Minimum wage: NGF says N60,000 unsustainable

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The Nigeria Governors’ Forum (NGF), comprising the 36 state governors, has stated that the Federal Government’s proposal of a ₦60,000 minimum wage is not sustainable.

The NGF disclosed this in a statement by its Acting Director of Media Affairs and Public Relations, Halima Ahmed.

Earlier, the NRTC reported that labor unions rejected the proposed ₦60,000 minimum wage, leading to a nationwide strike on Monday, which was relaxed on Tuesday after an agreement was reached with the federal government.

The labor unions, consisting of the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), proposed ₦494,000 as the new minimum wage for workers in the country. They also demanded a reversal of the recent electricity tariff hike.

The NGF warned that if the proposed amount is implemented, many states would have to use their entire monthly allocations from the federation account to pay workers’ salaries.

The governors appealed to members of the tripartite committee to agree on a minimum wage that would be fair and sustainable.

The statement read thus: “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.

“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 cautions parties in this important discussion to look beyond just signing a document for the sake of it; any agreement to be signed should be sustainable and realistic.

“All things considered, the NGF holds that the N60,000 minimum wage proposal is not sustainable and can not fly. It will simply mean that many states will spend all their FAAC allocations on just paying salaries with nothing left for development purposes.

“In fact, a few states will end up borrowing to pay workers every month. We do not think this will be in the country’s collective interest, including workers.

“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 a legitimate claim to public resources.”