Governors from the Southern region of Nigeria, under the Southern Governors’ Forum, have called for the new minimum wage to be tailored to the financial capacities of individual states.
This proposal comes amid broader national efforts to resolve the ongoing minimum wage crisis.
During the Nigerian Governors’ Forum (NGF) meeting on Wednesday night, governors emphasized their commitment to finding a mutually agreeable solution to the minimum wage dispute.
Despite the presence of President Bola Tinubu at the typically Vice President-led National Economic Council (NEC) meeting, no statements were made regarding the wage issue.
Organised Labour has voiced concerns about rising restiveness among workers in both the public and private sectors due to delays in finalizing the new minimum wage.
They warned that workers are pressuring labor leaders to initiate industrial action to expedite the process.
Governors Push for Flexibility in Wage Determination
The Southern Governors’ Forum, in a 16-point communiqué issued on Thursday, advocated for state-specific wage negotiations with labor unions, reflecting local cost-of-living variations. This discussion also touched on themes of fiscal federalism and devolution of powers.
Following a late-night NGF meeting in Abuja, which included governors and deputy governors from multiple states, the forum reiterated their dedication to the ongoing process.
The NGF, chaired by Kwara State Governor AbdulRahman AbdulRazaq, committed to continued stakeholder engagement to ensure fair wage adjustments.
In January, President Tinubu established a tripartite committee involving organized labor, federal and state government representatives, and the Organised Private Sector (OPS) to negotiate a new minimum wage.
However, the committee’s inability to reach an agreement led to an indefinite strike by labor unions on June 3, 2024, causing significant disruptions across various sectors.
Background on Minimum Wage Negotiations
The current minimum wage of ₦30,000 has been deemed insufficient by labor unions, who demand a more economically realistic figure in light of inflation and recent economic policies, including petrol subsidy removal and forex unification.
Labor’s initial demand for a minimum wage of ₦494,000 was reduced to ₦250,000, while the government’s counter-offer was increased from ₦60,000 to ₦62,000.
Following assurances from President Tinubu of a living wage above ₦60,000, labor unions suspended their strike on June 4, 2024.
Both labor and government representatives resumed negotiations, yet failed to finalize an agreement by June 7, 2024.
Reports from both sides were submitted to the President, who committed to wider consultations and sending an executive bill to the National Assembly for the new minimum wage legislation.
In his Democracy Day speech on June 12, 2024, President Tinubu reaffirmed his commitment to presenting an executive bill on the new minimum wage to the National Assembly soon.
The President continues to consult on the matter, with a decision on the ₦62,000 government proposal and the ₦250,000 labor demand pending.