The 2011 National Minimum Wage Act Controversy and Trade Dispute in Nigeria: Problematizing Nigeria’s Fiscal Federalism

Abstract

The 2011 National Minimum Wage Act raised serious controversy and debate in Nigeria thereby problematizing the nature and structure of Nigerian federalism and fiscal federalism. By adopting qualitative method of analysis, the study concludes that, one, the trade unions’ insistence on uniform national minimum wage scale hinders the enforcement of the National Minimum Wage Legislation, and two, variation in revenue profile of states in Nigeria impedes implementation of National Minimum Wage Act 2011 by some state governments. Following from the above, the study made some recommendations prominent among which are, one, amendment of some sections of the Nigerian Constitution necessary for ‘true’ (fiscal) federalism; two, restructuring of the structure of Nigerian federalism anchored on the principle of viability; three, allowing states to have their own minimum wage and wage structure based on their ability to pay and the subsisting cost of living or living wage.

Keywords: Minimum wage, trade union, trade dispute, federalism, fiscal federalism, revenue and Nigeria