Prof. Itse Sagay (SAN), a distinguished legal expert and former chairman of the Presidential Advisory Committee Against Corruption (PACAC) during President Muhammadu Buhari's administration, recently expressed skepticism about the feasibility of the Joe Ajaero-led union's demand for a significantly higher minimum wage in Nigeria. In an interview with THE SUN, Sagay highlighted several key concerns regarding the proposed wage hike.
Sagay characterized the proposal for a N615,000 minimum wage as unrealistic and out of touch with Nigeria’s current economic conditions. He questioned how such a figure could be integrated into the nation's economic framework without creating disproportionate disparities between various levels of employment. "I don’t think the Joe Ajaero-led group is serious with such a demand," Sagay remarked. "If they are serious, they should not have proposed N615,000 as a 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."
Sagay emphasized that proposing such a high minimum wage would be impractical, especially given the financial constraints faced by both state governments and the private sector. He argued that even a more modest minimum wage of N100,000 would be challenging to implement. "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 stated.
Instead of focusing on unattainable wage levels, Sagay recommended that efforts be directed towards improving the overall economic conditions. He suggested that reducing the cost of living, such as lowering transportation and food expenses, would make existing wages more effective and sustainable. He warned that unrealistic wage demands could trigger hyperinflation and further economic instability, noting that some state governments are still struggling to pay even the current 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,” Sagay concluded.
Through his comments, Sagay underscored the need for practical and economically viable solutions to address wage issues in Nigeria, rather than pursuing demands that may lead to greater financial challenges for both the public and private sectors.