The federal government maintains its offer of a N62,000 monthly minimum wage, state governors under the Nigeria Governors’ Forum (NGF) have doubled down on their rejection, warning of potential consequences if compelled to implement the proposed wage bill.
According to a source who disclosed the governors’ position at Friday’s meeting of the minimum wage committee to THISDAY, the governors held that any forced wage bill on the states could lead to the retrenchment of about 40 percent of workers.
“You see, over 24 drivers attending to only four or five vehicles in the fleet. What do you want such state governments to do? Sack them? But where the states are forced or coerced to pay, there could be consequences of up to 40 per cent retrenchment,” the source said.
The source noted that most states are heavily indebted due to loans taken by their predecessors and cannot afford the new minimum wage, with only 10 states – Lagos, Delta, Akwa Ibom, Bayelsa, Cross River, Rivers, Ogun, Kano, and Kaduna – capable of paying without affecting overall development.
“Kano State is listed in the states that can pay the new minimum wage because it does not have any huge debt burden. This is quite like some states across the federation,” the source added.
Justifying the governors’ stance, the source cited the federal system of government, where salaries differ based on the ability to pay, using the example of U.S. governors’ varying salaries across states.
Revenue Challenges and Sustainability Concerns
The source further highlighted the revenue challenges faced by states, as daily crude oil production has remained poor, leading to limited revenue inflows until recently.
At the tripartite meeting, the Trade Union Congress (TUC) president, Mr. Festus Osifo, was challenged to explain what the oil union had done to curtail oil theft and militancy in the South-south geopolitical zone, impacting revenue.
An Anambra State Dispute
The labour movement threatened to picket Anambra State, alleging non-payment of the minimum wage. However, Governor Chukwuma Soludo countered that the state had been paying, but not the consequential adjustment as prescribed in the 2019 Minimum Wage Act. Soludo claimed there were no provisions for consequential adjustment payment in the 2019 bill.
NGF’s Position: N60,000 Minimum Wage Unsustainable
In a statement, the NGF’s Acting Director of Media and Public Affairs, Hajiya Halimah Ahmed, stated that the forum urged parties to consider the consequential adjustments across all cadres, including pensioners, involved in the minimum wage negotiations.
The NGF cautioned against signing an unsustainable agreement, insisting that “the N60,000 minimum wage proposal is not sustainable and cannot fly. It will simply mean that many states will spend all their allocations on just paying salaries with nothing left for development purposes.”
The forum appealed to all parties, especially labour unions, to consider socioeconomic variables and settle for a sustainable, durable, and fair agreement for all segments of society with legitimate claims to public resources.
