The Senate President, Godswill Akpabio, expressed concerns that the National Minimum Wage of N494,000 demanded by organized labor could lead to widespread layoffs in the private sector if implemented.
Akpabio made these remarks on Sunday during the opening session of an emergency meeting with the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) at the National Assembly complex in Abuja. The meeting, convened by the leaders of both the Senate and the House of Representatives, took place just a day before the two labor unions were set to begin an indefinite strike over the proposed minimum wage.
In his address, Akpabio cautioned labor leaders about the potential negative consequences of their wage demands, suggesting that many private companies might not be able to afford the proposed minimum wage, which could result in mass layoffs.
He emphasized the need to consider the broader impact of their demands on employment levels within the private sector.
“We must be mindful of collateral damage,” Akpabio stated. “I don’t want us to, in the course of trying to arrive at a minimum wage, end up with serious issues of unemployment because if we set this wage, we will expect the private sector to also comply. If they cannot afford it, the next step will be layoffs.”
Akpabio assured the labor leaders that any agreement reached between the government and the unions would prioritize the interests of Nigerians. He highlighted the significance of the meeting, describing it as a major step in the right direction. He also acknowledged that all participants, including government officials, have a personal stake in the outcome as they too are affected by labor issues.
“We are all concerned,” Akpabio noted. “We are in the same shoes, and we will be very glad to have something that is workable.”
The Senate President assured that both the federal government and the leadership of the National Assembly would seriously consider the unions’ demands. He called for a closed session to discuss the issues in detail, promising that the media would be briefed on the outcome afterwards.
On the labor side, TUC President Festus Osifo described the current living conditions for Nigerian workers as unbearable, stating that the situation has worsened since President Bola Tinubu took office.
Osifo highlighted that many Nigerians struggle to afford public transportation and other essentials. NLC President Joe Ajaero echoed these sentiments, emphasizing that their demand for a higher minimum wage is aimed at improving the lives of Nigerian workers.
