PDP Chieftain Onuesoke calls for economic deflation, not wage increase

Sunny Onuesoke, a chieftain of the Peoples Democratic Party (PDP) in Delta State, asserts that Nigeria’s economic issues require deflation rather than an increase in the minimum wage.

Speaking in a phone interview, Onuesoke criticized the federal government’s and labour unions’ focus on wage hikes, arguing it will exacerbate economic problems.

Onuesoke stated that raising wages would not solve the economic crisis but would instead drive up the prices of goods and services.

He explained, “Nigerians are getting it wrong. What Nigeria needs is deflation. If you increase the salary to one million Naira today, the prices of goods and services will keep increasing.”

He emphasized that increasing the minimum wage will only lead to more currency in circulation, fueling inflation.

“The average person who is not in the civil service but produces food items will increase his produce prices,” he noted.

Onuesoke highlighted that only 14% of Nigeria’s workforce are civil servants, making them a small fraction of those providing services.

He argued that the private sector cannot afford such wage increases and stressed the need for a broader approach to economic stability.

He advocated for reducing the inflation rate so that even a worker earning N20,000 could live comfortably. Onuesoke urged the government to focus on building low-cost housing, subsidizing essential services, and implementing agricultural and housing programs.

“The people need social infrastructure that will deflate their hardships,” he said. He called for fixing Nigeria’s refineries and expanding agricultural production, criticizing the reliance on imported refined products despite Nigeria being a major oil producer.

The ongoing wage negotiation saw the federal government offer an increase of two thousand Naira above their initial N60,000 proposal, while labour unions reduced their demand from N494,000 to N250,000 per month. However, no agreement has been reached yet.