By Akinsuroju Olubunmi
Minimum Wage debate: Governors reject proposed increase
The Nigerian Governors Forum (NGF) has rejected the proposed N60,000 minimum wage, stating that it is too high and unsustainable. In a statement issued by the Director of Media and Public Affairs for NGF, Halimah Ahmed, the governors expressed concerns that if the new minimum wage is adopted, many states would allocate their entire Federal Account Allocation Committee (FAAC) funds to salaries, leaving no resources for development projects.
The NGF urged all parties involved in the negotiation process, particularly the labour unions, to consider all socioeconomic factors and reach a sustainable agreement. They argued that the N60,000 minimum wage proposal is not feasible, as it would mean that many states would have to borrow to pay workers every month, which they believe is not in the collective interest of the country.
The organized labour, including the Trade Union Congress (TUC) and the Nigeria Labour Congress (NLC), had previously vowed to reject any minimasustainability of
the N60,000 offer proposed by the tripartite committee on the new minimum wage. However, they suspended their industrial action after reaching an agreement with the Federal Government, who assured them that President Bola Tinubu is committed to a minimum wage higher than the N60,000 previously offered.
The governors’ rejection of the proposed N60,000 minimum wage comes less than 24 hours after the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, presented the cost implications of a new minimum wage to the President. The NGF has urged all parties involved to consider the sustainability and fairness of any agreement reached.
Minimum Wage, Sustainability
Minimum Wage debate: Governors reject proposed increase