Alex Otti, the governor of Abia State, has clarified that the state government has not received any 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 agreed with the NLC and TUC to pay a N35,000 wage award to federal workers to alleviate the impact of the petrol subsidy removal. This payment is to continue until a new minimum wage is established in 2024.
While some states agreed to align with this federal initiative, others claimed they could not afford to implement it at the state level.
Otti emphasized that reports of states receiving funds to pay the N35,000 wage award are inaccurate. “There have been misleading stories suggesting that the federal government provided funds to state governments for the wage award implementation,” he said. “As of now, Abia State has not received any money from the federal government for this purpose.”
The governor also confirmed that the state has been adhering to the N30,000 minimum wage. “I review the payroll, and I see that no one is paid less than N30,000, which is our minimum wage,” Otti stated. “If there are discrepancies, I urge the accountant-general to investigate because our records show compliance with the minimum wage.”
Addressing concerns about non-compliance, Otti said, “When I read reports of non-compliance in the media, I dismissed them as unfounded. However, if you are raising it here, there might be an issue that needs addressing. I propose a reconciliation between organized labor and the office of the accountant-general.”
Acknowledging the need for an increased minimum wage due to economic challenges like the removal of the petrol subsidy, foreign exchange rate adjustments, inflation, and poverty, Otti expressed the state government’s readiness to implement a new minimum wage once the federal government finalizes its decision.
“We are waiting for the federal government’s lead on this matter, which is why I am closely following discussions between the federal government and organized labor,” he said.
Otti also assured labor leaders that the state government is planning to establish a Ministry of Labour and Productivity to strengthen the relationship between the government and labor unions.
