Minimum Wage: Southern Governors’ Forum advocates benchmarks based on states’ capacity

Governors from the southern part of Nigeria, under the aegis of the Southern Governors’ Forum, have called for the consideration of the cost of living and the ability of each state to pay in reaching an agreement on the new minimum wage.

They also advocated that each state negotiate the new wage with the labour unions.

The position was contained in a communique issued at the end of their meeting in Abeokuta, the Ogun State capital.

In the 16-point communique, the Forum called for strengthening fiscal federalism and devolution of powers and expressed concern over current practices where mineral licences are issued and explorations undertaken without recourse to state governments.

It noted that issuing mineral licences without carrying the states along has resulted in criminal activities, attendant negative environmental impact, and ecological degradation, with no remediation commitment or revenue accruing to the states or the Federal Government.

The governors maintained that being the economic and industrial region of the country, there was a need to address the inadequate power supply in the region by taking advantage of the recent constitutional amendment that now allows states to regulate, generate, transmit and distribute electricity whilst also considering optional sources like renewables.

The southern governors said they have resolved to aggressively embark on an energy transition plan from fossil fuels (petrol and diesel) to cleaner energy, specifically Compressed Natural Gas (CNG) and ultimately Electric Vehicles (EVs), to help reduce the cost of transportation, which would lower the cost of food, goods and services for the citizens and residents.

The meeting also called on the federal government to rehabilitate, repair, and reconstruct Trunk A roads and transfer some of them to states that have expressed interest in taking them over.

It applauded President Bola Tinubu for conceptualising and commencing the construction of the Lagos-Calabar Coastal Road, which cuts across eight states of the region.

The communique hinted that the governors have resolved to commission a regional multimodal transport masterplan that would prioritise connectivity of rail, road, air and water transportation to facilitate interstate, intra-regional movement of persons, goods and services, thereby enhancing the ease of doing business.

It further stated that the Southern States Development Agenda (SSDA) would comprise a team whose primary responsibility is to outline a holistic plan to foster trade and investment, sustainable growth and development, economic prosperity, social harmony and food security for the region.

The development agenda, the governors added, would work hand in hand with individual state investment promotion and facilitation agencies, the Nigeria Investment Promotion Commission (NIPC), and other relevant MDAs and multilateral agencies as necessary.

On the issue of state police, the governors resolved to continue to advocate the creation of state police against the backdrop of the success of the regional community-based security outfits, which have been effective in intelligence gathering.

The governors, the communique further stated, resolved to remain united and committed to oneness of purpose, ”noting that the physical boundaries that divide the people of the south could not be compared to the strong bonds of enterprise, resilience and culture that they share just as they have resolved to be deliberate about intra region trade, partnerships and investment facilitation and promotion, which was agreed would require a structured and coordinated collaborative approach.”

The members of the Forum commended Mr Tinubu for the food palliative support to states and the laudable economic recovery reforms and policies through the implementation of the Renewed Hope Agenda.

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They pledged to support him in his unwavering resolve to reposition the country and build a greater future for all.

It would be recalled that at the end of the meeting, Ogun State governor, Dapo Abiodun, was chosen as the new chairman of the Forum, while Charles Soludo, the governor of Anambra State, was appointed vice chairman.

The communique concluded that quarterly meetings of the Forum would be held and rotated among member states.

However, the Forum paid respect to its immediate past chairman, the late Oluwarotimi Akeredolu, with condolences extended to his family.