Ex-CBN Deputy Governor Reveals How Government Can Pay N500,000 As Minimum Wage

Former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has stated that the Nigerian Government could afford a ₦500,000 minimum wage.

He explained that the government could pay that amount if the country had an active production economy. However, due to the current lack of such an economy, he believes the government can realistically only pay between ₦75,000 to ₦100,000 as a new minimum wage.

This statement comes amid ongoing negotiations between organized labour and the Nigerian Government regarding an increase in the minimum wage. Organized labour had called off its nationwide strike after a productive meeting with the government on increasing workers’ pay.

The Nigerian Government initially proposed a ₦60,000 minimum wage with the possibility of an increase, while organized labour demanded ₦494,000. It is believed that a middle ground would be reached as negotiations continue.

Following the agreement, President Bola Tinubu instructed the Minister of Finance, Wale Edun, to determine the financial implications of the new minimum wage within 48 hours.

Moghalu, however, emphasized that Nigeria’s current level of production can only support a minimum wage of ₦75,000 to ₦100,000.

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.”

He also highlighted that 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 ₦75,000 and ₦100,000.”