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The Registrar of the Chartered Institute of Finance and Control of Nigeria, Godwin Eohoi disclosed this while speaking to THE WHISTLER on the N1m minimum wage announced by the President NLC, comrade Joe Ajaero.
Earlier Ajaero said the N1m minimum wage would be a “child’s play” if the inflationary rate of the country continues to surge and the devaluation of the naira persists.Reacting to the NLC demand, Eohoi said the current economic and financial strength of the nation is too fragile, and most private sector, Small and Medium Enterprises, are struggling to stay afloat in business.
“The issue of a minimum wage of N1m is not realistic with the current economic situation, I believe that is a bargaining figure.
‘The NLC is concerned with civil servants who are at a federal, state and local level without considering the private sector is faced with challenges of running businesses while laying off staff as a result of economic hardships.
“The minimum wage negotiation is just for the civil servants who earn their salary from the taxpayer, and the majority of the taxpayers are in the private sector, yet both sectors spend funds in the same system influenced by naira devaluation.
“With the Labour demand, how will the private sector pay workers the same amount, when most businesses have folded up” Eohoi said.
When asked what amount is realistic to be adopted as a national minimum wage, Eohoi said a shift to N50,000 from the current N30,000 would be achievable.
He said, “The Labour union should not negotiate based on the civil servants alone, but a collective effort considering the strength of the private sector.
“Also, the government have to negotiate with the organised labour at the state and local level to reach an agreement achievable by all sectors of administration and employment in the country.”
Also, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Mr. Muda Yusuf warned that the real income of workers and citizens is massively eroded, and the poverty implications are high resulting in social instability in the nation.
He said the NLC demand could be a bargaining strategy as it is always better to start from a high position.
However, he said a reasonable amount can be decided as the three tiers of government are in a better position financially as a result of inflows from the Federation Account Allocation Committee (FAAC).
Findings revealed that monthly FAAC disbursement significantly increased after the removal of fuel subsidy.
He said, “The three tiers of government are in a better position now to propose something better than the N30,000 minimum wage because they have more revenue from the FAAC which parleys because of the current reforms.
“The tripartite committee has to look at the states’ capacity, what they earn and what is sustainable to be implemented and by the time all the key players get to a discussion, something much more realistic will be agreed upon, but the N1m is not realistic,” Yusuf said.
THE WHISTLER
