Speaking to journalists in Abuja on Saturday, Prof. Ajumbe suggested that the Labour Unions should focus on advocating for the revival of critical infrastructure like the Ajaokuta Steel Industry, which could improve internally generated revenue, rather than making impractical demands. He argued that even the proposed N62,000 minimum wage by the Federal Government was made under duress, noting that some governments lack the revenue to meet this wage.
Ajumbe stated that the government should not be pressured into accepting demands it cannot fulfill, questioning how many states could afford to pay such wages given their IGR. He warned that using all funds for salaries would leave no resources for infrastructure or development, leading to higher inflation and job losses.
Ajumbe also pointed out that the price of goods and house rent would rise, and many civil servants would be forced to move to their villages. He questioned the impact on artisans not covered by the wage increase and suggested that the private sector might also struggle to pay it, potentially resulting in job losses.
Ajumbe urged the Labour Unions to focus on issues that would help the government reduce corruption. He also noted that both federal and state governments should not be pressured into accepting wage demands that they cannot sustain.
In his words: “If you use all the money for salary, then there will be no infrastructure or development, I was the Commissioner for IGR, and it will be difficult for states to pay 62,000 Naira, it will create higher inflation and job losses.
“The price of goods will go up, house rent will increase and civil servants will go to their villages, what about the artisans that are not covered, does it mean that the private sector will not pay it? It will lead to job loss which is not good. Let me ask the labour president how much he is paying his driver, gateman and cook.
“Labour should concentrate more on issues that will make the government cut down corruption.“CONTINUE FULL READING>>>>>
