‘N50,000 minimum wage will cripple Nigeria economy’

Second republic senator, Chief Olorunnimbe Farukanmi on Saturday said the N50,000 minimum wage being agitated by Nigerian workers would have dire consequences on the nation’s economy.

The financial expert said even though labourers are entitled to their wages,but expressed the need for trade unions to consider and look at various sources of revenue accurable to their employers in order to asses the reality of the wages from which their salaries are paid.

The former lawmaker observed that the minimum wage in the country being paid by every employer of labour was expected to be N18,000, but the labour unions have been asking for N50,000 minimum,which he said would be 250 per cent increment.

Farukanmi, who is the Chairman, Elders Assembly of the All Progressives Congress(APC) in Ondo state said “It is evidently clear that some of the various levels of governments in existence are presently owing their workers over 10 months salary arrears.

“It means that if some local and state governments are unable to meet up the N18,000 especially as sources of revenue generation are dwindling,the proposed N50,000 per month demanded by the labour force,if acceded can never be met by these present government”

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The APC stalwart said the negotiation on the demands of the labour unions for over N50,000 as the national minimum wage has been on for many years without any resolution.

According to him, the resources from crude oil sales represent the main sources of revenue from which the federation account generates majority of its resources.

The elder statesman warned that new minimum wage of N50,000 would cause another economic recession in the country,as it would lead to general increase in the prices of all commodities and food stuff.

He said” The labour Unions should ensure that this nation does not slip into recession again since every Nigerian is aware of the fact that Nigeria derives majority of its revenue from oil and gas,but with the large scale reduction in the prices of oil in the world market,the country’s revenue has reduced drastically.

Farukanmi believed this is a period when to provide an enabling environment for genuine investors and honest consumers to work together for the viability of the economy.

“At a time when the economy should be strengthened with a stable naira as against encouraging further inflation,to embark on a stable naira as against encouraging further inflation,to embark on a 250 per cent wage increase will be enormously detrimental to the successful growth of the economy” The APC stalwart stressed.