Nigerian Governor Explains Why States, Others are Reluctant to Pay N62,000 as Minimum Wage
- A Nigerian governor has explained why the N62,000 minimum wage proposed by the federal government could prove difficult for states to pay
- TheTalk.NG reports that wages have become the top issue for Nigeria’s organised labour movements in the past year
- Citing the recent increase in the cost of living, the organised labour has been agitating for an upward review of the national minimum wage, currently N30,000 a month
TheTalk.NG journalist Ridwan Adeola Yusuf has over 9 years of experience covering public journalism and labour matters in Nigeria.
FCT, Abuja – Although most Nigerian states have been getting more allocations since the removal of the fuel subsidy by the Bola Tinubu administration in May 2023, sources have disclosed that the increment was paltry and not enough to sustain payment of N62,000 minimum wage.
According to a report by Vanguard newspaper on Thursday, June 20, sources revealed that lack of funds was the reason most of the governors were foot-dragging on the new wage negotiations, which they did not take an active part in.
Several state governments face financial hurdles in implementing the proposed N62,000 minimum wage agreed upon by the FG and the organised private sector (OPS).
Photo credit: @NGFSecretariatSource: Twitter
Per data on federal allocations to states before and after subsidy removal in May 2023, most of the states received between 20 and 25 per cent increment in allocations, while some others conversely, received fewer allocations.
Arguing that most states would have issues paying N62,000 as minimum wage, a governor said:
“There is need to consider the consequences on the economy, inflationary trend and possible layoff of workers if the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) blackmailed the government to agree on a minimum wage that is not realistic and sustainable.
‘’There is a general consensus that minimum wage should be increased but it has to be within a realistic band of what all parties can pay. That is why the private sector and government are offering N60,000.”
More to read on new minimum wage
FG told to pay N150,000 as minimum wage
Earlier, TheTalk.NG reported that Senator Ahmed Aliyu Wadada, the lawmaker representing Nasarawa West zone, urged Tinubu to approve at least N150,000 as the new minimum wage.
The Social Democratic Party of Nigeria (SDP) chieftain noted that the current realities of the Nigerian economy informed his stance.
Proofreading by James Ojo Adakole, journalist and copy editor at TheTalk.NG.
Source: TheTalk.NG
