The Association of Local Government of Nigeria (ALGON) has expressed concerns regarding the proposed N62,000 minimum wage, stating that it could significantly strain the financial resources of local councils. The Federal Government has cautioned organized labor to consider the broader economic implications of demanding an unrealistic increase in the national minimum wage.
Minister of Information and National Orientation, Mohammed Idris, warned that a N250,000 minimum wage could lead to economic instability, mass layoffs, and jeopardize the welfare of Nigerians. Despite President Bola Tinubu’s claim of reaching an agreement on the new minimum wage, labor unions have denied such an agreement.
ALGON President, Aminu Muazu-Maifata, highlighted the challenges LGAs would face in implementing the proposed minimum wage due to existing financial constraints. With most councils struggling to pay the current N30,000 minimum wage, a further increase to N62,000 would be unsustainable.
Muazu-Maifata emphasized the need for a higher percentage of allocation to local government councils to enable them to meet their financial obligations beyond salary payments, should the new minimum wage be approved.
In conclusion, if the N62,000 minimum wage is implemented, local governments may have to seek financial support from state governors and the Federal Government to fulfill their obligations effectively.
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