More tension in brewing in Nigeria’s labour sector over the controversial new minimum wage.
Igbere Tv reports that many of the state governors have come out to declare that the new minimum wage of N30,000 is unrealistic.
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Subsequently, the governor of Ebony state, David Umahi on Wednesday in Abakaliki, declared his government can not afford the new minimum wage, saying that 95 per cent of states in the country cannot pay the proposed N30, 000 to workers.
Umahi, who is the Chairman of the South East Governors Forum, said this while inaugurating a 36-member fact-finding committee to ascertain the mode of workers’ promotion arrears payment in states across the six geo-political zones of the states.
According to Umahi, the payment of the N30, 000 can only be realised if the federation account allocation formula is reviewed to offer more earnings to states.
“The federal government collects 52 per cent of the revenue from the federation account and when I tried to put the N30,000 figure to Local Government Areas (LGA) it means they will borrow N1billion to add to their allocation, in paying salaries.
“I will definitely not be a governor to govern such a state and will never preside over a state that will allocate 100 per cent of its earnings to pay salaries,” he said.