Atedo Peterside, founder of Stanbic IBTC Bank Plc, has decried government’s spending as a major obstacle in the minimum wage negotiations between the government and labor unions.
According to him, the government’s “reckless” spending habits have created an unrealistic perception of its financial health.
“The Nigerian minimum wage negotiations were destined to be unnecessarily difficult because the federal government poisoned the well for responsible negotiations by approving an irresponsible N90 billion for legislators and others, creating the false impression that they were awash in cash,” Peterside wrote on X.
Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), declared indefinite strike action after their N494,000 minimum wage request was rejected by the federal government, following the May 31 deadline they gave.
During a meeting held on Tuesday, May 28, 2024, representatives from the government and organised private sector again proposed doubling the existing minimum wage to N60,000 per month, countering The NLC and TUC’s demand.
The labour unions, however, walked out of the meeting to conduct further consultations before reaffirming their demand.
The government criticised the linking of the wage negotiations to electricity tariff hikes, stating that the proposed N60,000 wage is designed to prevent further job losses, especially in light of ongoing business closures and economic challenges, and , deeming it unfair to the negotiating parties.
Efforts to resume negotiations led to a meeting scheduled for Friday, June 31, 2024.