Unrealistic wage may plunge Nigeria into recession, ex-SDP spokesman warns

A former National Publicity Secretary of the Social Democratic Party, Alfa Mohammed, on Tuesday appealed to organised labour to reconsider its demand for N250,000 as minimum wage, saying it may result in hyperinflation and recession.

Mohammed also raised concern that if Labour continues to threaten to paralyse commercial activities and shut down the national grid again despite warnings from state governors that it is unsustainable; it is capable of eroding the gains made by the current administration in the past one year.

The politician made the plea at a press conference organised by some elder statesmen under the aegis of Concerned Nigerian Patriots in Abuja.

PUNCH Online reported that the Nigeria Labour Congress and Trade Union Congress had embarked on a nationwide strike to demand an increased minimum wage for workers and the reversal of the recently increased electricity tariffs.

However, the industrial action was suspended after the labour leaders signed a commitment with the Federal Government to resume negotiations and develop a new minimum wage within a week.

Last Friday, the Tripartite Committee concluded its meetings as both the FG and the Organized Private Sector agreed on N62,000 while Labour pegged its demand to N250,000.

But Mohammed insisted that their demand was unrealistic and could lead to greater economic hardship for the masses.

He said, “The recent demand for an unrealistic minimum wage by the Nigeria Labour Congress and the Trade Union Congress poses a significant risk of plunging Nigeria into another recession, exacerbating the economic challenges that President Bola Ahmed Tinubu’s administration has been diligently working to overcome.

“Their insistence on a minimum wage initially set at ₦605,000, later ₦494,000, and now ₦250,000, is part of a broader strategy to force the government into adopting an economically unfeasible policy. Such a wage hike would likely lead to severe inflation, increased unemployment and greater economic hardship.

“Their plan includes a total shutdown of essential infrastructure under the guise of fighting for a living wage, potentially crippling the nation’s economy and disproportionately affecting the most vulnerable citizens. When a government is sabotaged, the masses suffer the consequences.

“We urge all Nigerians, especially our diligent workforce, to see through this veil of mischief.”