Minimum wage delays: Reasons behind governors’ reluctance

June 20, 2024

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Minimum wage delays: Reasons behind governors’ reluctance.

Challenges in Implementing N62,000 Minimum Wage:

Financial Constraints: Many states may require bailouts or layoffs to afford the proposed N62,000 minimum wage due to insufficient allocations post-fuel subsidy removal.
Negotiation Misalignment: The Organised Private Sector (OPS) notes no formal agreement on the wage, citing a convergence of interests rather than consensus.
Governors’ Concerns: Some governors question the feasibility of the N62,000 figure, advocating for a sustainable wage aligned with economic realities.
Regional Disparities: Disparities in revenue allocation post-subsidy removal impact states differently, affecting their ability to meet new wage demands.
Operational Viability: OPS suggests limiting the wage mandate to larger employers, expressing concern over feasibility for SMEs already paying lower wages.