State governors and the private sector have reportedly rejected the Federal Government’s proposed ₦62,000 new national minimum wage. Initially, the Federal Government had increased its minimum wage offer from ₦60,000 to ₦62,000, while organized labour reduced its demand from ₦494,000 to ₦250,000.....Read The Full Story Here ▶
According to Punch, the Federal Government may be open to accepting ₦65,000 as the new minimum wage, but governors and the organized private sector insist that any amount above ₦57,000 is unsustainable. Insiders indicate that the governors argue accepting a wage above ₦57,000 would leave states with insufficient funds for developmental projects due to the high wage bill.
Negotiations are ongoing, with both Organised Labour and the Federal Government making offers and counter-offers. A southern governor expressed concern about using substantial funds to pay less than 200,000 civil servants, who make up less than five percent of the population.
The Organized Private Sector also criticized the Federal Government for making decisions without proper consultation. A Lagos manufacturer, preferring anonymity, stated, “The FG has literally shaved our heads in our absence. Though we had nominal representations, they were not allowed to come back to us for proper consultation.”
Documents from the Nigeria Governor’s Forum highlight the states’ financial difficulties and their inability to pay more than ₦57,000. One such document, titled ‘Comparative Analysis of States Gross Allocation Between Subsidy and Non-Subsidy Regimes (January – December 2023),’ details the gross income received by states from the Federation Account.