At a crucial meeting in Abuja, state governors decided they will not support a minimum wage higher than N70,000, citing economic constraints. The Nigeria Governors’ Forum (NGF) reviewed various options but ultimately concluded that anything above N70,000 would be unaffordable and unsustainable for states.
Sources from the meeting disclosed that the governors considered options between the Federal Government’s N60,000 offer and the N70,000 currently paid by Edo State. Despite extensive discussions, the governors failed to reach a consensus on a uniform amount, leading to the formation of a committee led by Imo State Governor Hope Uzodimma to further review the proposals.
“We decided to consider options between N60,000 and N70,000 a month. No state can afford to pay a N100,000 minimum wage, and we have ruled out this benchmark.” a source revealed.
The source added that “some states are still paying the old N18,000 minimum wage due to financial constraints, highlighting the challenge of implementing higher wages.”
The meeting aligned with the previous statement by NGF Chairman and Kwara State Governor AbdulRahman AbdulRazaq, who emphasized that states would only agree to a minimum wage that is “affordable and sustainable.”
Meanwhile, the Presidency has denied reports suggesting “that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, proposed a new minimum wage of N105,000. Special Adviser to the President on Information and Strategy, Bayo Onanuga, dismissed the claims as false.”
“The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has not proposed N105,000 minimum wage. The contrary story being disseminated is false,” Onanuga stated.
President Bola Tinubu met with Edun after an audience with an International Finance Corporation (IFC) team at the Presidential Villa in Abuja. While Edun did present a proposal for a new wage, it did not include the N105,000 figure. Edun and other officials discussed the fiscal implications of various wage options and their potential impact on the national budget.
A new wage offer from the Federal Government is expected to be presented soon before the tripartite committee negotiating a national salary scale. This follows the government’s recent increase of their initial offer to N60,000, which was rejected by labor unions. The unions reduced their demand from N615,000 to N494,000. The intervention by the Presidency led to an agreement to pay more than N60,000, temporarily ending a nationwide strike.
The tripartite committee, which includes representatives from the government, organized labor, and the private sector, continues to negotiate the new minimum wage. The committee is expected to receive a detailed report outlining the costs and implications of various wage levels.
Governor Uzodimma expressed optimism about reaching an agreement, saying, “I am sure we will reach some concrete agreement when we reconvene tomorrow. It is not about the amount. We are taking a holistic approach.”