Minimum wage: Final outcome to reflect true fiscal federalism – South West Governors

 

COMFORT EKELEME, Business Editor and Ibrahim Quadri ,Lagos

 

Lagos State Governor, Mr Babajide Sanwo-Olu on Monday emerged as the chairman of the South-West Governors Forum.

 

The former Governor of Ondo State, late Arakunrin Rotimi Akeredolu was the chairman of the Forum before his death.

 

The Forum which met at the Lagos House, Ikeja condemned the agitation for Yourba nation.

 

On the ongoing negotiation between the government, Organized Private Sector, OPS and labour union, the Forum believes the outcome will reflect true fiscal federalism.

 

The Forum directed the zone Commissioners for Agriculture to meet and set up a working template to ensure collaboration based on each State’s comparative advantage.

 

In attendance were Governors Lucky Aiyedatiwa (Ondo), Dapo Abiodun (Ogun), Seyi Makinde (Oyo), Ademola Adeleke (Osun), Sanwo-Olu (Lagos) and Biodun Oyebanji (Ekiti).

 

Sanwo-Olu, who was flanked by other govenors read the Forum’s  communique shortly after their meeting.

 

The South-West Governors Forum is the umbrella body for all the six governors in the geo-political zone.

 

The close-door meeting which started 12noon lasted for more than three hours.

 

The communique read, “The Forum unanimously nominated and adopted the Governor of Lagos State, Mr. Babajide Sanwo-Olu as its Chairman.

 

“The Forum paid its last respects to its late Chairman of the South West Governors’ Forum, Arakunrin Oluwarotimi O. Akeredolu, SAN, CON, and also congratulated the new Governor of Ondo State, H.E Hon. Lucky Orimisan Aiyedatiwa, also for winning the All Progressives Congress’s (APC’s) Governorship ticket for the next election.

 

“The Governors adopted Ise wa fun ile wa as South West Anthem.

 

“The meeting commends the House of Representatives and South West Caucus for their efforts at passing the South West Development Commission Bill and looks forward to its speedy passage by the Senate.

 

“The meeting commends Mr. President, H.E. Bola Ahmed Tinubu, GCFR on the groundbreaking of the Lagos-Calabar Coastal Road, the proposed Lagos to Sokoto road and encourages the Federal Government to rehabilitate other Federal roads in the region.

 

“On security, the Forum commends the relative peace in the South West region and notes the collaboration between all security agencies and the Amotekun Corps. It reaffirms its full support for State Police.

 

“On Food Security, the Forum acknowledges the efforts of the Federal Government and decides that the Honourable Commissioners for Agriculture of all the States should begin to meet and set up a working template, which will ensure collaboration based on each State’s comparative advantage.

 

“On Minimum Wage, the Forum supports the efforts of the Federal Government, the Nigeria Governors’ Forum (NGF) and the Organised Private Sector on their ongoing conversations with the Labour Union. We believe the outcome will reflect true fiscal federalism.

 

“The Forum also encourages Federal Government’s efforts on mineral resources exploitation. There should be further collaboration between the Federal Government and States, especially in granting leases to investors.

 

“The Forum condemns in strong terms the group of people agitating for Yoruba nation.

 

“The Forum agrees to strengthen the DAWN Commission on operational efficiency and charges the Commission to focus on economic integration, cooperation and investment promotion of South West States. To that end, each State is mandated to appoint a State focal person.”

.Labour won’t resume strike Tuesday—Ajaero

 

However, The Nigeria Labour Congress (NLC) has declared organised labour will not resume strike tomorrow (Tuesday) to further press the government for increase in minimum wage paid workers in the country.

NLC President, Joe Ajaero disclosed this on Monday at a labour conference organised by the International Labour Organisation in Geneva, Switzerland.

Organised labour had relaxed for one-week the indefinite nationwide strike declared last Monday to allow continuation of negotiations.

Both the NLC and Trade Union Congress, TUC had declared an indefinite nationwide strike, midnight of June 2, in protest against non-conclusion of national minimum wage fixing and non reversal of hike in electricity tariff.

Labour relaxed the indefinite strike, following the resolution by the federal government to offer more than the N60,000, it put forward to the tripartite committee.

