- By Bellis Kweta
In light of the newly approved N70,000 minimum wage by President Bola Tinubu, which was also recently passed into law by the National Assembly, Senior Advocate of Nigeria Yusuf Ali has advocated for the autonomy of states in negotiating wages with their employees. Ali’s call aligns with the principles of federalism, emphasizing the need to account for economic disparities between states to avoid adverse outcomes such as job losses and financial strain on less affluent states.
Ali pointed out that a uniform national minimum wage fails to consider these disparities, underscoring the necessity for a more flexible approach that allows states to set wages based on their financial capabilities and economic conditions.
This perspective echoes sentiments from the Southern Governors’ Forum, which has also expressed a desire for states to negotiate wages independently. However, this proposal has met with resistance from labour unions. The Nigeria Labour Congress (NLC), represented by its Head of Information and Public Affairs, Benson Upah, argues that allowing states to set their own minimum wages could lead to disparities in workers’ pay and conditions across different regions. Upah emphasized that a fair minimum wage is crucial for economic justice, social stability, and national cohesion.
In an interview with News Men, Ali stressed the importance of aligning wage negotiations with Nigeria’s federal structure. He argued that each tier of government, which employs its own workers, should have the flexibility to set wages according to their financial capabilities. He stated, “We have to consider the type of government we run. We all claim that we are running a federal system. In a truly federal system, the parts should have the liberty to negotiate with their workers.”
Ali concluded by highlighting the need for a sustainable solution that does not lead to job losses, emphasizing that wage-setting capabilities are influenced by various factors, including the economy and state priorities.
