Business

Can the FGN afford new minimum wage? – By Kalu Aja

The Labour Unions and the Federal Government in Nigeria (FGN) are engaged in a passionate debate and negotiations as regards an increase in the minimum wage in Nigeria


I doubt you can find anyone who will argue that Nigerian workers do not deserve a wage hike to keep pace with the double-digit inflation currently at 33.69% for April. The problem is how to pay for this wage hike. Keep in mind that if the minimum wage goes up, pension obligations and other allowances also go up


The FGN is proposing to pay N54,000 a month as minimum wage, an almost 80% jump in the wage