S’West Governors: Sustainable Minimum Wage Increase Requires Vital Adjustments

S’West Governors: Sustainable Minimum Wage Increase Requires Vital Adjustments

The Governors of the South West Geopolitical Zone have underscored the challenges faced by state governments in sustaining increased employee wages without essential adjustments across various sectors of the economy……READ ALSO Governor Bago’s Gesture: Mixed Reactions As Niger State Governor Kneels Before President Tinubu (Photo)

During a South-West Zonal Public Hearing held at LTV Ground, Agindingbi, Ikeja, Lagos, Governor Ademola Adeleke of Osun State, speaking on behalf of his counterparts, stressed the necessity for an improved welfare package for Nigerian workers, considering the current impracticality of the national minimum wage.

The event, organized by the Tripartite Committee on National Minimum Wage chaired by Minister of Finance and Coordinating Minister for the Economy, Wale Edun, provided a platform for deliberations on the proposed New Minimum Wage.

Adeleke advocated for a review of the revenue-sharing formula and the removal of solid minerals from the exclusive list to enhance states’ financial capabilities. He emphasized the need for increased worker productivity and suggested that states negotiate realistic wages with their employees within available resources.

Governor Adeleke stated, “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.”

He highlighted the challenges faced by sub-national governments in sustaining enhanced wages without significant adjustments in the national economy, including the urgent need for a review of revenue-sharing formulas and legislative changes regarding solid minerals.

While expressing support for a new and sustainable minimum wage, Adeleke emphasized the importance of negotiations between individual states and their workers to ensure realistic and feasible wage agreements.

The governor concluded, “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.