Why fuel hike to fund new minimum wage will damage Nigeria's economy, CNG speaks

• The Coalition of Northern Groups has urged President Bola Tinubu’s administration not to increase fuel prices to fund the proposed new national minimum wage
• The group believes that a fuel price hike would overburden Nigerian workers and worsen economic hardships
• The CNG suggested alternative funding methods such as reducing wasteful expenditure, tackling corruption

The Coalition of Northern Groups (CNG) has issued a strong message to President Bola Tinubu’s administration, urging against any plans to increase fuel prices to fund the proposed new national minimum wage.

The group’s national coordinator, Comrade Jamilu Aliyu Charanchi, spoke to Legit.ng on Friday, July 19.

Northern youths led by Jamilu Aliyu Charanchi advises President Tinubu on current economic crisis Photo credit: Jamilu Aliyu Charanchi/Bola Tinubu
Source: Facebook

Recall that on Thursday, July 18, President Bola Ahmed Tinubu announced N70,000 as the new minimum wage.

Charanchi expressed its concerns, emphasizing the detrimental impact such a move would have on Nigerian workers and the broader population.

CNG opposes possible fuel price hike

Charanchi pointed out that raising the minimum wage amidst rising inflation, the devaluation of the naira, and ongoing economic crises will not solve the issues facing Nigerian workers.

The national coordinator expressed scepticism about the federal government’s plan to increase fuel prices to finance the wage hike.

He said:

"Although we acknowledge the federal government's effort to provide a decent living wage to Nigerian workers, we are doubtful about the plan to raise fuel prices to finance the new national minimum wage."

CNG speaks on fuel hike impact on Nigerian workers

The group argued that a hike in fuel prices would overburden Nigerian workers and exacerbate the economic challenges the general populace faces.

Charanchi remarked:

"Increasing fuel prices will not only place an additional burden on Nigerian workers but also further impoverish the population. "This move is both harsh and unwarranted, especially when most Nigerians are struggling to afford even a single decent meal a day."

CNG calls for humane alternatives

The CNG rejected the plan and urged the government to consider more humane and innovative alternatives.

The group suggested reducing wasteful expenditure, tackling corruption, and increasing taxes on luxury goods as potential solutions to fund the new minimum wage without increasing fuel prices.

He advised:

"We oppose this plan and urge the government to consider humane and innovative alternatives, such as cutting wasteful spending and the high costs of governance, addressing corruption, and raising taxes on luxury goods to fund the minimum wage."

The CNG concluded that any wage increase tied to a fuel price hike would be counterproductive.

He asserted:

"Any wage increase that hikes fuel price is self-defeating."

NLC reveals how govs stopped Tinubu from approving higher wage

In a related development, Legit.ng reported that the Nigeria Labour Congress (NLC) had accused the Nigerian Governors’ Forum of being responsible for the N70,000 new national minimum wage approved by President Bola Ahmed Tinubu on Thursday, July 18.

The NLC's Lagos council chairman, comrade Funmi Sessi, alleged that President Tinubu approved N70,000 as the minimum wage because the governors insisted on paying N50,000 during the negotiating period.

Source: Legit.ng