Bayo Onanuga
The Presidency has declared that the organized labor’s demand for a new minimum wage of N497,000 is unrealistic, urging labor unions to be more serious in their demands.
The Presidency emphasized that the primary consideration for determining the new minimum wage by the Tripartite Committee should be the availability of resources to pay the agreed amount.
In an interview with Vanguard in Abuja, Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, pointed out that both federal and state governments have excessively large workforces.
He recalled that labor initially demanded a minimum wage of N615,000, which was later reduced to N500,000 and then N497,000. Meanwhile, the government and the private sector raised their offer to N57,000 during the last Tripartite meeting.
When asked if the N497,000 wage demand by labor was outrageous, Onanuga affirmed that it was. He challenged labor leaders like Mr. Ajaero and TUC President Osifo to consider whether they could pay such amounts to their lowest-paid workers, such as drivers and cleaners.
He stated that the demand was unrealistic given the bloated civil service, which he described as a social service due to the lack of other employment opportunities.
Onanuga highlighted that the federal civil service comprises about 50,000 workers, excluding the police, army, and other agency employees.
He observed that many civil servants at the Federal Secretariat are not highly productive, yet labor expects the government to pay them N615,000.
He argued that current government spending on recurrent expenditure is already too high, and it is unlikely that any government tier would allocate all its funds to salaries, neglecting other responsibilities such as infrastructure, healthcare, and education.
He criticized the labor unions for their unrealistic and extravagant demands, noting that the President aims to establish a living wage rather than just a minimum wage. Onanuga mentioned that negotiations are ongoing, and a figure would be agreed upon and announced in the coming weeks.
He expressed concerns about the states’ ability to pay the new minimum wage, noting that some states struggled to pay the old minimum wage of N30,000. He cited Zamfara state as an example, which recently announced it would pay the N30,000 wage, indicating potential difficulties in meeting new wage demands.
Onanuga suggested that labor should focus on making essentials like housing, transportation, and food more affordable, which would improve the earning power without merely increasing wages. He argued that past wage increases have only led to more frustration among workers.
When asked about potential cabinet reshuffling as the government marks one year in office, Onanuga said there are no such plans currently.
He mentioned that instead of a lavish anniversary celebration, ministers were asked to present their scorecards, with some already having done so. He noted that the ministers have been in office for about nine months and the President wants to give them more time to prove their performance.
Onanuga assessed that many cabinet members have performed well, implementing the President’s 8-Point Agenda in their respective ministries.
When asked for his suggestion on a fair minimum wage, he proposed N70,000 to N80,000, but stressed that the final decision should be based on what the government can afford and sustain across all sectors.
Regarding labor’s claim that any amount less than N77,000 is a wage reduction, Onanuga clarified that the current minimum wage remains N30,000.
He explained that the wage award given recently is a temporary palliative, not a permanent increase, and the Tripartite Committee must consider what the government and private sector can realistically pay.
