The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), have strongly criticised the 36 governors for their stance on the N60,000 minimum wage offered by the Government on Tuesday, June 4.
The organised labour, through Benson Upah, the Head of Information and Public Affairs at the NLC headquarters, expressed disappointment and questioned the governors’ reasoning.
They noted the significant rise in fuel prices and the dollar-to-naira exchange rate, among other factors, which have substantially increased the cost of living.
“We are alarmed by the statement credited to the Nigeria Governors Forum that state governments cannot even afford to pay N60,000 as minimum wage as ‘a few states will end up borrowing to pay workers every month’.
“We do believe the governors have acted in bad faith. It is unheard of for such a statement be issued to the world in the middle of an ongoing negotiation. It is certainly in bad taste,” Upah said.
News Central reported that the Nigeria Governors’ Forum (NGF) through the Director Media and Public Affairs, Hajiya Halimah Salihu Ahmed, stated on Friday that the proposed N60,000 minimum wage was not sustainable, and states could not afford to pay.
Labour disputed the governors’ claim, citing an increase in Federal Account Allocation Committee (FAAC) allocations from N700 billion to N1.2 trillion.
They argued that by cutting the high cost of governance, curbing corruption, and prioritising workers’ welfare, the governors could afford a reasonable minimum wage.
The organised labour stressed that the national minimum wage aims to protect the weak and poor, and its value should be considered rather than fixating on figures.
They drew attention to the impact of economic policies such as fuel subsidy removal and currency devaluation, which have increased the financial burden on workers.
The labour leaders warned that paying a meagre national minimum wage would not only harm the workforce but also damage the national economy, as workers’ wages drive many states’ economies.
They urged the governors to reconsider their position to avert dire consequences for the country.
The statement further reads:
“All that the governors need to do to be able to pay a reasonable national minimum wage (not even the N60,000) is cut on the high cost of governance, minimise corruption as well as prioritise the welfare of workers.
“It is important to explain here that a national minimum wage is not synonymous with the different pay structures of different states. The national minimum wage is the lowest floor below which no employer is allowed to pay.
“The aim is to protect the weak and the poor. We are not fixated with figures but value. Those who argue that moving the national minimum wage from N30,000 to N60,000 is sufficiently good enough miss the point.
“In 2019, when N30,000 became the minimum, N300 exchanged for $1 (effectively making the minimum wage an equivalent of $100 or thereabout) while inflation rate was 11.40.
“At the moment the exchange rate is at N1,600 to $1 while inflation hovers at 33.7% (40% for food). This puts the value of the minimum wage at $37.5 for a family of six. This is happening at a time costs of everything rose by more than 400% as a result of the removal of fuel subsidy.
“This is an extreme bad news for the poor. Government’s policies of fuel subsidy removal, mindless devaluation of the Naira, energy tariff hike by 250% and interest rate hike by 26.5% will continue to hurt the economy (especially manufacturing sector) and the poor.
“Already manifest is the mass incapacity of Nigerians leading to overflowing warehouses of the productive sector of the economy. The downward trend will continue except the capacity of workers and businesses is enhanced.
“Paying a miserable national minimum wage portends grave danger to not only the workforce but the national economy as in truth, economies of most states are driven by workers’ wages.
“In light of this, we urge the governors to do a re-think and save the country from a certain death.”