Kingsley Moghalu, a former deputy governor of the Central Bank of Nigeria (CBN), stated that if the nation has a thriving output sector, the Nigerian government can impose a minimum wage of N500,000.
However, Moghalu claimed that because there is no productive economy, the government can only afford to pay a new minimum wage of between N75,000 and N100,000.
This occurs in the midst of ongoing discussions on the necessity of raising the minimum wage between organised labour and the Nigerian government.
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Following a fruitful meeting with the Nigerian government regarding an increase in workers’ wages, labour called off its countrywide strike.
While organised labour wanted N494,000, the Nigerian government offered N60,000 with room for increase. However, as talks carry on, it appears that a compromise has been achieved.
President Bola Tinubu gave Finance Minister Wale Edun 48 hours to determine the financial effects of the increased minimum wage once the agreement was struck.
The former deputy governor of CBN, however, stated that Nigerian production could only support a minimum salary of N75,000 to N100,000.
Posting on X, Moghalu wrote: “In the debates on the national wage in Nigeria we miss the fundamental point: there is little or no productivity in the economy. If we had a truly productive economy, there is no reason we can’t have the kind of minimum wage of 400 or 500K that labour wants. But we can’t, because the level of productivity in the economy cannot support it.
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“Remember, the minimum wage is not just about government salaries. There are not more than 2, at most 3 million civil servants in Nigeria. It is even more about what is paid in the private sector, to household staff, etc.
“All of this is why, all things considered, including avoiding a minimum wage that multiplies already ravaging inflation (assuming such a wage can even be paid), I recommend a minimum wage of between N75,000 and N100,000.”
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