‘We’ll End Up Borrowing’ – Why Nigerian Governors Rejected N60,000 Minimum Wage

Nigerian Governors have rejected the proposed N60,000 minimum wage for workers, insisting it’s not sustainable.

Under the umbrella of Nigeria Governors Forum (NGF), the Governors expressed strong opposition to the proposed figure, which the Nigerian Labour Congress (NLC) had rejected and led to them initiating a nationwide strike on Monday.

What the Governors said:

1. The governors argue that such an increase is financially impractical and could divert essential funds away from development projects.

2. The NGF highlighted that implementing the proposed wage would force many states to use their entire Federal Account Allocation Committee (FAAC) funds for salaries alone. This scenario could lead to a significant reduction in funds available for infrastructure and other critical developmental needs, potentially stalling growth in various states.

3. According to them, some states might even find themselves in a position where they need to borrow money just to meet monthly salary obligations. 

4. The NGF urged all parties involved, particularly the labour unions, to take into account various socioeconomic factors before finalising any wage increase.

ALSO READ: 4 Key Resolutions Between Tinubu and the NLC on Minimum Wage

Labour and FG Talks

On Wednesday, the Minister of Finance, Wale Edun, submitted the cost implication of a projected new minimum wage to President Bola Tinubu.

Tinubu had promised that the federal government would pay more than N60,000 initially proposed. But as at the time of filing this report, the President is yet to announce a new figure.

Despite the governors’ concerns, organised labour remains adamant about not accepting anything less than the N60,000 minimum wage.