States need fiscal discipline to pay minimum wage, says NECA

The Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, has said that with increased Federation Account Allocation Committee (FAAC) allocations to state governments, no governor should complain of inability to pay the N70,000 minimum wage.

Oyerinde said this during an appearance on a television programme, arguing that state governments have been sufficiently supported by the Federal Government to implement the N70,000 minimum wage, and therefore do not have any justifiable reason not to pay the new wage.

The NECA boss advised that if state governors do not comply with the new minimum wage, the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) would need to adjust their approach to ensure payment.

He dismissed the claims that some states might lack the financial resources to pay the N70,000, emphasising that the new minimum wage is a permanent law.

“We have moved away from the context of hope; the reality now is what we should face. The reality for all stakeholders, whether at the federal, state, or local government, is that N70,000 has come to stay, and everybody should align with the law, except those who are exempted.

“The issue of having funds to pay the N70,000 also does not arise because it is no longer hidden that the Federal Government has been consistently supporting the state governments,” he said.