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Governors Reject Federal Government’s N60,000 Minimum Wage Proposal

June 7, 2024




In a decisive move, the governors of Nigeria’s 36 states have unanimously rejected the federal government’s proposal of a N60,000 minimum wage, citing concerns over sustainability and financial viability. The announcement was made on Friday, June 7, by Hajiya Halimah Salihu Ahmed, Director of Media and Public Affairs for the Nigeria Governors’ Forum (NGF).

According to the NGF, the proposed wage increase, although well-intentioned, poses significant financial challenges for many states. The Forum emphasized that implementing such a high minimum wage would force some states to resort to borrowing just to meet salary obligations, leaving no funds for critical development projects.

“The Nigeria Governors’ Forum (NGF) is in agreement that a new minimum wage is due. The Forum also sympathizes with labour unions in their push for higher wages,” the statement read. “However, the Forum urges all parties to consider the fact that the minimum wage negotiations also involve consequential adjustments across all cadres, including pensioners.”

The governors stressed the importance of a balanced approach to wage increases, highlighting the broader economic implications. They argued that the proposed N60,000 wage would lead to states allocating all their FAAC (Federation Account Allocation Committee) distributions solely to salaries, neglecting essential public services and infrastructure projects.

“All things considered, the NGF holds that the N60,000 minimum wage proposal is not sustainable and cannot fly. It will simply mean that many states will spend all their FAAC allocations on just paying salaries with nothing left for development purposes,” the statement continued. “In fact, a few states will end up borrowing to pay workers every month. We do not think this will be in the collective interest of the country, including workers.”

The NGF called for a pragmatic approach, urging labor unions and other stakeholders to take into account the diverse socioeconomic factors at play. The Forum appealed for a consensus on a minimum wage that is not only fair to workers but also feasible for state governments to implement without compromising other critical public expenditures.

“We appeal that all parties involved, especially the labour 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 statement concluded.



Credit: The Nation

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One comment on “Governors Reject Federal Government’s N60,000 Minimum Wage Proposal”

  1. “It will simply mean that many states will spend all their FAAC allocations on just paying salaries with nothing left for development purposes,”

    The above is a statement from the Director of Media for The Nigeria Governors’ Forum
    The reasoning behind the rejection of the minimum wage increase by the Governors is lame. Sadly, she failed to tell us what amount they would back. Those lazy and incompetent men occupying states houses need to go back to school and learn what their responsibilities are. These are not people that are particularly smart business-wise. Most of them have never headed successful businesses in their lives. The FAAC is not money given to them to pay salaries. It is for important projects developments like roads construction and improvements, business developments and training of youths in technical fields that will benefit their states. It can also be used to give small business loans to their citizens to stimulate their economies.They need to stop wasting whatever they have on frivolous things like buying private jets. The state of Georgia in the U.S. consistently runs surpluses every year and distributes the excess to state workers. The governor runs the state like a business. Nigerian governors, learn how to run your states efficiently. Workers deserve a raise.

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