Kingsley Moghalu, a former deputy governor of the Central Bank of Nigeria (CBN), has opined that Nigeria can afford a minimum wage of N500,000 if the country has a vibrant production economy.
Gatekeepers News reports that due to the current lack of a production economy, he believes the government can only afford to pay between N75,000 to N100,000 as minimum wage.
Moghalu’s comments come as negotiations between organized labour and the government continue over the minimum wage.
While labour is demanding N494,000, the government has proposed N60,000, with the possibility of an increase.
A middle ground is being sought, and President Bola Tinubu has directed the Minister of Finance to work out the financial implications of the new minimum wage within 48 hours.
Posting on X, Moghalu wrote: “In the debates on the national wage in Nigeria we miss the fundamental point: there is little or no productivity in the economy. If we had a truly productive economy, there is no reason we can’t have the kind of minimum wage of 400 or 500K that labour wants. But we can’t, because the level of productivity in the economy cannot support it.
“Remember, the minimum wage is not just about government salaries. There are not more than 2, at most 3 million civil servants in Nigeria. It is even more about what is paid in the private sector, to household staff, etc.
“All of this is why, all things considered, including avoiding a minimum wage that multiplies already ravaging inflation (assuming such a wage can even be paid), I recommend a minimum wage of between N75,000 and N100,000.”
