Abuja, Nigeria – The Governors of Nigeria’s 36 states have unanimously rejected the federal government’s proposal of a N60,000 minimum wage, citing concerns about its sustainability and the potential financial strain it would place on state budgets.
Official Statement from the Nigeria Governors’ Forum (NGF)
Hajiya Halimah Salihu Ahmed, Director of Media and Public Affairs for the Nigeria Governors’ Forum (NGF), disclosed the governors’ position in a statement released on Friday, June 7.
Key Points of the Statement
- Support for Minimum Wage Increase: The NGF acknowledges the need for a new minimum wage and expresses sympathy with labor unions pushing for higher wages.
- Concerns About Sustainability: The governors argue that a N60,000 minimum wage is unrealistic and unsustainable. Implementing it would force many states to use their entire Federation Account Allocation Committee (FAAC) allocations solely for salary payments, leaving nothing for developmental projects.
- Potential for Increased Debt: Some states may have to resort to borrowing just to meet the salary demands, which the NGF believes is not in the collective interest of the country, including its workers.
- Comprehensive Consideration: The NGF emphasizes that minimum wage negotiations should consider consequential adjustments across all employment cadres, including pensioners. They caution against signing any agreement that is not financially viable in the long term.
- Appeal for Realistic Solutions: The NGF urges all parties, particularly labor unions, to take into account socioeconomic factors and strive for a sustainable, fair, and realistic wage agreement that balances the needs of all segments of society.