The implementation of a new minimum wage in Nigeria is facing roadblocks. While President Tinubu has promised to send a proposal to the National Assembly, state governments are wary of the financial burden it may create.
The N62,000 minimum wage recommended by a tripartite committee could more than double the current N30,000. A report by the Nigeria Governors’ Forum (NGF) warns that this increase could push many states into insolvency due to rising recurrent expenditure. Their analysis suggests only a handful of states might have enough revenue to handle such a hike.
The Southern Governors’ Forum argues that each state should have the autonomy to negotiate minimum wage with its workers. Meanwhile, labor unions are pushing back against the NGF’s stance, calling for a nationwide minimum wage increase.
With these conflicting positions, a resolution on the new minimum wage seems far from certain.
Source: PUNCH