A Senior Advocate of Nigeria has advocated for greater autonomy for states in negotiating wages with employees, emphasizing this as a key principle of federalism. This call comes in the wake of President Bola Tinubu’s recent approval of a minimum wage increase to N70,000, which was also passed into law by the National Assembly.
The Advocate argued that a uniform national minimum wage fails to consider the varied economic realities of different states, potentially resulting in negative outcomes such as job losses and increased financial pressure on less prosperous states. This sentiment aligns with the perspective expressed by the Southern Governors’ Forum, which has previously pushed for independent wage negotiations by states, reflecting the ongoing debate regarding regional autonomy versus national unity within Nigeria’s federal structure.
In contrast, labour unions have strongly opposed the move for state-level wage negotiations, arguing that it may create discrepancies in employee compensation and working conditions across the nation. The Nigeria Labour Congress has voiced concerns that allowing governors to set minimum wages independently undermines the principle of a guaranteed wage and could jeopardize workers’ welfare and the overall stability of the national economy.
A representative from the Nigeria Labour Congress stated, “Ensuring a fair minimum wage is not only about economic justice; it is vital for maintaining social stability and national cohesion.” They added that seeing workers’ salaries as mere charity is detrimental to the economy, as it disregards the essential role that fair wages play in driving economic activity.
In an interview, the Senior Advocate underscored the importance of framing wage negotiations within the context of Nigeria’s federal system. He stressed that each level of government has the responsibility to employ workers and should possess the flexibility to establish compensation that aligns with their financial capacity.
He stated, “In a truly federal system, the components should have the liberty to negotiate with their workers. The ability to pay salaries is affected by various factors, such as the economy and state priorities. We must find a viable, sustainable solution that does not result in job losses.”
