Minimum wage increase may lead to inflation, job lose - Group

The North Central Citizens Council (NCCC), has expressed worry over the agitations of the Nigerian Labour Congress, NLC and the Trade Union Congress, TUC, for an increase in minimum wage, saying that their agitation may be counterproductive on the common Nigerian.

The group in a statement by its Coordinator, Comrade Mohammed Eneji in Abuja, said the increment may affect some States which they worried may lead to some States downsizing their workforce.

They explained that: "If these negotiations for increase in the minimum wage of workers is jacked up without considering the adverse effect it will have on the ordinary citizens of the country, especially those living in the rural areas, then the efforts will be counterproductive and useless.

"Many state governors are still battling to pay the 30,000 minimum wage as it was till date. How then do we think that the governments, both at State and local government levels will be able to pay the minimum wage of 60,000 and above?

"The labour movement is obviously not putting Nigeria and Nigerians first in this process of the negotiation and as such, NCCC is demanding that the labour reviews and considers the plight of the larger percentage of Nigerians who are not under the payroll of the government nor the private sector, as this percentage of Nigerians constitute the largest population of workforce in Nigeria compared to those under government who are less than 1% of the entire Nigerian population.

"We also demand that the Labour be flexible by looking at the bigger picture as this demand of theirs will further heighten the inflation rate in the country and also increase the unemployment rate. 

"As a result of the increase in the minimum wage, many multinationals and government agencies at state level May result into downsizing the personnel on their payroll due to inability to pay the new wage.

"The cumulative effect will exacerbate the problems instead of addressing it. The development expected by the states and local government will be in sharp decline when states make use 60 to 70% of revenue generated to pay salaries of workers while the infrastructure and the economy of such states is left in jeopardy".