Prof. Itse Sagay (SAN), a legal expert and former chairman of the Presidential Advisory Committee Against Corruption (PACAC) under President Muhammadu Buhari, expressed doubts about the seriousness of the Joe Ajaero-led group's demand for a higher minimum wage, in an interview with THE SUN.
He stated that proposing a minimum wage of N615,000 was unrealistic, questioning how such a figure would fit into Nigeria’s economic context. Sagay suggested that this demand would create an impractical wage gap between lower-level and higher-ranking employees.
He said, “I don’t think the Joe Ajaero-led group is serious with such demand. If they are serious they should not have proposed N615,000 as minimum wage, which was the first figure that they mentioned. So, the cleaner in an office will be earning N615,000, what will the permanent secretary earn? Maybe N10 million. People should be serious when they are holding important positions. Honestly, given Nigeria’s peculiar economic situation, I don’t see a minimum wage up to N100,000. The reason is because if they institute that N100,000, the states cannot pay, and the private sector cannot pay.”
He argued that a minimum wage of N100,000 was unlikely to be feasible, as both state governments and the private sector would struggle to accommodate it.
Sagay recommended focusing on improving economic conditions to make existing wages more effective rather than setting an unattainable wage level. He stressed that measures to lower the cost of living, such as reducing transportation and food expenses, would be more beneficial. He warned that unrealistic wage demands could lead to hyperinflation and economic damage, pointing out that some state governments are still paying below the proposed minimum wage.
“You will see that if N100,000 is imposed, state governments will not pay. Up till today I understand that there are state governments that are still paying N18,000, they are not even paying N30,000. So, what is the point? People should be realistic. Government should be asked to improve conditions of living, bring down prices so that whatever you are paid will go far. That should be the approach,” he said.