The Federal Government of Nigeria is heading towards a clash with state governors and the private sector over its proposal to raise the minimum wage above N60,000. While the federal administration is considering a new minimum wage of N65,000, both governors and organised private sector representatives have expressed strong opposition, arguing that a wage higher than N57,000 would be unsustainable.
State governors have voiced concerns that agreeing to a minimum wage above N57,000 would severely constrain their budgets, leaving little room for developmental projects. Insiders report that the states fear they would have to allocate a significant portion of their resources to worker salaries, detracting from other critical areas of spending.
Negotiations between the Federal Government and Organised Labour, represented by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), are ongoing, with both sides making offers and counter-offers. Organised Labour has firmly rejected the government’s proposal of N60,000, lowering their own initial demand from N615,000 to N494,000.
A member of the Tripartite Committee on the minimum wage negotiations told The PUNCH that recent discussions saw the Federal Government and private sector proposing a monthly minimum wage of N60,000, up from their previous offer of N57,000. However, this proposal was also rejected by labour unions, who have insisted that the current minimum wage of N30,000 is insufficient to meet workers’ needs, noting that many states are not even adhering to this amount.
NLC President Joe Ajaero criticised the government’s proposals, calling them inadequate. “It is still not substantial compared to what we need to get a family moving,” he said. Ajaero highlighted the dire economic situation for workers, lamenting the disparity between the living conditions of the working class and the elite.
The dispute has already led to a brief nationwide strike, which disrupted economic activities across the country. The strike, called to protest the Federal Government’s delay in approving a new minimum wage and reversing the hike in electricity tariffs, was suspended after a six-hour meeting between government officials and labour leaders. During the meeting, the government reaffirmed President Bola Tinubu’s commitment to establishing a minimum wage above N60,000 and promised daily negotiations to finalise the figure.
Despite these assurances, the Nigeria Governors’ Forum (NGF) has issued a statement describing the proposed N60,000 minimum wage as “unsustainable.” Halimah Ahmed, acting Director of Media and Public Affairs for the NGF, explained that many states would struggle to allocate funds for development if forced to pay such high wages. She urged all parties to consider the broader economic impact of any new wage agreement.
The NGF’s concerns are echoed by representatives from the Organised Private Sector, who feel sidelined in the negotiations. A manufacturer in Lagos expressed frustration, stating, “The FG has literally shaved our heads in our absence.” He criticised the government for not allowing proper consultation with the private sector.
Documents obtained from the NGF reveal the precarious financial status of many states, indicating that several would face significant budget shortfalls if a higher minimum wage were implemented. For example, Abia State would face a deficit of over N17 billion, while Ekiti would have a shortfall of over N13 billion.
Despite these financial constraints, some members of the Federal Government’s negotiation team remain optimistic about reaching a consensus. Imo State Governor Hope Uzodinma, emerging from a marathon meeting of the Tripartite Committee, said that a near consensus had been reached and that a final agreement was within sight.
Meanwhile, the NLC has rejected comments by the Secretary to the Government of the Federation, George Akume, who labelled the recent strike actions as “treasonable felony and economic sabotage.” The NLC argued that the real saboteurs are those involved in corruption and the misappropriation of public funds, not the workers fighting for fair wages.
