The N60,000 minimum wage proposal put forth by the Bola Tinubu administration has faced unanimous rejection from all 36 state governors of the federation.
This decision was conveyed through a press statement issued on Friday by Hajiya Halimah Salihu Ahmed, Director of Media and Public Affairs for the Nigeria Governors’ Forum (NGF).
The governors have deemed the proposed wage too high and unsustainable, expressing concerns that its implementation would force many state governments into taking on additional debt to meet payroll obligations.
“The Nigeria Governors’ Forum (NGF) is in agreement that a new minimum wage is due. The Forum also sympathises with labour unions in their push for higher wages,” the statement read.
“However, the Forum urges all parties to consider the fact that the minimum wage negotiations also involve consequential adjustments across all cadres, including pensioners.”
The NGF’s statement highlights the economic ramifications of such a wage increase, cautioning that many states would be compelled to allocate their entire Federation Account Allocation Committee (FAAC) funds to salaries, leaving no resources for developmental projects.
“All things considered, the NGF holds that the N60,000 minimum wage proposal is not sustainable and can not fly,” the statement continued.
“A few states will end up borrowing to pay workers every month. We do not think this will be in the collective interest of the country, including workers.”
This development follows an indefinite strike action initiated by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) on Monday after they rejected the federal government’s offer of N60,000 as the new minimum wage.
However, the labour unions have agreed to suspend the strike for one week to allow for further negotiations with the federal government, which has indicated a willingness to revise the wage offer upwards.
The NGF has appealed for a balanced approach, urging all parties to consider the broader socioeconomic implications of the minimum wage adjustments.
“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 legitimate claim to public resources,” the statement concluded.
As negotiations continue, the Nigerian workforce and the broader public await a resolution that addresses the needs of workers while ensuring the economic viability of state governments.