The Nigeria Governors’ Forum (NGF) has warned that implementing the new minimum wage could push states into bankruptcy due to increased recurrent expenditure.
However, labour unions have reacted, dismissing the NGF’s stance as an attempt to intimidate workers.
According to an NGF report, 13 states would fall into deficit if recurrent expenditure increased by 50%. Only 10 states would remain financially stable. The report predicted that implementing the N62,000 minimum wage would leave only a few states with positive net revenues.
Labour unions have criticized the NGF’s stance, stating that it is an attempt to intimidate workers and undermine the minimum wage negotiations. The unions argue that the states’ financial woes are not a justification to deny workers a fair wage.
The Federal Executive Council has stepped down a memorandum on the new minimum wage to allow for further consultations among federal and state governments, the private sector, and labour unions. President Bola Tinubu is expected to send the new minimum wage bill to the National Assembly soon.
The Southern Governors’ Forum has asked each state to negotiate the minimum wage with its workforce, while the labour unions have vowed to resist any attempt to undermine the minimum wage negotiations.
