Govenors: N60,000 minimum wage is excessively high and unsustainable
The suggested minimum salary of N60,000 for Nigerian workers has been rejected by governors operating under the Nigerian Governors Forum.
The governors argued the proposed minimum wage is unsustainable and too costly in a statement released on Friday by NGF Director of Media and Public Affairs Halimah Ahmed.
NGF raised fears that many states would use all of their Federal Account Allocation Committee monies for salaries if the N60,000 minimum wage were implemented, leaving little money for development initiatives.
“The Nigeria Governors’ Forum agrees that a new minimum wage is due,” the statement said. The Forum also shares the working unions’ drive for greater pay.
“The Forum, however, strongly advises all parties to take into account the fact that the minimum wage talks also entail significant changes for all cadres, including pensioners. Parties to this crucial debate are advised by the NGF to consider more than simply signing a document; any agreement should be realistic and long-lasting.
“Taking everything into account, the NGF maintains that the N60,000 minimum salary proposal is unfeasible. It will just mean that many states will use up all of their FAAC allotment for salary payments, leaving little for growth. Actually, a few states will wind up borrowing money each month to pay their staff. This does not, in our opinion, serve the national interest as a whole, including that of the workers.
All participants to the negotiation process, especially the labour unions, were urged by the NGF to consider all socioeconomic aspects and come to a long-lasting accord.
“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,” it said.
The tripartite committee had presented an N60,000 offer, which the organised labour had pledged to oppose even a small increase to.
Festus Osifo, President of the Trade Union Congress, restated this position on the Politics Today show on Channels Television.
Following a deal with the Federal Government, the organised labour groups—which included the TUC and the Nigeria Labour Congress—stopped their Monday-started strike action.
The government gave them the guarantee that President Bola Tinubu is dedicated to a minimum wage higher than the N60,000 that was formerly promised.
The governors concurred that a new minimum wage is necessary less than 24 hours after Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, gave the President a presentation on the financial implications of one.