The Nigeria Governors’ Forum (NGF) has rejected the proposed N60,000 minimum wage, stating that it is not sustainable and would lead to economic strain on state governments.
In a statement released on Friday, the NGF acknowledged the need for a new minimum wage and sympathized with Labour Unions’ demands for higher wages.
However, the forum stressed the importance of considering the broader implications of such an increase, including consequential adjustments across all cadres, including pensioners.
READ ALSO: FG, Labour Resume Minimum Wage Talks
The NGF warned that signing an unsustainable agreement would have dire consequences, with many states forced to spend their entire FAAC allocations on salaries, leaving nothing for development purposes.
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It cautioned that some states may even need to borrow to pay workers’ salaries.
Instead, the NGF urged all parties to consider the socioeconomic variables and settle for a sustainable, durable, and fair agreement that takes into account the legitimate claims of all segments of society to public resources.
The NGF’s stance may potentially stall negotiations between Labour Unions and the government, as the proposed minimum wage remained a contentious issue.
