of N50,000 would lead to a fresh round of economic recession within the country because it will inevitably lead to a general increase in the prices of all commodities including basic food items.
“The labour Unions should ensure that this nation does not slip into recession again since every Nigerian is aware of the fact that Nigeria derives majority of its revenue from oil and gas, but with the large scale reduction in the prices of oil in the world market, the country’s revenue has reduced drastically.” He continued further stressing that;
“At a time when the economy should be strengthened with a stable naira as against encouraging further inflation, to embark on a stable naira as against encouraging further inflation, to embark on a 250 per cent wage increase will be enormously detrimental to the successful growth of the economy.”