MAN DG Reveals Private Sector’s Stance on FG’s ₦60,000 Minimum Wage Offer

Ajayi Kadri, Director-General of the Manufacturing Association of Nigeria (MAN), has confirmed that the organized private sector has accepted the Federal Government’s proposal for a new minimum wage of ₦60,000.

Kadri disclosed this during an interview with Channels TV in Abuja on Saturday.

He clarified that ongoing negotiations between the government, the private sector, and labor are focused on establishing a minimum wage rather than a living wage, which represents the lowest amount that can be paid to any worker in the country.

He emphasized that both labor and private businesses are facing significant economic challenges, making it extremely difficult to meet the wage demands put forward by labor unions.

Kadri stated, “This is a very difficult time for anyone to negotiate a minimum wage. From the perspective of government, labor, and the organized private sector, we operate in an environment where there is general acceptance of the fact that the macroeconomics are not right. Even the global economy is experiencing a lot of shakeups and the aftermath of government necessary reforms.

“From the beginning of the negotiations, it was evident to the tripartite—government, labor, and organized private sector—that we are going to operate in a difficult terrain.

“Incidentally, the organized private sector and government have offered ₦60,000 as the minimum wage. It is important to understand that what we are talking about is the minimum wage, the amount we will pay the least workers in the country, not a living wage,” Kadri explained.

Kadri further disclosed that both the government and the private sector face significant constraints in fulfilling the proposed ₦419,000 living wage request. He mentioned that the private sector is dealing with economic challenges and inflation, making it impossible to pay such an amount.

He also explained that this is not the most appropriate time for organized labor to negotiate a new minimum wage. Instead, they should collaborate with other stakeholders to strengthen the economy.

“All of us in the tripartite—government, labor, and the private sector—know that we are operating in a very difficult environment. The government itself realizes that it has limited capacity to pay. The private sector is constrained by microeconomic, infrastructure, and security challenges. So, we are also constrained to pay.

“Labor, on its part, is under intense pressure from its constituencies to ask for a higher wage because inflation has hit the roof and the operating environment is tough.

“Throughout the negotiation process, we made it known that this is not the best time to negotiate minimum wage. This is the time for us to agree, support the government, and grow the economy so that we can have more to share,” Kadri added.

He appealed to the organized labor to reconsider its decision to embark on a nationwide strike, noting that walking out of discussions and declaring a strike would not help matters.

“It is unfortunate that labor rejected the ₦60,000 offer from the government and the organized private sector, choosing to declare a nationwide strike. We cannot afford to cripple the economy when all we need to do is continue to build it.

“I think President Tinubu was very clear when he emerged as president that these are not going to be easy times, and we need to tighten our belts to deliver on an economy that has been seriously battered,” Kadri said on Channels Television’s Sunrise program on Saturday.

“The government must demonstrate leadership, sensitivity, and a sense of occasion for the period we are in. Government expenditure, choices, and the cost of governance all need to be scrutinized.

“I think what labor is worried about is bearing the brunt of these challenges. However, walking out on the process and declaring a strike is not the solution,” he added.

On Friday, organized labor declared a nationwide indefinite strike over the Federal Government’s refusal to raise the proposed minimum wage from ₦60,000. They claimed the strike followed the expiration of an earlier request to the Federal Government to conclude all negotiations for a new minimum wage before the end of May.