The Nigeria Labour Congress (NLC) asserts that state governors can afford to pay a minimum wage exceeding ₦60,000 if they minimize corruption and reduce the high cost of governance. This statement comes in response to the Nigeria Governors’ Forum’s claim that a ₦60,000 minimum wage is unsustainable.
In a statement released on Friday, NLC spokesperson Benson Upah criticized the governors’ stance, arguing that the claim was made in bad faith and during ongoing negotiations. According to the NLC, the governors’ assertion that some states would need to borrow money to pay the proposed wage is unfounded, especially given the recent increase in FAAC allocations from ₦700 billion to ₦1.2 trillion.
The NLC emphasized that reducing the high cost of governance, minimizing corruption, and prioritizing workers’ welfare would enable the payment of a reasonable national minimum wage. They clarified that a national minimum wage sets a baseline below which no employer should pay, protecting the most vulnerable workers.
Highlighting the economic context, the NLC noted that when the minimum wage was set at ₦30,000 in 2019, the exchange rate was ₦300 to $1, effectively valuing the minimum wage at around $100, with an inflation rate of 11.40%. Currently, the exchange rate is ₦1,600 to $1, and inflation stands at 33.7% (40% for food), reducing the minimum wage’s value to approximately $37.5 for a family of six. This decrease in value is occurring amidst a 400% rise in costs due to the removal of the fuel subsidy.
The NLC warned that government policies, such as the removal of fuel subsidies, the devaluation of the Naira, a 250% hike in energy tariffs, and a 26.5% increase in interest rates, are harming the economy and the poor, particularly affecting the manufacturing sector. The resulting economic strain is evident in the overstocked warehouses of the productive sector and a downward economic trend, which will persist unless workers’ and businesses’ capacities are enhanced.
The NLC stressed that paying a low minimum wage endangers not only the workforce but also the national economy, as workers’ wages drive most state economies. Therefore, they called on the governors to reconsider their position and take steps to save the country from further economic decline.
