The Nigeria Governors’ Forum (NGF) has cautioned that the proposed N60,000 minimum wage by the Federal Government is a financial trap that could bankrupt states. The governors argue that implementing this wage would devour entire monthly allocations from the federation account, leaving nothing for development projects.
The Forum’s Acting Director of Media Affairs and Public Relations, Mrs. Halima Ahmed, issued a statement on Friday , urging the tripartite committee to reconsider and agree on a sustainable wage that balances workers’ needs with fiscal responsibility.
The governors’ alarm bell signals a looming financial crisis that could cripple state economies if the proposed wage is enforced without careful consideration.”
The statement reads in parts: “The Nigeria Governors’ Forum (NGF) is in agreement that a new minimum wage is due. The Forum also sympathises with labour unions in their push for higher wages.
“However, the Forum urges all parties to consider the fact that the minimum wage negotiations also involve consequential adjustments across all cadres, including pensioners.
“The NGF cautions parties in this important discussion to look beyond just signing a document for the sake of it; any agreement to be signed should be sustainable and realistic.
“All things considered, the NGF holds that the N60,000 minimum wage proposal is not sustainable and can not fly. It will simply mean that many states will spend all their FAAC allocations on just paying salaries with nothing left for development purposes.
“In fact, a few states will end up borrowing to pay workers every month. We do not think this will be in the collective interest of the country, including workers.
“We appeal that all parties involved, especially the labour unions, consider all the socioeconomic variables and settle for an agreement that is sustainable, durable, and fair to all other segments of the society who have legitimate claim to public resources,” the statement read.