The Nigeria Labour Congress (NLC) has firmly opposed the Southern Governors’ Forum’s recent stance on the national minimum wage, suggesting that states should determine their own minimum wages based on their financial capabilities. This response came in a statement released on Friday by Benson Upah, the NLC’s Head of Information and Public Affairs.
NLC’s Stand on National Minimum Wage
“The notion that states should individually dictate their minimum wage is not only dictatorial but undermines the very essence of the national minimum wage model adopted in Nigeria,” Upah stated. The NLC argues that the national minimum wage is designed to set a baseline below which no worker should be paid, ensuring a minimum standard of living for every worker.
Ongoing Debate and Proposals
The debate over the new minimum wage has been ongoing for months, involving labor unions, the government, and the private sector. The tripartite committee on the new minimum wage has proposed ₦62,000, while organized labor insists on ₦265,000. President Bola Tinubu, after receiving the committee’s report, assured that the government would pay what it could afford, with further consultations ongoing before a bill is sent to the National Assembly.
Southern Governors’ Forum’s Position
During a recent meeting, the Southern Governors’ Forum argued that the minimum wage should reflect the cost of living and each state’s ability to pay, advocating for states to negotiate their own minimum wages. They believe that a uniform national minimum wage does not account for the varying financial capacities and cost of living across different states.
NLC’s Criticism of the Governors’ Position
However, the NLC criticized this position, asserting it threatens the welfare of Nigerian workers and the national economy. “The concept of a national minimum wage is not arbitrary. It represents a national wage floor, a baseline below which no worker should be paid. This threshold ensures a minimum standard of living for every worker. The governors’ demand to unilaterally determine the minimum wage negates this principle,” the union emphasized.
The NLC reminded the governors that the national minimum wage does not equate to individual state pay structures, which already reflect states’ unique financial capabilities. This flexibility allows states to reward workers in line with their financial realities.
Extravagant Lifestyles and Double Standards
The NLC also criticized the extravagant lifestyles of governors and political officeholders, questioning why there is no similar debate over the uniform salaries of political officeholders determined by the Revenue Mobilisation, Allocation, and Fiscal Commission. “This double standard, which pits a few privileged against the majority poor, should concern those who love this country,” the statement read.
Intensified Call for a New Minimum Wage
The call for a new minimum wage has intensified following the removal of the fuel subsidy and the floating of the naira, which led to increased inflation. Despite ongoing negotiations, labor unions and the government have yet to reach a consensus. Workers have previously embarked on a warning strike, impacting critical sectors of the economy to press their demands.
NECA’s Warning
The Nigeria Employers’ Consultative Association (NECA) has warned against a minimum wage higher than ₦62,000, indicating that exceeding this amount could lead to non-compliance issues and potential legal challenges in the National Industrial Court. NECA’s director-general, Adewale Oyerinde, stated that setting the minimum wage too high could create non-compliance issues and burden the judiciary with numerous cases of dissatisfied employees seeking redress in court.
