STATE GOVERNORS LAMENT OVER THE NEW MINIMUM WAGE

State governors under the Nigeria Governors Forum (NGF) have stepped up their rejection of the proposed minimum wage, claiming that forcing them to pay it would have negative consequences, while the federal government of Nigeria continues to offer a minimum wage of N62,000 per month.

According to a source who with THISDAY the governors’ stance during the minimum wage committee meeting on Friday, the governors believed that any mandatory wage legislation imposed on the states may result in the layoff of roughly 40% of the workforce.

The source revealed that the majority of states were unable to pay the new minimum wage because of their high debt loads from previous loans. Only ten states, he claimed, could afford the increased wage.

Lagos, Delta, Akwa Ibom, Bayelsa, Cross River, Rivers, Ogun, Kano, and Kaduna are the ten states that could pay the new minimum wage without compromising their overall strength and progress.

According to the source, Kano State is among the states that can afford to pay the new minimum wage because it does not have a significant debt load. This is very similar to certain federation states. “You see, only four or five of the fleet’s vehicles are being attended to by nearly 24 drivers. What actions do you like these state governments to take? Take them out? However, there may be repercussions of up to 40% layoffs in cases when the states are compelled or pressured to make payments.

The wages of the governors of Vermont, New York, and California differ from those of certain rural states in Mississippi and other states in the United States, which we are modelling. The governor of Mississippi makes less money annually than the governors of Vermont and California combined. This is how the federal constitution is supposed to work. The source went on to say that while daily crude oil production had remained low, state revenue had just recently grown.

According to the report, the tripartite conference threw open the door for Mr. Festus Osifo, the president of the Trade Union Congress (TUC), to share his experiences as an oil union representative when discussing the steps taken to reduce oil theft and militancy in the South-South
geopolitical zone.

During the Friday meeting, the governors declared that the N60,000 minimum salary was unworkable and unsustainable. According to a statement by Hajiya Halimah Ahmed, the acting director of media and public affairs for the NGF, all parties were requested to take into account that the minimum wage talks also contained significant modifications that affected all cadres, including pensioners. NGF emphasised that any agreement to be made should be realistic and sustainable, warning participants not to sign a contract just for the sake of signing one. “All things considered, the NGF maintains that the N60,000 minimum wage proposal is unworkable and unrealistic,” the statement read. It simply means that there won’t be any money left over for development in many states when all of their allotment is used to pay salaries.