Strike may return soon as governors say ₦60,000 minimum wage too high

Nigerians may have to brace up for another industrial action by Organised Labour as governors have said the ₦60,000 minimum wage for workers is too high and unsustainable for them.

The governors, under the aegis of the Nigerian Governors' Forum (NGF), stressed that many state governments would spend their entire allocation to pay salaries while there would be nothing left for developmental projects if the proposal is implemented.

This was disclosed by the Director of Media and Public Affairs (NGF), Hajiya Halimah Salihu Ahmed, in a statement on Friday, June 7, 2024.

Recall the Nigeria Labour Congress (NLC) and the Trade Union Congress (TCN) embarked on an industrial action on Monday, June 3, 2024, after rejecting the Federal Government's offer of ₦60,000 minimum wage.

However, the strike was suspended on Tuesday after the labour unions extracted the commitment of President Bola Tinubu that the offer would be upwardly reviewed with a deadline of one week.

Governors says ₦60,000 unaffordable

However, the governors have argued that even the Federal Government proposal is not realistic and many states will be forced to borrow to pay workers' salaries if implemented.

“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 a legitimate claim to public resources,” the statement read partly.

Labour gives the government a week ultimatum

Negotiations between labour and government have been dragging on for months as both parties' proposals stand miles apart.

The Federal Government, supported by the organised private sector, had described the labour unions' request of ₦494, 000 as outrageous and unrealistic while the latter also insisted that the former's offer was unacceptable.

Labour only suspended the strike for one week to give the government a chance to come up with an acceptable offer.