Only Lagos Can Afford N30,000 Minimum Wage – Governors
By Wisdom Peter,
Report brought to Brainnewsradio, has it that the 36 states Governors under the support of Nigeria’s Governors Forum(NGF) met last night in Abuja saying that only Lagos State can afford the new minimum wage of N30,000 for its workers.
According to report from The Vanguard, The Governors also resolved to downsize, if they must pay the new minimum wage.
The Governors resolved to send another delegation to the President, Muhammadu Buhari, in the people of Lagos State Governor, Akinwumi Ambode; Atiku Bagudu of Kebbi State, Simon Lalong of Plateau State; Mohammed Abubakar of Bauchi State; Udom Emmanuel of Akwa Ibom State; Dave Umahi of Benue State; Ifeanyi Ugwuanyi of Enugu State; and Nasir El-Rufai of Kaduna State(of whom are the committee members), to canvass their stand on the new minimum wage.
The Governors, though agreed with the policy of the minimum wage increment, were uncomfortable, as most states would not be able to meet the demands, and therefore would lead to bankrupt, so the only way states would be able to pay the N30,000 minimum wage is to either downsize their workforce or the federal Government agrees on a new revenue allocation formula.
Chairman of the NGF, who is Governor of Zamfara state, Abdulaziz Yari, spoke for the Governors at the end of the meeting, saying governors resolved to “re-strategize and put together another committee to meet the President to once again to work out another formula towards quick resolution of the problem associated with the proposed N30,000 minimum wage.”
According to report, the Zamfara Governor, Yari, in his statement, stated that it is impracticable for governors to pay the new minimum wage unless labour agrees to a downsizing of the work force all over the country.
Yari continued speaking, referring now to Buhari’s last meeting with the Tripartite committee and the endorsement of the committee’s proposal saying, “We have seen what has been presented to the President by the committee. As a member of the committee, governors (representative) said the committee did not take our submission of N22,500 because it came late.”
He spoke on, saying, “I am surprised how you can do this without the input of the states, because the states are the key stakeholders in this business.
“In a situation where our report is not taken or considered by the tripartite committee in its report to the President, I don’t know how the committee expects us to work.
“But we still say we want to pay but the issue is the ability to pay. I don’t know how this formula will come and I don’t know how we can get solution to the issue.
“We are not able to N18,000 today. When the President assumed office, 27 states were not able to pay; not that they choose not to pay, now you say N30,000. How many of them can pay? We will be bankrupt.
“So, as Nigerians, we should look at the issues seriously. While other people are saying governors are flying jets and living in affluence, that one is not luxury but compulsory.
“Put together, the issue of government overhead cost with personnel cost still cannot solve this problem.
“Like Lagos that is paying about N7 billion as salaries, if you say it should pay N30,000, now it will be N13 billion.
“From our calculation, it is only Lagos State that will be able to pay N30,000. As Nigerians, this is our country, there is no other country we have and we should be fair to this country. “As for the way forward, we will continue to talk with Labour, let them see reasons governors have difficulties.
“Some of us have IGR. For instance, the money Lagos State is using to pay is not coming from Abuja. They have a way of getting their money from IGR and that is why they can afford to pay. They get money through VAT.
“Apart from Lagos, even Rivers cannot afford to pay. So, we have been crying out about this since 2011 but no one cared to listen.
“One critical example is that some states ration their salaries, while some others put everything they earn on the table and ask labour to come and see and ask them to suggest how much should go for capital and personnel cost.
“Some say 70% for personnel cost and 30 %for capital projects and yet the states cannot pay and they put the remaining as outstanding.
“If you are talking about oil, the price is not what it used to be. From last year to date, it is $20 less, from $75 to $55 dollars. So, where is the money to pay?
“We should not exploit this matter further. We are leaders today, tomorrow others will be. So, let’s look at this matter seriously to see how we can do it properly. It is our primary responsibility to see that everybody is happy.”
It is reported that the organised labour warned that any attempt to delay or truncate the agreed N30, 000 national minimum wage would have a devastating effect on the country.