IT is indisputable that the economy has been weak for close to two years and many Nigerians are undergoing an excruciating cost of living crisis. Inflation, as of November, was at 34.6 per cent, food inflation at 39.93 per cent and the naira is still very depressed.
Against this backdrop, organised labour fought for and won the promulgation into law of the N70,000 minimum wage for Nigerian workers. The new wage was signed into law by President Bola Tinubu in July.
As of November, 14 states and the FCT had yet to implement the law. This is wrong.
Thus, the Nigeria Labour Congress had to direct public servants in the 14 states and the FCT to strike on the issue on December 2.
Between December 2 and now, many of the affected states have committed to paying the minimum wage. As of that date, the strike only took place in the FCT and Nasarawa, Kaduna and Ebonyi. Zamfara has agreed with the workers to start paying by March 2025. The Nasarawa government said it would start payment from December.
By law, every employer is expected to pay. So, the government at all levels should be in the driving seat to ensure the payment. However, it is discomfiting that some state governors are dragging their feet on the law.
Surprisingly, the prevarication is happening when the minimum wage itself is barely enough for poor Nigerians facing an existential financial crisis. When converted to dollars at the current exchange rate, the N70,000 is barely $45 and cannot even buy a bag of rice. The minimum wage in California is $16 (N24,000) per hour for employers with 25 or more employees.
So, it is inexcusable for any government, especially at the state level, with raised monthly allocations from the Federation Accounts Allocation Committee purse, to complain about their inability to pay.
The FAAC reported an income of N3.14tn in November, the highest ever for the three tiers. The three tiers have witnessed an appreciable level of revenue from FAAC after the cancellation of petrol subsidies in May 2023 though inflation has tempered the high receipts.
Rather than default, states should reduce the number of aides and excusable expenditures. Aides feed fat on their states and add to the overhead costs due to a lack of prudence.
Governors should stop junketing around the world looking for elusive foreign investors when all they need to do is create enabling environments to make their states a haven for investors. It is high time all the states embraced fiscal responsibility to make their states economically viable. Putting more money in the pockets of their workers will improve commercial activities in their respective states.
Another issue is that the arrears of the minimum wage need to be paid. The arrears would vary from state to state but their payment is essential because any state that does not pay will be in breach of the law that makes it mandatory for both public and private employers to pay.
The NLC and the Trade Union Congress should continue to monitor the states to ensure that the arrears are eventually paid.
Besides paying the minimum wage, the states need to collaborate with the Federal Government to reduce food inflation, which is eroding the purchasing power of workers.
So far, most collaborative efforts on food security between the states and the Federal Government have been more in palliatives which is like scratching the problem on the surface.
Inflation is not letting up yet and the cost-of-living crisis is still raging. More collaborative efforts need to be made directly to increase food supplies to force down prices.
