The Nigerian Governors Forum (NGF) has expressed concerns over the proposed N60,000 national minimum wage, stating that it is unsustainable for most states. The governors argue that many states would have to allocate their entire FAAC (Federation Account Allocation Committee) funds to salaries, leaving no resources for development projects.
In a statement issued by the Acting Director of NGF, Media and Public Affairs, Hajiya Halimah Salihu Ahmed, the forum acknowledged the need for a new minimum wage and sympathized with labor unions advocating for higher wages. However, they emphasized the importance of considering the broader economic impact.
“The forum’s stand is that the N60,000 minimum wage is not sustainable. The Nigeria Governors’ Forum (NGF) agrees that a new minimum wage is due and understands the labor unions’ push for higher wages,” Ahmed said. “However, the forum urges all parties to consider the fact that minimum wage negotiations also involve consequential adjustments across all cadres, including pensioners.”
The NGF highlighted the financial strain that such a high minimum wage would place on state budgets, warning that some states might need to borrow funds monthly just to meet salary obligations. This, they argued, would not be in the collective interest of the country, including the workers themselves.
“We do not think this will be in the collective interest of the country, including workers,” Ahmed continued. “We appeal that all parties involved, especially the labor 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 legitimate claim to public resources.”
The governors called for a balanced approach to wage negotiations, one that ensures fair compensation for workers while also preserving the financial health of the states and enabling continued investment in development projects.