N70,000 Minimum Wage: Governors Set Up Implementation Committees

Following President Bola Tinubu’s signing of the N70,000 Minimum Wage Law, some state governors have set up implementation committees on the new pay.

However, others have resolved to wait for the Nigeria Governors Forum (NGF’s) position, just as some said they could pay without retrenching workers.

For instance, in Kwara State, Governor AbdulRahman AbdulRazaq has approved the constitution of a tripartite committee to work out the consequential adjustment component for other categories of workers.

“This comes as a new national minimum wage has been pegged at N70,000, triggering a need for consequential adjustments for senior cadres of workers in the state,” the governor’s chief press secretary, Rafiu Ajakaye, said.

The committee comprises representatives from the state government, the labour centres, and the organised private sector.

It is chaired by the Head of Service and co-chaired by the commissioner for finance, while the director (Establishment and Pension) is the secretary.

Other members of the committee are the commissioners for budget and planning, works and transport, local government and chieftaincy affairs, and Communications; the senior adviser and counsellor to the governor; the permanent secretaries (Finance, Service Welfare, Justice); and the senior special assistant to the governor on labour matters.

Apart from the federal controller on labour and employment, the sector is represented on the committee by the chairman of the Nigeria Labour Congress, the chairman of the Trade Union Congress (TUC), the chairman of the Joint Negotiation Council (JNC), the chairman of COHESU, and the secretary of the JNC.

The Kwara Chamber of Commerce (KWACCIMA), the Manufacturers Association of Nigeria (MAN), and the Nigerian Association of Small and Medium Enterprises represent the private sector.

On the cost implications of implementing the new minimum wage, a top government official said, “We need to wait for the report of the tripartite committee set up by the governor to know the details of what it will cost the government to implement the new minimum wage for its workers.”

In Plateau State, the commissioner for information and communication, Hon. Musa Ashoms, told our correspondent that those who know the state’s financial status are seriously examining the situation to ascertain whether the State government will be able to pay the new minimum wage.

He said, “If we can pay or there is contrary reason, the state government will engage the general public or civil servants to inform them about it.

When asked about the state’s salary expenditure when the minimum wage was pegged to N30,000, Ashoms said the state spent N2.9 billion monthly as of then.

He also explained that increasing the minimum wage to N70,000 would cost N5.9 billion monthly.

The commissioner further hinted that the state’s monthly allocation from the federation account is N7 billion.

Ashoms said ultimately, what remains is just N2 billion, which will not be able to service other projects or payments of counterpart funding, among other things.

He also disclosed that the state government is not considering retrenchment, adding, ‘’As it stands today, it is currently conducting recruitment exercises in government-owned tertiary institutions and MDAs.

The Imo State government says it is willing to pay the N70,000, according to the commissioner for information, Hon. Declan Emelumba, while interacting with LEADERSHIP Weekend.

He said they had established a mechanism to shore up funds for implementing the new minimum wage.

According to him, the total emolument of workers’ salaries fluctuates regularly due to promotions and retirement.

Emelumba highlighted  that as a responsible and responsive government, they don’t intend to retrench workers but rather motivate them for optimal productivity.

The Zamfara State government says the adoption of a new minimum wage can only be decided after a meeting of the state governors.

The director-general (DG) of media and communications in Government House, Gusau Malam Nuhu Salihu Anka, told LEADERSHIP Weekend in a telephone interview that Zamfara recently adopted and signed into law the N30,000 minimum wage and started payment in June.

“The decision of whether to adopt the N70,000 minimum wage for the respective states in the country can be revealed only after the governors’ meeting, which is expected to be held soon,” he said.

On the issue of the cumulative amount spent on salaries, he said there is no specific amount, but sometimes most of the monthly allocations received from the federal allocation go on salary payments.

Governor Nasir Idris has said that Kebbi State is still waiting for a response from the Nigeria Governors’ Forum on implementing the new wage.

He assured workers in the state that he is ready to implement whatever the federal government decides.

LEADERSHIP WEEKEND gathered that before this development, the government spent over N 1 billion on payment of salaries monthly.

However, if the new wage of N70,000 is implemented, the state may have to request additional federal subvention to meet the desired demand, he said.

Ekiti State government has expressed readiness to pay the new wage.

The information commissioner, Hon. Taiwo Olatunbosun, who stated this while speaking with LEADERSHIP in Ado Ekiti, said Governor Biodun Oyebanji, would not disappoint Ekiti workers on the issue of the new wage.

“He had not disappointed them, particularly in ensuring the welfare, wellness, and well-being of the entire state population and the workforce. I believe that discussions, consultations, and many other interfaces are ongoing among the stakeholders at the national and sub-national levels,” he said.

On whether the state needs more federal allocation to pay the new wage, he said, “Every government all over the world can only achieve much with the availability of resources, and I believe resources to meet the needs of the people can never be enough.”

He said that is why the government of Ekiti is working assiduously to develop the state so that it can generate resources without burdening the people.

“Whether we like it or not, we would wish we had more resources, and we are working around that , and that is why the state is collaborating with develop partners for the development of our agricultural interventions,  variables that will attract the youths to participate more, support the businesses of micro, small and medium enterprise businesses so that the economy of the state, particularly in the area of agriculture products to make food available to the people and to attract investors to the state.

“All these are geared towards ensuring that the economy is improved and to generate additional resources apart from what we get from the federation account.

“I believe the governors at the Federal Economic Council (FEC) and at the Nigeria Governors’ Forum (NGF) are discussing various issues, and I am very sure that having more resources will be one of those things they will be discussing. But Ekiti is working towards having more resources, and it won’t be a bad situation to have more of them.”

He said the state government would not retrench workers because of the new minimum wage.

Taraba State Governor Agbu Kefas said he is ready to pay any salary the federal government settles on for civil servants.

“I am ready to pay whatever minimum wage bill the federal government signs into law for civil servants. Kefas stated.