The Trade Union Congress (TUC) has unveiled plans to introduce a mechanism that would penalize state governments failing to implement the revised minimum wage. TUC President, Festus Osifo, disclosed this strategy during an interview on Channels Television's Politics Today show.
Under this proposed sanction, the Federation Account Allocation Committee (FAAC) would directly disburse funds to workers in states where governors neglect to adhere to the agreed-upon minimum wage, endorsed by labor unions, federal and state governments, as well as the organized private sector.
Osifo emphasized the inadequacy of the current minimum wage of N30,000, asserting that it no longer meets the needs of Nigerian workers. He lamented the non-compliance of some governors with the existing wage structure, which is set to expire in April, five years after the enactment of the Minimum Wage Act of 2019.
Both the Nigeria Labour Congress (NLC) and the TUC have consistently urged the government to expedite the review process for wage awards. In January, the Federal Government constituted a 37-member Tripartite Committee on National Minimum Wage to recommend a new minimum wage.
While the TUC proposed N447,000 monthly per worker, the NLC advocated for N794,000. Osifo justified these demands by highlighting the impact of inflation on workers' cost of living. He pointed out that state governors now receive significantly higher monthly FAAC revenue allocations, as reported by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
Despite discrepancies in reported figures, Osifo stressed the substantial increase in FAAC allocations to states, emphasizing that this affords governors the capacity to meet the proposed wage demands. He urged governors to be proactive in utilizing these resources for the welfare of public servants and encouraged them to explore additional revenue streams beyond federal allocations.
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