Southern Governors Advocate for State-Specific Minimum Wage Negotiations

Governors from the southern part of Nigeria, under the aegis of the Southern Governors’ Forum, have called for a more flexible approach to the new minimum wage, taking into consideration the cost of living and each state’s ability to pay. This call was made in a communique issued at the end of their meeting held on Monday, June 25, 2024, in Abeokuta, the Ogun State capital. The Forum emphasized the importance of allowing individual states to negotiate the new wage with labor unions to ensure fair and sustainable wage policies.

In the communique, the Southern Governors underscored the diverse economic conditions across the states, arguing that a one-size-fits-all minimum wage could place undue strain on states with lower revenue. They proposed that each state be granted the autonomy to set wages that reflect their unique economic circumstances, thereby promoting fiscal responsibility and ensuring that workers receive fair compensation without jeopardizing state finances.

Strengthening Fiscal Federalism and Devolution of Powers

The Southern Governors’ Forum also used the opportunity to call for the strengthening of fiscal federalism and the devolution of powers. They expressed concern over current practices where mineral licenses are issued and explorations undertaken without the involvement of state governments. The Southern governors highlighted that such practices have led to criminal activities, environmental degradation, and a lack of revenue sharing with the states and the federal government.

The communique noted that excluding states from the process of issuing mineral licenses has significant negative impacts, including ecological damage and economic losses. The Southern governors stressed the need for a more inclusive approach that would see state governments play a central role in managing their natural resources. This, they argued, would not only help curb illegal mining activities but also ensure that the benefits of resource extraction are more equitably distributed.

Advancing Energy Transition and Infrastructure Development

Recognizing their region’s status as the economic and industrial hub of Nigeria, the Southern Governors highlighted the critical need to address inadequate power supply. They called for the implementation of the recent constitutional amendment that allows states to regulate, generate, transmit, and distribute electricity. Additionally, the governors resolved to embark on an aggressive energy transition plan, moving from fossil fuels to cleaner energy sources like Compressed Natural Gas (CNG) and Electric Vehicles (EVs).

The meeting also addressed the urgent need for infrastructure development, specifically the rehabilitation and reconstruction of Trunk A roads. The governors called on the Federal Government to transfer some roads to states willing to take them over for better management. They commended President Tinubu for initiating the construction of the Lagos-Calabar Coastal Road, which spans eight states in the region, and emphasized the importance of such projects in boosting regional connectivity and economic growth.

Southern Governors to Launch Regional Multimodal Transport Master Plan

The recent communique released by the governors has revealed a significant step towards enhancing regional connectivity and economic development in the Southern States. The Southern governors have resolved to commission a comprehensive regional multimodal transport master plan. This ambitious plan aims to prioritize the seamless connectivity of rail, road, air, and water transportation systems. By doing so, the initiative seeks to facilitate interstate and intra-regional movement of people, goods, and services, significantly enhancing the ease of doing business within the region.

The proposed transport master plan is set to be a game-changer, addressing longstanding challenges in transportation infrastructure and logistics. Improved connectivity is expected to not only boost trade and investment opportunities but also foster socio-economic development across the Southern States. The initiative underscores the commitment of the governors to create a more integrated and efficient transportation network, which is crucial for sustainable growth and development.

Southern States Development Agenda (SSDA) to Drive Economic Prosperity

In a bid to foster trade and investment, the communique further announced the establishment of the Southern States Development Agenda (SSDA). This new body will comprise a dedicated team tasked with outlining a holistic plan aimed at promoting sustainable growth, economic prosperity, social harmony, and food security within the region. The SSDA is expected to work in close collaboration with individual State Investment Promotion and Facilitation Agencies, the Nigeria Investment Promotion Commission (NIPC), and other relevant ministries, departments, agencies, and multilateral organizations.

The creation of the SSDA signifies a strategic move to coordinate development efforts across the Southern States, ensuring that resources are efficiently utilized and development projects are effectively implemented. By working hand in glove with key stakeholders, the SSDA will play a crucial role in harmonizing regional development initiatives, attracting investment, and creating an enabling environment for businesses to thrive. This collaborative approach is essential for achieving the overarching goal of economic prosperity and sustainable development.

Advocacy for State Police and Commitment to Regional Unity

Addressing security concerns, the governors reaffirmed their commitment to advocating for the creation of State police. This resolution is backed by the notable success of regional community-based security outfits, which have proven effective in intelligence gathering and maintaining peace and order. The governors emphasized the importance of a structured and coordinated approach to intra-region trade, partnerships, and investment facilitation, highlighting the strong bonds of enterprise, resilience, and culture that unite the people of the South.

The communique also commended President Tinubu for his efforts in providing food palliative support to states and implementing economic recovery reforms through the Renewed Hope Agenda. The Southern governors pledged their support for these initiatives, recognizing their potential to reposition the country and build a greater future for all. Additionally, the Southern Governors forum appointed Prince Dapo Abiodun as the Chairman and Professor Charles Chukwuma Soludo as the Vice Chairman, ensuring capable leadership to steer the forum’s activities. The communique concluded with a resolution to hold quarterly meetings, rotating among member states to foster continuous dialogue and cooperation