The government had tabled a N62,000 minimum wage to labour, following renewed negotions. However, labour had insisted on N250,000.

But speaking in Geneva yesterday, Ajaero ruled out labour will resume the strike on Tuesday, stressing that organised labour is waiting for the pronouncement of President Bola Tinubu on the matter.

“The tripartite committee submitted two figures to the President. Government and employers proposed N62,000 while labour proposed N250,000. We are waiting for the decision of the President. Our National Executive Council (NEC) will deliberate on the new figure when it is out.

“We cannot declare strike now because the figures are with the President. We will wait for the President’s decision. During the tenure of the immediate past President, the figure that was proposed to him was N27,000 by the tripartite committee but he increased it to N30,000.

“We are hopeful that this President will do the right thing. The President had noted that the difference between N62,000 and N250,000 is a wide gulf,” Ajaero said.

 

.As LCCI urges NLC, TUC to be flexible, consider ability to pay

Following the ongoing negotiations regarding a new national minimum wage, the Lagos Chamber of Commerce & Industry (LCCI) have urge all parties to consider a wage that reflects a good balance of economic realities, affordability, and sustainability.

 

LCCI in a statement signed by it’s  Director General Chinyere Almona, said the nation can avoid a situation where a wage is forced on government and businesses, which will eventually lead to job losses, worsened poverty levels, and so much money chasing few goods.

 

The Chamber said, “Therefore, we call on labor to be more flexible, reconsider the government’s offerings, and be concerned about how private businesses can afford to pay the set wage without considering shutting down operations or cutting jobs.

 

“Beyond the new minimum wage, the Chamber is more concerned about having a more productive economy with a robust infrastructural base supporting a economy,” the statement said.

 

 

The Chamber further stressed the need for the government to implement special non-cash interventions that will see businesses spend less on production.

 

According to LCCI, the government should remove the import duties on food imports and critical raw materials and drastically reduce the import duty exchange rate on agricultural input and other imports that have multiplier effects on prices.

 

“The government should implement an aggressive metering programme on power supply, and more investment and regulation in the sector to boost power supply through more contractual discipline and gas supply guarantees.

 

“The government should build infrastructure to support local production of essential medicines and more spending to upgrade our public health facilities.

 

 

“With the government’s commitment to providing these support systems to Nigerians, low-income earners will spend less on these expenditure heads and have a better living standard in the long run.

 

“The labour unions should consider labour productivity supported by infrastructure rather than high wages with weak productivity. The government needs to spend more on providing the infrastructural base required for a productive workforce and a conducive business environment,”LCCI said.

 

The Chamber further noted that the federal government’s proposals represent a significant increase aimed at improving the livelihood of workers across Nigeria, adding that it is imperative to acknowledge the fiscal constraints and economic challenges various state governments face.

 

“Some governors under the Nigerian Governors’ Forum have already indicated their inability to meet the initially proposed higher minimum wage, citing budgetary limitations and the potential risk to essential public services.

 

“We urge all parties to consider a wage that is within the financial capacity of both federal and state governments, will help maintain economic stability, and prevent potential layoffs or cuts in essential services. It is also pertinent to adopt a wage that supports long-term economic sustainability.

 

“Over-extending financial commitments could increase borrowing and debt, adversely affecting the nation’s economy. All states can uniformly implement the new minimum wage by agreeing to a realistic and achievable wage, ensuring that workers nationwide benefit without significant delays or discrepancies.

 

“A wage demand exceeding state governments’ capacity could lead to industrial actions, strikes, and widespread disruptions, further hindering economic recovery and growth,” it stated.

 

Also, the Chamber noted that the government needs to show more seriousness about cutting down the cost of governance and be committed to investing more in layers of infrastructure that support productivity and revenue generation.

 

With more transparency in government spending, LCCI maintained that future negotiations will become easier as all parties are well aware of the realities.

 

“We also call on the government to commit to having the national minimum wage reviewed every five years. The government can show concern about personnel welfare by enhancing their allowances beyond the minimum wage, which is only calculated based on basic salaries.

 

“We call on the labour unions to consider the interests of the broader business community in their demands and be more flexible in negotiations. We call on all parties to work towards a new national minimum wage that promotes a fair deal to all concerned and for the overall interest of society,” LCCI maintained.