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From Left. Zamfara State Governor, Abubakar
Yari; Gov. Abdulfatai Ahmed of Kwara State And Gov. Ifeanyi Okowa of Delta, at
the National Economic Council Meeting in Abuja on Thursday
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The
36 state governors have said that they can no longer pay the ₦18,000
minimum wage that was signed into law in March 2011 by former President
Goodluck Jonathan, owing to the poor state of the economy. Organised labour in
its immediate reaction, however, kicked against the governors’ stance, saying
workers are ready to shut down the country, if the governors push them into it.
Rising
from a crucial meeting that ended at the early hours of yesterday, at the Old
Banquet Hall of the Presidential Villa, Abuja under the umbrella of Nigerian
Governors Forum, NGF, the governors said that dwindling prices of oil had
drastically affected their states’ income.
Specifically,
they said that the burden of the wage was lighter when oil sold at US$126 as
against the current US$41 per barrel.
Vanguard report continues:
They,
therefore, sought audience with President Muhammadu Buhari on the economy,
resolving that the only way out of the quagmire was to diversify the economy
towards agriculture and mining.
Reading
the communique issued at the end of the meeting, Chairman of the Forum and
Governor of Zamfara State, Abdulaziz Yari hinted that the Forum also backed the
Nigerian Communications Commission (NCC) over the ₦1.4
trillion sanction on MTN.
According
to him, the governors agreed that the fine must be paid in full.
He
explained that they received briefing from the Acting Executive
Vice-Chairman/Chief Executive Officer of NCC, Professor Umar Dambata who
explained the matter to them.
He
said: “We resolved that we must look at ways to enhance revenue generation and
at the same time look at ways to cut our overhead costs, especially the
political office holders’ salaries and other overhead expenses.
“The
situation is no longer the same when we were asked to pay ₦18,000
minimum wage, when oil price was US$126 (per barrel) and we continued
paying ₦18,000 minimum wage when the oil price is US$41, while the
source of government expenditure is from oil, and we have not seen prospects in
the oil industry in the near future.
We can no longer pay —
Govs
“We
will diversify our economy in the area of agriculture and mining. But at the
same time, we should understand our situation where some of us (states) today
are taking ₦100 million as monthly allocation and then have salaries of
over ₦2 billion to pay.
“We,
therefore, agreed here to take this suggestion to NEC in our meeting today
(yesterday) so that we can find ways to tackle this problem.
“We
are also looking at coming together to have discussions with Mr. President and
his team, technocrats and experts in the economy to see how we can tackle this
problem. We are working harder to deal with it.
“On
the sanction by the NCC, the MTN has accepted that they committed the offence
and has apologized, and they are appealing for leniency; we the governors forum
decided to support the NCC to abide by the laws of the land and the laws of our
land do not give leniency to deliberate offence to our nation.”
Labour rejects governors’
stance…says we will shut down Nigeria, if…
In
their reaction, leaders of Nigeria Labour Congress, NLC, and Trade Union
Congress of Nigeria, TUC, warned that if the governors wanted workers to shut
down the nation because of the issue, workers would gladly do so, saying “the
governors should not think the Nigerian workers do not have the capacity to
retrench them.”
Factional
President of NLC, Mr. Ayuba Wabba, while insisting that Nigerian workers
totally reject the governors’ position, warned that if the governors wanted organized
labour to close down the country, labour was ready to do so. He confirmed that
the NLC would be meeting today on the platform of the Central Working
Committee, CWC, and the issue would feature prominently after which a statement
would be released.
Wabba
said: “We reject it totally. Nigerian workers will never accept it. We all know
that it is a reality that ₦18,000 can no longer take the workers home
and cannot sustain any family. Many countries are reviewing their minimum wage
upwards to meet the current realities. In Nigeria, there is even greater need
to increase the minimum wage because our currency had been devalued; inflation
keeps rising among others.
“What
is the relation of the Nigerian currency to the Dollar or what is value of the ₦18,000
to the Dollar? We are going to reject the move with all our might. We are not
the cause of the problem. They should think out of the box to find solution to
the problem. When there was excess crude money, the workers did not
benefit and so, we cannot bear the brunt. If the governors want us to close
down the country, we will do that.
“What
about their outrageous salaries, bloated overhead cost, inflated contracts and
others? NLC is meeting tomorrow (today) on the organ of the Central
Working Committee, CWC. This issue is going to feature prominently and we are
going to come with a strong statement on it. Obviously we cannot bear the
brunt. They governors should think how to generate revenue instead of depending
on oil money and allocation from Abuja.
“The
governors should know that the ₦18,000 minimum wage was not just
negotiated, it was a product of a tripartite process involving the governors,
employers and organized labour. It passed through the National Assembly before
former President Jonathan signed it into law. If any party wants to breach or
renege on such agreement, they should be prepared for the consequences.
“We
know there are challenges, but the governors should face reality. The problem
is the cost of governance and too many frivolities. Today, with crazy bills
from electricity providers, increase in fuel price, school fees, hospital bills,
and other utilities, ₦18,000 cannot take any worker to the bus stop. We want to
know their salaries as approved by the Revenue and Fiscal Mobilisation
Commission, that of their commissioners, advisers and others, their security
votes and others.
It’s an empty threat —
Ajaero
Similarly,
his counterpart, Mr. Joe Ajaero, dismissed the governors’ resolution as an
empty threat. He said most of them were ignorant of the process that brought
about the ₦18,000 minimum wage, warning the governors not to start a battle
they could not sustain because Nigerian workers had the capacity to retrench
them.
According
to him: “Well, because of the falling oil prices, sole administrators should be
appointed in the 36 states and Abuja and the office of state governors should
be abolished. The sole administrators should not have one single
commissioner or adviser. They should also not receive any salary or
allowance because we are in a belt-tightening period for us to survive.
The governors should know that the process that brought about the ₦18,000
minimum wage was more democratic than the process that brought most of them to
power. They do not have the capacity to abolish the minimum wage. We are even
planning to present a new proposal for upward review of the wage because, not
only is it due for review, it is also no longer in tune with the socio-economic
reality of the time.
“Do
not forget that the minimum wage is an act that was passed into law by the
National Assembly and signed into law by former President Goodluck Jonathan in
March, 2011. The day the governors say they can no longer pay the ₦18,000
minimum wage, that is the day they should vacate office as governors. They
should not make the mistake that workers have no capacity to retrench them from
office.”
On
his part, Secretary-General of the Trade Union Congress of Nigeria, TUC, Mr.
Musa Lawal, said labour would never accept that and it would be rejected and
resisted with all powers available.
According to him, the
governors cannot say they can no longer pay the minimum wage. “If they
do, we are going to reject and resist it with whatever it takes. Though we will
meet to react appropriately, but we are definitely not accepting it. We are
presenting a proposal for upward review of the wage because it is no longer
meeting the realities on ground. We were planning our meeting for next
month, I am sure because of this development, we will bring it forward.”
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