The Nigeria Labour Congress (NLC) has strongly opposed proposals from some politicians to decentralize minimum wage negotiations, which would allow states to set their own minimum wages.
Negotiations over a new minimum wage have been ongoing for months, with various stakeholders struggling to reach an agreement.
The federal government and the private sector have settled on a new minimum wage of ₦62,000, while organized labor, represented by the NLC and the Trade Union Congress (TUC), is advocating for ₦250,000.
Organized labor argues that ₦62,000 is insufficient for the average worker, given the significant rise in the cost of living across the country.
However, the federal government has raised concerns about the sustainability of a ₦250,000 minimum wage, estimating it would cost around ₦19 trillion annually. The private sector, led by the Nigeria Employers’ Consultative Association (NECA), has also stated it cannot meet these demands, emphasizing a focus on job creation.
The contentious negotiations have led to strikes and a near-economic crisis, including the shutdown of the national grid. In light of these challenges, some politicians, such as former Ekiti State Governor Dr. Kayode Fayemi, have suggested that states should negotiate wages independently from the federal government.
Fayemi, representing the Nigerian Governors’ Forum, argued that states should be allowed to negotiate separately as “fingers are not equal.”
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Fayemi also noted that only a small percentage of the population directly benefits from centralized minimum wage negotiations.
However, the NLC has rejected this decentralization proposal. Adebayo Aribatise, the NLC secretary in Oyo State, expressed concerns that some state governors might misuse this opportunity, potentially disadvantaging workers.
The NLC supports the federal government continuing to set the national minimum wage, with state governors aligning with this agreement. Aribatise emphasized, “The law binds states to pay the national minimum wage.
It is expected that the federal government will continue to set the minimum wage. If not, some governors will continue to do as they like.”
He further warned, “Some governors will bastardize the agreement if we allow it, and junior workers will continue to earn nothing worthwhile.”
