Nigeria's economy will cripple with a N50k minimum wage - Former Senator, Olorunnimbe Farukanmi

A 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.

According to TheNation, the financial expert said 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.

His words: “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”

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: “with the large scale reduction in the prices of oil in the world market, the country’s revenue has reduced drastically. At a time when the economy should be strengthened with 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.