N60,000 Minimum Wage Unsustainable – Governors

The Nigeria Governors’ Forum, comprising the 36 state governors, has declared that the Federal Government’s proposal for a N60,000 minimum wage is unsustainable.

In a statement by Mrs. Halima Ahmed, Acting Director of Media Affairs and Public Relations for the Forum, it was noted that implementing the proposed wage would require many states to allocate their entire monthly federal funds to salaries, leaving no resources for development.

The governors urged the tripartite committee to agree on a minimum wage that is fair and sustainable. They emphasized that while they support the need for a new minimum wage and sympathize with labor unions, the wage negotiations must consider the broader impact on all salary levels and pensioners.

The NGF stressed that any agreement reached should be realistic and sustainable. They cautioned against a wage plan that would force states to spend all their funds on salaries or resort to borrowing, which would not serve the country’s collective interest.

The Forum appealed to all parties, especially labor unions, to take into account all socioeconomic factors and settle on a fair and durable agreement.

The organized labor had initially rejected the N60,000 proposal, leading to a nationwide strike that was suspended after the Federal Government promised to increase the minimum wage beyond N60,000. However, labor leaders have warned against any minimal increases.

Festus Osifo, President of the Trade Union Congress (TUC), stated on Channels Television’s Politics Today that labor would not accept small incremental additions to the proposed wage. He emphasized the need for an economically realistic offer in light of current inflationary pressures.

The tripartite committee has been meeting to finalize a new national minimum wage. Their fifth meeting since the strike suspension took place behind closed doors at the Nicon Luxury Hotel in Abuja, with key members, including representatives from the Nigeria Governors’ Forum, various ministers, and other prominent officials in attendance. The committee members indicated that a final figure might be announced soon.