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Why Governors Rejected N100,000 Minimum Wage Proposal

Thompson Nsisongabasi

Jun 07, 2024

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.

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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.

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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.

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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.

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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.

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"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,ÔÇØ the source said.

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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 sustainableÔÇØ.

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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.

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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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— Thompson Nsisongabasi

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