The governors of Nigeria’s 36 states have rejected the Government‘s proposal for a N60,000 minimum wage, deeming it unsustainable.
The Nigeria Governors’ Forum (NGF) argued that such a high minimum wage would force many states to spend all their Federation Account Allocation Committee (FAAC) funds on salaries, leaving nothing for development.
The acting Director of Media and Public Affairs for the Nigeria Governors’ Forum (NGF), Hajiya Halimah Salihu Ahmed, issued a statement on Friday detailing the forum’s stand on the N60,000 minimum wage.
They warned that some states might need to borrow money monthly to pay workers, which they believe is not in the country’s collective interest, including that of the workers themselves.
The NGF acknowledged the need for a new minimum wage and expressed sympathy for labour unions’ demands for higher wages.
However, they stressed that any agreement must be sustainable and realistic, taking into account consequential adjustments for all employee levels, including pensioners.
They urged all parties to consider socio-economic variables and strive for an agreement that is fair to all societal segments.
The statement reads:
“The Nigeria Governors’ Forum (NGF) agrees that a new minimum wage is due. The Forum also sympathises with labour unions in their push for higher wages.
“However, the Forum urges all parties to consider the fact that the minimum wage negotiations also involve consequential adjustments across all cadres, including pensioners.
“The NGF cautions parties in this important discussion to look beyond just signing a document for the sake of it; any agreement to be signed should be sustainable and realistic.
“All things considered, the NGF holds that the N60,000 minimum wage proposal is not sustainable and can not fly. It will simply mean that many states will spend all their FAAC allocations on just paying salaries with nothing left for development purposes.
“A few states will end up borrowing to pay workers every month. We do not think this will be in the collective interest of the country, including workers.
“We appeal that all parties involved, especially the labour unions, consider all the socioeconomic variables and settle for an agreement that is sustainable, durable, and fair to all other segments of the society who have a legitimate claim to public resources.”
This stance came shortly after the Nigeria Labour Congress and Trade Union Congress suspended a two-day strike, which began in protest against the Federal Government’s failure to approve a new minimum wage by May 31 and reverse an electricity tariff hike.
The government committed to establishing a national minimum wage higher than N60,000 and agreed to daily meetings to finalise the wage.
The labour unions agreed to discuss the new offer internally and assured that no worker would face repercussions for participating in the strike.
The resolution was signed by Minister of Information and National Orientation, Mohammed Idris, and Minister of State for Labour and Employment, Nkeiruka Onyejeocha.
