Former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has asserted that Nigeria’s current productivity level cannot support the ₦494,000 minimum wage demanded by Organized Labour.
In a post on X (formerly Twitter) on Tuesday, following the Organized Labour’s decision to relax its strike, Moghalu recommended a more feasible wage range of ₦75,000 to ₦100,000.
“In the debates on national wages 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,” he stated.
“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.”
Moghalu added, “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.”
