- Rivers, Abia, Sokoto, 12 Other States Yet to Begin Payment Of Wage Award
By Abiola Olawale
The Association of Local Government of Nigeria (ALGON) has expressed its concerns regarding the proposed N62,000 minimum wage, contending that its potential approval may impose undue financial strain on the councils across the country.
The ALGON National President, Aminu Muazu-Maifata who spoke with the press said that it is practically impossible for local governments to implement the proposed N62,000 minimum wage at its level.
According to Muazu-Maifata, several local government administrations are still facing considerable difficulties in meeting the N30,000 minimum wage which was passed during the tenure of former President Muhammadu Buhari.
He pointed out that with the present allocation local governments are receiving from FAAC, the third-tier government in Nigeria can’t pay the N62,000 minimum wage.
He said: “With the present allocation from FAAC, no local government council anywhere in Nigeria can be able to pay N62,000,” the ALGON president said.
“Presently, 90% of our inflow from the Federation Account goes into salaries and pensions. Without an upward review of the percentage of allocation to local government councils, it will be extremely difficult or even impossible for them to pay N62,000 minimum wage.
“The 774 local government councils received slightly above 18 per cent of the total FAAC of the federation, while the federal government received above 52 per cent.
“Some councils could not even afford the N30,000 and are still working on the N18,000. Whatever is coming from FAAC presently, 90 per cent goes into salaries and pensions.
“This tells us that without adjustment and an upward review of the percentage of the allocation coming to local councils, it will be extremely difficult or impossible for local government councils to pay N62,000.”
The New Diplomat reports that this comes days after the Governors of the 36 states of the Nigerian federation had rejected the purported proposal of a N62,000 minimum wage put forward by the Federal Government.
The governors expressed concerns regarding the sustainability of an N60,000 minimum wage, citing potential negative impacts on the country’s overall development.
The governors stated that the implementation of an N60,000 minimum wage or anything above it, would significantly curtail the ability of state governments to allocate funds towards infrastructural development, as the majority of their budget would be directed towards meeting the increased salary obligations of their workforce.
Worse still, reports filtering in on Friday revealed that about 15 states have yet to initiate payment of the approved N35,000 wage increase for federal workers, which was authorized by President Bola Ahmed Tinubu eight months ago.
Tinubu had approved the payment of wage awards for workers as part of policies to relieve Nigerians of economic hardship.
However, checks revealed there about 15 states are yet to comply with the President’s directive while six states initially made payments but ceased doing so after a few months.
States that are not paying include Abia, Sokoto, Rivers, Kastina, Zamfara, Jigawa, Kebbi, Benue, Kogi, and Akwa Ibom among others.
Meanwhile, states that paid wage awards for one to four months and stopped include Delta, Niger, Plateau, Kaduna, Bauchi and Nasarawa.
On the other hand, states that are paying are Lagos, Edo, Bayelsa, Imo, Enugu, Anambra, Ebonyi, Ondo, Osun, Ogun, Oyo, Ekiti, Kano, Kwara, Cross River and Taraba.
The 16 states that are paying the wage award are paying sums ranging from N10,000 to N40,000 to their workers.
