From Adanna Nnamani, Abuja
In a strong rebuke to the Nigeria Governors Forum (NGF), the Nigeria Labour Congress (NLC) has condemned the assertion that state governments cannot afford to pay a minimum wage of N60,000, stating that it is tantamount to condemning the country to economic ruin.
The 36 state governors had voiced their concerns, stating that the proposed N60,000 minimum wage by the Federal Government is not feasible and cannot be implemented by them.
Acting Director of Media Affairs and Public Relations of the Governor’s Forum, Mrs. Halima Ahmed, in a statement on Friday, had said that implementing such a wage increase would exhaust many states’ monthly allocations from the Federation Account solely on paying workers’ salaries.
Expressing their dismay, the NLC in a statement by its Spokesperson, Mr Benson Upah, at the weekend, labeled the governors’ remarks as an act of bad faith, particularly as they were made during ongoing negotiations.
The assertion, NLC added, was not only tasteless but also unfounded, given the significant increase in allocations from the Federation Account Allocation Committee (FAAC), which has surged from N700 billion to N1.2 trillion.
The NLC emphasised that cutting down on the exorbitant cost of governance, reducing corruption, and prioritising workers’ welfare would enable states to meet a reasonable minimum wage, not necessarily the proposed N60,000.
Clarifying the purpose of a national minimum wage, the NLC underscored its role in setting a baseline to protect the most vulnerable in society.
They cautioned against fixating solely on figures, stressing the importance of considering the value of wages in the context of inflation and currency depreciation.
Highlighting the current economic challenges, including the removal of fuel subsidies and drastic currency devaluation, the NLC warned of dire consequences if workers’ wages remain stagnant. They pointed out the interconnectedness between workers’ wages and the overall health of the economy, particularly in states heavily reliant on public sector spending.
In a plea to the governors, the NLC urged a reconsideration of their stance, warning of catastrophic repercussions for both workers and the national economy if a fair minimum wage is not ensured.
“We do believe the Governors have acted in bad faith. It is unheard of for such a statement to be issued to the world in the middle off an on-going negotiation. It is certainly in bad taste.
“As for the veracity of their claim, nothing can be farther from the truth as FAAC allocations have since moved from N700 billion to N1.2 trillion. making the governments extremely rich at the expense of the people.
“All that the governors need to do to be able to pay a reasonable national minimum wage (not even the N60,000) is cut on the high cost of governance, minimise corruption as well as prioritise the welfare of workers.
“It is important to explain here that a national minimum wage is not synonymous with the different pay structures of different states. The national minimum wage is the lowest floor below which no employer is allowed to pay. The aim is to protect the weak and the poor.
“We are not fixated with figures but value. Those who argue that moving the national minimum wage from N30,000 to N60,000 is sufficiently good enough miss the point. In 2019, when N30,000 became the minimum, N300 exchanged for $1 (effectively making the minimum wage an equivalent of $100 or thereabout) while inflation rate was 11.40.
“At the moment, the exchange rate is at N1,600 to $1 while inflation hovers at 33.7% (40% for food). This puts the value of the minimum wage at $37.5 for a family of six. This is happening at a time costs of everything rose by more than 400% as a result of the removal of fuel subsidy. This is an extreme bad news for the poor.
“Government’s policies of fuel subsidy removal, mindless devaluation of the Naira, energy tariff hike by 250% and interest rate hike by 26.5% will continue to hurt the economy (especially manufacturing sector) and the poor.
“Already manifest is the mass incapacity of Nigerians to purchase goods, leading to overflowing warehouses of the productive sector of the economy. The downward trend will continue except the capacity of workers and businesses is enhanced.
“Paying a miserable national minimum wage portends grave danger to not only the workforce but the national economy as in truth, economies of most states are driven by workers wages. In the light of this, we urge the governors to do a re-think and save the country from a certain death,” the statement read.