In a recent statement, Anambra State Governor Chukwuma Soludo expressed concern for President Bola Tinubu over the potential approval of an “unsustainable” minimum wage for Nigerian workers. Soludo, a former governor of the Central Bank of Nigeria (CBN), warned that many state governments and private sector organizations might struggle to meet the proposed ₦62,000 minimum wage by the Federal Government or the ₦250,000 demand from organized labor.

During a programme monitored by Covenant Nation, a Lagos-based church, to commemorate 2024 Democracy Day, Soludo cautioned that an unrealistic wage hike could lead to job losses and broader economic issues. Previously, Soludo and his peers in the Nigeria Governors’ Forum labelled Labour’s minimum wage demands as unsustainable.

In his Democracy Day address, President Tinubu reassured Labor that an executive bill for the new national minimum wage would soon be presented to the National Assembly. The President faces a decision between the ₦62,000 proposal from the government and private sector and the ₦250,000 demand from organized labor.

Soludo highlighted the financial constraints, noting that federal revenue is unlikely to exceed ₦17 trillion this year. He explained, “If you divide it among all Nigerians, it amounts to ₦6,160 per person per month. Even with the total ₦28.7 trillion budget, it only translates to ₦10,000 per capita.”

Emphasizing the burden on the private sector, Soludo mentioned that a significant portion of the workforce is employed by private entities, many of which cannot afford the proposed wages. He revealed that after speaking with nine entrepreneurs in Anambra, none could meet Labour’s proposed amount.

Addressing the broader implications, Soludo remarked, “The minimum wage issue is complex. Workers are right to ask, ‘What am I getting?’ However, we also need to consider what they do and what they need. Even if we paid ₦1 million, it might not be enough. But we must be realistic about MSMEs, schools, churches, and other organizations that also need to pay their workers.”

Soludo further noted, “I pity the President because if the consequences of an unsustainable wage come down, it will be on him. Whatever is negotiated, we will have to deal with the repercussions, and in a few months, we may need to reconvene to discuss the outcomes.”

It’s worth noting that Anambra is among the states that have yet to implement the ₦30,000 minimum wage approved in 2019, according to labour unions.