The multiple controversies surrounding the proposed new minimum wage are not letting up. Adding to it is the pronouncement by the chairmen of the 774 local governments that they are unable to pay N62,000 as minimum wage.
The chairmen dismissed the N250,000 proposal by organized labour as unaffordable. Speaking through the Association of Local Governments of Nigeria (ALGON) chairman Aminu Muazu-Maifata, said local government cannot pay the wage due to financial constraints. He said the allocation to the local governments from the Federation Account was meagre.
Muazu-Maifata, who spoke on national television, said: “With the present allocation from the Federation Account, no local government council in Nigeria can afford to pay N62,000.” He pointed out that local governments receive only slightly above 18 per cent of the total revenue accruing to the Federation Account, while the Federal Government receives more than 52 per cent. He stressed: “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 a N62,000 minimum wage. Muazu-Maifata, who is chairman of Lafia Local Government, Nasarawa State, appealed for understanding and assistance from higher authorities, noting that local governments would have to turn to governors and the Federal Government for financial augmentation if a new minimum wage law is enacted.
Muazu-Maifata said councils perform multiple functions beyond salary payments, adding that these obligations should be considered when determining an affordable and sustainable minimum wage.
