The governor of Abia, Alex Otti says the state government has not gotten funds from the federal government for the implementation of the N35,000 wage award.
Otti made this statement during a meeting with the Nigerian Labour Congress (NLC), Trade Union Congress (TUC) and the Joint Negotiating Council in Abia.
On October 5, 2023, the federal government reached a consensus with the NLC, and TUC to pay N35,000 wage award to federal workers to soften the effect of petrol subsidy removal.
In the same vein, the federal government agreed to continue payment of the wage award pending when a new minimum wage will arrive in 2024.
Since then, a number states agreed to align with the federal government wage award plan and do that at the state level but other states said they can’t afford it.
According to Governor Otti, the report of states getting funds to pay workers N35,000 wage awards is spurious and wrong.
“There has been misleading stories all over the place that the Federal government gave monies to the state governments for the implementation of the wage award,” he said.
“Last time I checked, there were no such monies. This state has not received a dime from the Federal government to implement any wage award.”
The Abia governor added that the government has been implementing the N30,000 minimum wage as the state’s payroll indicates.
“I see the payroll and I didn’t see anyone that is paid less than N30,000 and that is the minimum wage,” the governor said.
“Maybe something is wrong and I will like the accountant-general to please look into that because what is available to me shows we are complying with the minimum wage of N30,000 and that the least paid worker is actually paid N30,000.
“When I read in the media that we are not complying, I took it as a hatchet man’s job but you repeating it here means something is wrong somewhere.
“I will like that a reconciliation happen between the organised labor and the office of the accountant general.”
Nevertheless, Otti said there is a need for the minimum wage to be increased as a result of the economic concerns such as the removal of petrol subsidy, foreign exchange rate adjustments, inflation, and poverty.
The governor restated the state government’s eagerness to implement the new minimum wage immediately after the federal government finalised its decision on the matter.
“We don’t want to move ahead of the Federal Government, so that’s why I’m showing keen interest in discussions between the Federal government and the organised labour at the center,” he said.
Otti then assured the labour leaders that plans are ongoing to create a ministry of labour and productivity to further enhance the relationship between the government and labour.
He explained that the ministry would play a crucial role in addressing labour concerns more efficiently.