After Obaseki, another south-south governor unveils new minimum wage

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Governor Bassey Otu of Cross River State has announced N40,000 as the new minimum wage for civil servants in the state.

The Governor made this announcement on Wednesday at U. J. Esuene Stadium in Calabar, where he joined the 2024 Workers Day Celebration, the spokesperson to the governor, Nsa Gill said in a statement.

According to the statement, Mr. Otu said the new minimum wage aligns with “the realities of the time rather than sentiments”.

“Owing to the peculiarity of Cross River State regarding its lean finances occasioned by low Statutory Federal Allocation and aggravated by the unfavourable State GDP to Debt servicing ratio, the new wage implementation is in line with the realities of the time rather than sentiments.”

The governor appealed to the workers to exercise patience regarding the backlog of gratuities dating back to 2014.

“Government is presently on the verge of concluding necessary arrangements for the staggered payment of outstanding gratuity to its retired workers.

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“Accordingly, whatever action aimed at alleviating the suffering of the workers is readily embraced by me. One of such measures is the payment of a living wage to the workforce.

“May I, therefore, state categorically that the government of Cross River State, under my leadership, is willing and ready to put smiles on the faces of its workers and in line with the season of sweetness which characterizes my administration,” the governor said.

Governor Otu becomes the second governor from the South-south region to increase minimum wage

Mr. Otu has become the second governor from the South-south region to independently declare a new minimum wage, amid ongoing discussions between the federal government and labor unions regarding a national minimum wage adjustment.

Earlier, News Round The Clock reported that Governor Godwin Obaseki of Edo State announced a new minimum wage of N70,000 for civil servants in the state.

Recall that in January, President Bola Tinubu established a 37-member National Minimum Wage Committee tasked with proposing a new minimum wage for all workers in Nigeria.

Despite conducting public hearings across the six geopolitical zones, the committee has yet to submit its recommendations to the federal government.

Consequently, President Tinubu did not unveil a new national minimum wage as expected on May 1.

Nigeria’s legislation permits the review of the minimum wage every five years. The current rate of N30,000 was last updated in 2019, with a new rate expected to come into effect from April 1.

However, the unilateral actions of some governors in announcing new minimum wages for civil servants in their states before the committee’s recommendations suggest a divergence from any potential outcomes of the committee’s deliberations.