Governors Reject Wage Increase Above N70,000

At a pivotal meeting in Abuja yesterday, Nigeria’s governors reaffirmed their stance on the minimum wage, deciding that anything above N70,000 would be unaffordable and unsustainable. The discussion, held under the auspices of the Nigeria Governors’ Forum (NGF), focused on balancing economic realities with labor demands.

The governors deliberated on various wage options, specifically between N60,000 and N70,000, the latter being the amount currently implemented by the Edo State Government. Despite extensive discussions, they could not reach a unanimous decision on a fixed amount. Consequently, a committee led by Imo State Governor Hope Uzodimma was established to review the proposals and provide recommendations.

Uzodimma, who also chairs the Progressives Governors Forum (PGF), is expected to lead the committee in examining the financial implications of different wage options. This aligns with earlier remarks by NGF Chairman and Kwara State Governor AbdulRahman AbdulRazaq, emphasizing that any minimum wage must be both “affordable and sustainable.”

A source from the meeting indicated that some states still struggle with the current N30,000 minimum wage, with a few even unable to exceed N18,000. The source also noted that a N100,000 minimum wage was completely ruled out, considering the financial constraints of the states.

In a related development, the Presidency dismissed reports suggesting that the Minister of Finance, Wale Edun, proposed a N105,000 minimum wage to President Bola Ahmed Tinubu. Special Adviser to the President on Information and Strategy, Bayo Onanuga, clarified via his verified X account that such claims are false.

The Finance Minister did meet with the President to discuss the fiscal implications of a new wage structure, but no such figure was proposed. Instead, Edun presented a detailed analysis of how various wage levels would impact government finances at all employee grades.

A new wage proposal is expected to be presented to the tripartite committee negotiating the national salary scale. This follows a previous offer of N60,000 by the Federal Government, which was rejected by labor unions who have since lowered their demand from N615,000 to N494,000.

Despite a recent intervention by the Presidency that led to a brief end to labor strikes, the tripartite committee has yet to reach a consensus. Yesterday’s meeting saw the committee break into sub-groups to expedite discussions, with Governor Uzodimma expressing optimism about reaching an agreement soon.

“We aim to reach a concrete agreement that can be presented to the National Assembly,” Uzodimma stated. “This isn’t just about the workers; it’s about ensuring a sustainable and sovereign future for Nigeria. All parties must work together with the government to satisfy the nation’s needs.”

Further deliberationsand a final proposal are expected to be presented in the coming days.