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Why Governors Rejected N100,000 Minimum Wage Proposal

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Why Governors Rejected N100,000 Minimum Wage Proposal

Governors from across the 36 states in Nigeria have said that a minimum wage higher than N70,000 is not affordable or sustainable for the states.

The governors made the remarks when they met under the Nigeria Governors’ Forum (NGF), to discuss the economic situation and the ongoing debate around the minimum wage.

They considered options ranging from N60,000, which was offered to Labour by the Federal Government before the strike, to N70,000, which is currently being paid by the Edo State Government.

Despite their efforts, they were unable to reach a consensus on a uniform amount and have instead set up a committee headed by Imo State Governor Hope Uzodimma to review the options and make recommendations.

According to sources at the meeting, the governors are in agreement that a minimum wage of N100,000 is not feasible, and some states are still struggling to pay the current minimum wage of N30,000, which came into effect in 2019.

“Records available to us indicated that some states are still paying N18,000 because they are unable to afford N30,000 (which came into effect in 2019). Only a state has adopted a N70,000 wage,” the source said.

The governors’ position is in line with a previous statement made by the Chairman of NGF and Kwara State Governor AbdulRahman AbdulRazaq, who stated that states will only agree to a minimum wage that is “affordable and sustainable”.

Meanwhile, the Presidency on Thursday denied reports that the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, submitted a proposal for a new minimum wage of N105,000 to President Bola Ahmed Tinubu.

Special Adviser to the President on Information and Strategy, Bayo Onanuga, described the reports as false, stating that the minister had not proposed any such amount.

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