PARIS OLYMPIC GAMES
The Nigeria Labour Congress (NLC) has strongly criticized the Nigeria Governors Forum’s (NGF) refusal to implement the proposed ₦60,000 minimum wage, labelling it a recipe for economic disaster and accusing the governors of negotiating in bad faith.
Persecondnews recalls that Mrs. Halima Ahmed, the NGF’s Acting Director of Media Affairs and Public Relations, expressed concern yesterday that the proposed minimum wage would deplete their states’ monthly funds from the federal government, leaving insufficient resources for other essential expenditures.
NLC spokesperson, Benson Upah, faulted the governors’ argument, highlighting that FAAC disbursements have surged from ₦700 billion to ₦1.2 trillion, indicating a substantial increase in funds available to states, making the proposed wage feasible.
Upah suggested that cutting excessive government spending and tackling corruption could free up resources, making it possible to implement the proposed minimum wage.
The NLC stressed that the minimum wage is a vital safeguard for the most vulnerable workers and urged the governors to reconsider their stance in light of the harsh economic conditions faced by workers, including soaring inflation, fuel subsidy removal, and currency devaluation, which have significantly eroded their purchasing power.
The labour movement warned that failing to adjust the minimum wage could have severe repercussions on the national economy, especially in states where the public sector plays a significant role in economic activities.
The labour union advocated a fair and balanced solution that takes into account the economic welfare of workers, which is critical for the nation’s overall well-being.
The statement reads: “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 of an ongoing negotiation. It is certainly in bad taste.
“As for the veracity of their claim, nothing can be further 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, minimize 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 on 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 the 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 the manufacturing sector) and the poor.”
It added:”Already manifest is the mass incapacity of Nigerians 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, the economies of most states are driven by workers wages.
“In light of this, we urge the governors to do a re-think and save the country from a certain death.”
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