Minimum Wage Increase to N70,000: Not the Solution to Nigeria’s Economic Woes, Says Labour Party

In response to the recently approved minimum wage increase to N70,000 for Nigerian workers, Sadiq Atayese, the Chairman of the Labour Party (LP) in Oyo State, has voiced his concerns that this measure alone will not resolve the economic challenges currently afflicting the nation. Atayese made these remarks during an interview with the News Agency of Nigeria (NAN) in Ibadan, emphasizing that more comprehensive economic policies are needed to address the country's pressing issues.

Atayese argues that the core solution to Nigeria’s economic difficulties lies in the implementation of positive and effective economic policies by the government. He highlighted that one of the critical areas requiring attention is the exchange rate, which significantly influences the cost of fuel and, consequently, the fuel subsidy.

"Will this new minimum wage actually assuage the daily rising costs of foods and services? Can it bring a stable solution to the nation’s economic challenges? The answer is No," he stated emphatically. According to Atayese, merely increasing the minimum wage is insufficient to counteract the rising costs of living, as it does not tackle the root causes of economic instability.

Atayese pointed out that combating corruption should be a priority for the government. He noted that corruption, especially in high places, accounts for over 90% of corruption cases in Nigeria. Without addressing this pervasive issue, other economic measures, including wage increases, are likely to be ineffective.

"The government must be intentional in its efforts at fighting corruption to a standstill," he stressed. By eradicating corruption, the government can create a more conducive environment for sustainable economic growth and development.

Additionally, Atayese called for deliberate policies to boost agricultural development. He underscored the importance of securing effective farming practices, ensuring adequate funding for agriculture, and providing security for farmers. Addressing these issues could have a more substantial and lasting impact on the economy than simply raising the minimum wage.

The recent agreement between the Federal Government and labor unions on the new minimum wage of N70,000 came after extensive negotiations. Initially, the government proposed a wage of N60,000, which was later adjusted to N62,000. Meanwhile, labor unions initially demanded a substantial increase to N494,000 before lowering their request to N250,000.

Ultimately, the N70,000 figure was accepted by labor leaders, largely because of additional incentives attached to the offer. However, Atayese remains skeptical about the effectiveness of this wage increase in improving the standard of living for Nigerian workers.

Despite his criticisms, Atayese reaffirmed the Labour Party's commitment to the wellbeing of the people and the development of society. He asserted that the party would continue to advocate for policies that genuinely address the fundamental economic challenges facing the nation.

“Labour Party will continue to stand for the wellbeing of the people and development of the society,” he said. By focusing on sustainable economic policies and combating corruption, the Labour Party aims to create a more stable and prosperous Nigeria.