FG Urged to Allocate FAAC Allocations of Defaulting States Directly to Workers as Minimum Wage

The Trade Union Congress (TUC) is urging the Federal Government to redirect Federation Account Allocation Committee (FAAC) allocations directly to workers in states failing to meet minimum wage obligations.

TUC President, Festus Osifo, emphasized this during an interview on Channels Television’s Politics Today.

Osifo highlighted plans to incorporate a clause in the new minimum wage framework to penalize state governments failing to implement the revised minimum wage.

He stated, “We’re proposing a mechanism within the new minimum wage negotiations to enforce compliance. If a new minimum wage is approved;

“…there should be repercussions for non-compliant governors, such as redirecting their FAAC allocations directly to workers instead of channeling it to the states.”

Osifo underscored that the current N30,000 minimum wage is insufficient to sustain the average Nigerian worker’s livelihood.

Expressing concern that not all governors are adhering to the current wage structure, Osifo noted the impending expiration of the current wage award in April, five years after the Minimum Wage Act of 2019 was signed into law by former President Muhammadu Buhari.

He emphasized the impact of inflation on the cost of living for Nigerian workers and pointed out that state governors have the financial capacity to pay public servants up to N447,000 monthly, considering the increased monthly FAAC revenue allocation by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).

Addressing discrepancies in reported FAAC figures, Osifo clarified, “According to FAAC, the three tiers of government shared N1.15 trillion last month, not N2 trillion.”

Osifo urged state governors to demonstrate responsiveness, citing the substantial growth in revenue accruable to states from the Federal Account, primarily attributable to exchange rate fluctuations.

He stressed, “With the significant increase in state revenue, governors should be capable of doing much more. Nigeria is endowed with resources, and governors must exhibit proactive leadership.”

The Minimum Wage Act of 2019 mandates a review every five years to align with prevailing economic conditions.

Both the Nigeria Labour Congress (NLC) and TUC have repeatedly urged President Bola Tinubu’s administration to expedite the upward review of wage awards.

In January, the Federal Government established a 37-man Tripartite Committee on National Minimum Wage tasked with recommending a new National Minimum Wage.

While the TUC proposed N447,000 as the new monthly minimum wage per worker, the NLC advocated for N794,000 per worker.