New Minimum Wage May Lead to Lay Off -Ngige

President Buhari and DrPresident Muhammadu Buhari and Minister of Labour and Employment, Dr. Ngige
  • New Minimum Wage May Lead to Lay Off -Ngige

Dr Chris Ngige, the Minister of Labour and Employment, has said the new minimum wage would increase government wage bill by N580 billion, an amount that could force the government to lay off in an effort to meet payments.

The minister told Mr Joe Ajaero, the leader of the United Labour Congress when he paid a courtesy visit to his office in Abuja.

Ngige pleaded with Mr. Ajaero to accept the consequential adjustment from levels 7 to 17, saying the government was avoiding a situation where it would have to lay off workers.

Mr. Joe Ajaero, however, appealed for the payment of the new minimum wage, stressing that the private sector should also be made to pay the new minimum wage. According to him, some are still paying N15,000 and even N10,000.

President Muhammadu Buhari signed the new minimum wage into law on April 18.

Since then the government has been looking for a way to delay paying the full amount despite states like Kaduna already paying the new minimum wage.

The minister also disclosed that the Federal Government has paid about N500 billion to workers, including the Academic Staff Union of Universities.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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