Nigerian governors will eventually reduce the federal minimum wage of N18,000 or downsize because of the current economic crunch, the chairman of the body of governors has said.
The chairman of the Nigerian Governors Forum and Zamfara state governor, Abdulaziz Yari, said on Thursday that irrespective of public condemnations of the plan, it would not be economically feasible to retain the same workforce and pay same amount of money.
According to him, funds allocated from the Federation Account could no longer sustain the expenses of the state as the internally generated revenue was still below par in some states.
Governors had two weeks ago declared that they could no longer cope with the N18, 000 minimum wage. The pronouncement caused a stir as Nigerians kicked against it.
The governors of Rivers and Edo rejected the plan.
Emerging from a meeting with President Muhammadu Buhari at the State House Abuja, on Thursday, Mr. Yari said the governors were considering the nation’s economic situation.
“Let me make it very clear to Nigerians, governor’s forum is not the enemy of labour in any way. Rather, we have been working together. But what we are saying, (because not only Gov. Wike but also my friend in the comradeship, Adams Oshiomhole, kicked against the decision)…
“What we said is that when the National Assembly enacted the law of paying N18, 000 minimum wage, then the oil was about $118 per barrel and today where we are oil is $41 per barrel.
“So, if it continues like that definitely we will find it difficult to continue. We have to sit down with the labour and see how we can review; either continue or downsizing, or see what we are going to do.
“We want to find a solution because we have to be realistic that we have so many things to touch. There is infrastructure deficit, there is need for security, there are other things like social lives of our people and nation as a state,” he said.
The governor said from the federation account, some states received N400 million, N500 million while others received N55 million.
“And there are other issues, not even the salary, their pension is over a billion. So, how can we continue borrowing and servicing the service aspect of our expenditure, or overhead. How can we do that?
“We are telling the public that we are planning to sit down with the president and his team and the state governors as a team and the experts to come out with the way forward and how we are going to handle the poor state of the economy in the country.
“But what we have on ground now will not be realistic if it continues the way it is without having other sources from the economy and still relying on oil that is being sold for $118 dollar per barrel and now down to $41 and think that we can continue behaving or misbehaving the way we are doing, if there is anything like that,” he added. Click to signup for FREE news updates, latest information and hottest gists everyday
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The problem is that most state especially the northern States keep a lot of ghost workers that do not contribute anything to the financial and productive bottom line, most of which are house wifes that only visit the bank at the end of the month. How will the governors pay salaries in this situation?
ReplyDeleteThat is also have they registered under aged voters
DeleteAll is in the name of lining their pockets in billions at the expense of the citizenry.
ReplyDeleteWhy not slash the huge financial benefits of the political class to cover up for the Nigerian pissants sorry to say?
ReplyDeleteGhost workers! Who fixed their names in the payroll, is it not the same Governors (who are the ghost workers) and other politicians? Is it the common man?
ReplyDeleteSo will the governors and senators and legislators have there enormous salaries cut as well or will they work for free. Only then wld they be on the fair part of getting rid of the minimum wage
ReplyDeleteThe problem is mismanagement of money. The minimum wage is for the lowest paid workers. I do not expect all or majority of workers to be on minimum wages.
ReplyDeleteInstead of targeting the lowest paid workers, salary review should be across the workforce. Deal with ghost workers.
don't mind them they are thieves, just looking for ways to reap more money into their pocket selfish stomach infrastructure governors, care much after their own self interest and care less of the citizen
ReplyDeleteThat is the Change Nigerians want now they are getting it.
ReplyDeleteFELLOW NIGERIANS IS THIS THE CHANGE YOU VOTED FOR. I dey laugh. Ha Ha Ha Ha. Change for the worst. More terrible things are coming
ReplyDeleteOkorohausa is ready to decorate the state with 600m for xmas and he can't pay 18k minimum wage, I feel sorry for Nigerains.
ReplyDeleteA more realistic approach to this problem is for the Governors to look into other areas of reducing unnecessary overhead expenditure. Let them look into the areas of Ghost Workers! There are quite a number of them, particularly in the newly created States. A huge sums of funds could be saved from that aspect. Another realistic approach is my voluntarily reducing the salaries and allowances of key officers such as the Minsters, Permanent Secretaries, Political Aides and others. It goes without saying that each State must learn to diversify its economy and give agriculture and other essential projects laudable supports in order to generate enhanced revenue and reduce costs considerably. I know these devices would work and achievable if closely monitored and implemented.
ReplyDeleteplease why wont the governors cut their salaries and allowances if they are sincere? I sincerely pray that organized labour will not seat to listen to their lies talk less of accepting to allow them tamper with the minimum wage that is not even enough for the workers where it is even paid.
ReplyDeleteThis is ridiculous and unacceptable. Their allowance should be cut first and not the minimum wage to be affected
ReplyDeleteIt should start from them
Is this the change you guys promise Nigerians? is really a shame, it like APC pay a deaf ears to the lamentation of the people with the hardship they introduce to Nigerians
ReplyDelete