The Nigeria Labour Congress (NLC) asserts that state governors have the capacity to pay a minimum wage exceeding ₦60,000 if they address corruption and streamline governance expenses within their states.
In a statement released late Friday, Benson Upah, spokesperson for the NLC, condemned the Nigeria Governors’ Forum for dismissing the ₦60,000 minimum wage proposal by the Federal Government as unattainable.
The full statement below by the NLC emphasizes their stand:
SAVE THE COUNTRY FROM A CERTAIN DEATH
“We are alarmed by the statement credited to the Nigeria Governors Forum that state governments cannot even afford to pay ₦60,000 as minimum wage, claiming that ‘a few states will end up borrowing to pay workers every month’.
We believe the Governors have acted in bad faith. It is unprecedented for such a statement to be issued in the middle of ongoing negotiations. This is certainly in poor taste.
Regarding their claim, it is far from the truth. FAAC allocations have increased from ₦700 billion to ₦1.2 trillion, making the governments significantly wealthier at the expense of the people.
All that the governors need to do to pay a reasonable national minimum wage (not even the ₦60,000) is to reduce the high cost of governance, minimize corruption, and prioritize the welfare of workers.
It is important to clarify that a national minimum wage is not synonymous with different pay structures across states. The national minimum wage is the lowest amount below which no employer is allowed to pay. Its aim is to protect the weakest and poorest workers.
We are not fixated on figures but on value. Those who argue that increasing the national minimum wage from ₦30,000 to ₦60,000 is sufficient miss the point. In 2019, when ₦30,000 became the minimum, ₦300 exchanged for $1, effectively making the minimum wage about $100, while the inflation rate was 11.40%.
Currently, the exchange rate is ₦1,600 to $1, while inflation hovers at 33.7% (40% for food). This reduces the value of the minimum wage to $37.5 for a family of six, at a time when the cost of everything has risen by more than 400% due to the removal of fuel subsidies. This is extremely bad news for the poor.
Government policies of fuel subsidy removal, reckless devaluation of the Naira, a 250% hike in energy tariffs, and a 26.5% interest rate hike will continue to harm the economy (especially the manufacturing sector) and the poor.
We are already seeing the massive incapacity of Nigerians, leading to overflowing warehouses in the productive sector of the economy. This downward trend will continue unless the capacity of workers and businesses is enhanced.
Paying a miserly national minimum wage poses a grave danger not only to the workforce but to the national economy, as the economies of most states are driven by workers’ wages.
In light of this, we urge the governors to reconsider and save the country from certain ruin.”
Benson Upah
Head of Information and Public Affairs
