The presidency has said that acceding to the organised Labour’s demand of N494,000 minimum wage will cripple the country’s economy.

Ajuri Ngelale, presidential spokesperson, who said this while featuring on TVC’s ‘Politics, said the consequences of allowing Labour to have their way will not be in the interest of the country.

The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) embarked on an indefinite nationwide strike over Federal Government’s failure to accept the new minimum wage.

While the labour unions have pegged their demand on N494,000, the Federal Government offered N60, 000.

Speaking on the development, Ngelale said many small businesses will close shop if the Federal Government and the Organised Private Sector (OPS) where to pay what Labour is asking for.

“I want to be very clear about what the consequences would be if organised labour had its way. Right now, there is this notion out there that the minimum wage conversation in the country is simply almost a conversation between a federal executive administration and organised labour about a new minimum wage for the federal civil service. That is not what we’re talking about.

“We’re talking about a new national minimum wage for every Nigerian citizen, both within the formal economy as well as the informal economy.

“This has ramifications. Essentially, we’re moving from the current minimum wage where it is to, if labour got its way, something north of N500,000 per month; you’re looking at almost 20 times, right?

“So the impact that would now have on the citizens of the country, we’re not talking about government now, we’re talking about our people, if you’re thinking of a shop that is dealing in chinchin and bakery and these kinds of goods and services.

“The idea that you are going to mandate them to pay 20 times whatever it is they’re paying their staff within that small business, you know that you are essentially mandating the closure of that business, and you are literally, indirectly sacking the entire set of people who happen to be working there because that business is closing because they cannot live up to the minimum wages that organised Labour is asking for,” he said.