Navigating Financial Realities: Adviser Debunks Viability of N100,000 Minimum Wage

President Bola Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, has cast doubt on the feasibility of implementing a new minimum wage of N100,000. In a candid interview on Arise TV, Onanuga emphasized the financial challenges facing both federal and state governments.

Onanuga acknowledged the difficulties state governors currently face in meeting the present minimum wage, with only 10 out of 36 states able to fully comply. He pointed out that, even when the wage was increased to N30,000 under President Buhari, 26 state governments struggled to pay, citing ongoing financial constraints.

Exploring the financial landscape, Onanuga highlighted the low revenue, substantial domestic and foreign debt, and the significant debt repayment burden consuming 97% of the country’s revenue. He underlined the government’s efforts to alleviate financial pressure, such as removing subsidies, with the hope of reducing strain on national finances.

Cautiously analyzing the budget, Onanuga revealed a projected deficit of about N6 trillion, contrasting with the N14 trillion initially planned for 2023 by the Buhari government. The adviser painted a comprehensive picture of Nigeria’s financial challenges, questioning the practicality of a substantial minimum wage increase in the current economic climate.

As the debate on minimum wage continues, Onanuga’s insights provide a sobering perspective on the intricate financial intricacies that shape such decisions, prompting a closer examination of the nation’s economic landscape.

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