Governors Must Set Aside Money for Minimum Wage Arrears, Labour Insists

The President of the Trade Union Congress (TUC), Comrade Festus Osifo, has urged the 36 state governors to start saving funds to pay arrears of the new minimum wage when it takes effect.

Comrade Osifo gave this advice during a meeting with executive members of the Kogi State government, led by former Chairman of the Nigeria Labour Congress (NLC) and Special Adviser to the governor on Labour Matters, Comrade Onu Edoka, at the TUC headquarters in Abuja.

Responding to Comrade Edoka’s statement that Kogi State is currently paying the N30,000 minimum wage, Osifo emphasized the importance of preparing for the new minimum wage. He expressed confidence that the new wage act would be passed by the National Assembly and assented to by the President by the end of July or early August.

“We are not focusing on the ₦30,000 minimum wage anymore because we expect a new minimum wage act to be in place soon. We urge all states to prioritize saving funds to meet the new wage obligations once the act is implemented,” Osifo said.

He highlighted the importance of states preparing for the new wage to improve workers’ conditions amidst the current economic challenges, noting that Nasarawa State has already started setting aside funds for this purpose. Osifo appealed to Kogi State to make this a priority as well.

Osifo also commended Kogi State for paying salaries promptly, noting that this practice supports the local economy by enabling workers to purchase goods and services. He encouraged other states to follow suit and to ensure the implementation of the new minimum wage.

He called on the President and the National Assembly to expedite the process of passing the new national minimum wage. Labour unions have proposed ₦250,000, while the government and organized private sector have suggested ₦62,000. Osifo urged all parties to reach a consensus quickly.

Earlier, Comrade Edoka reported that the Kogi State government has cleared all backlogs of salaries and pensions, emphasizing Governor Ahmed Usman Ododo’s commitment to workers’ welfare. Edoka noted that salaries are paid promptly by the 24th of each month, and pensions are fully paid at both state and local government levels. Additionally, the state has implemented a 35% hazard allowance for health workers, a six-month health insurance scheme, and improved salaries for local government workers.