State Governments Can’t Sustain Wage Increase Without Necessary Adjustments – S’West Govs

The South West Geopolitical Zone Governors emphasised that most Sub-National governments need major adjustments to sustain enhanced employee wages and salaries in various aspects of the national economy.

However, they unanimously agreed that workers in Nigeria are entitled to an improved welfare package because the current national minimum wage has become impractical.

At the South-West Zonal Public Hearing held at LTV Ground, Agindingbi, Ikeja, Lagos, on Thursday, the Governor of Osun State, Ademola Adeleke, spoke on behalf of his colleagues.

The event was organized by the Tripartite Committee on National Minimum Wage, chaired by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun.

Adeleke, representing South West Governors in the committee on the proposed New Minimum Wage, highlighted the need for an enhanced welfare package for Nigerian workers due to the current unrealistic minimum wage.

He emphasized the necessity of reviewing the revenue-sharing formula and urged the removal of solid minerals from the exclusive list to bolster states’ financial capacities.

Adeleke encouraged improved worker productivity and expressed Osun State’s support for a new and sustainable minimum wage within available resources, suggesting that individual states negotiate realistic wages with their workers.

Adeleke said, “The committee on the proposed New Minimum Wage was established by the Federal Government, and I was appointed to represent the Governors from the South West Geopolitical Zone.

“In all our meetings and various deliberations, one thing that the committee has been able to establish is that the workers in Nigeria are due for an improved welfare package.

“To this effect, there is a consensus for an upward review of the National Minimum Wage because the existing one has become unrealistic.

“Having said this, it has to be reiterated that the majority of the governments at the Sub−Nationals can hardly sustain an improved wages and salaries for their workers without a significant adjustment in some of the narratives in the national economy.

“I will explain this in the following ways: Review of the Revenue sharing formula: In tandem with the public outcry for the review of the sharing formula for the federation account, the time has come for the federal government to revisit the matter.

“There is an urgent need for the review of existing sharing formulas in favor of states and local governments. I call on the National Assembly through the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) to urgently take decisive action to look at the ratio objectively and realistically.

“Removal of solid minerals from the exclusive list. Every state in Nigeria has been blessed with one form of natural resources or the other. There is a strong appeal to move solid minerals from exclusive to concurrent legislative lists.

“As we offer opinions on minimum wage, I will admonish all workers both in the private sector and public service to improve their productivity. This is a way to ensure the sustainability of the new minimum wage when it is eventually approved.

“Our position from Osun State is that workers deserve improved wages and salaries. Osun state government is in support of a new and realistic minimum wage for all workers within the limit of the available resources in a very sustainable manner.

“While it would be desirable to see that a uniform minimum wage is agreed to on a national basis, it would amount to self-deceit to assume that states have equal ability to pay.

“To this effect, I will humbly advise that individual states would have to negotiate with their workers and agree to a realistic and sustainable minimum wage in line with the available resources.“