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Fresh Labour Crisis Looms As Nigerian Governors Say N60,000 Minimum Wage ‘Not Sustainable’

Governors contend that paying N60,000 minimum wage means many states will spend all their FAAC allocations paying salaries.

The peace between organised labour and the Federal Government over the national minimum wage may be a temporary honeymoon as the 36 State governors on Friday said they cannot sustain the N60,000 being proposed by government.

According to them, many states will spend all their FAAC allocations on just paying salaries with nothing left for development purposes. 

The governors under the aegis of Nigerian Governors Forum (NGF), said a few states will end up borrowing to pay workers every month, a decision, they said, is not in the collective interest of the country, including workers. 

The Acting Director of NGF, Media and Public Affairs, Hajiya Halimah Salihu Ahmed, in a statement appealed that all parties involved, especially the labour unions, should consider all the socio-economic 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.

She said, “The forum’s stand is the N60,000 minimum wage not sustainable.

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 collective interest of the country, 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 legitimate claim to public resources.”

Friday Olokor, Abuja

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