A Senior Advocate of Nigeria, Yusuf Ali, has cautioned that a uniform national minimum wage could lead to job losses and financial strain on less affluent states. He argues that the current system does not account for economic disparities between states and suggests that states should have autonomy in negotiating wages with their employees, aligning with federalism principles.
Ali’s comments come after President Bola Tinubu approved a new minimum wage of N70,000, which was also passed into law by the National Assembly. However, the Southern Governors’ Forum has expressed a desire for states to negotiate wages independently, highlighting the tension between regional autonomy and national cohesion in Nigeria’s federal system.
Labour unions oppose this move, arguing it could lead to disparities in workers’ pay and conditions across states. The Nigeria Labour Congress emphasizes that a fair minimum wage is essential for economic justice, social stability, and national cohesion.
Ali emphasizes the importance of aligning wage negotiations with the federal structure, allowing each tier of government to set wages according to their financial capabilities. He stresses that a solution is needed that is workable, sustainable, and does not lead to job losses.