We can’t pay N62,000 Minimum Wage–774 Local Govt Chairmen cry out
The raging controversy over the proposed new minimum wage remains unabated.
Yesterday, Chairmen of the 774 local governments said they would not be able to pay N62,000.
They dismissed the N250,000 proposal by organized labour as unaffordable.
N62,000 is the proposed amount as agreed to by the Federal/State Governments and the Organised Private Sector (OPS) at the conclusion of negotiations by the Tripartite Committee.
Speaking through 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 were meagre.
Muazu-Maifata, who spoke on a 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 percent of the total revenue accruing to the Federation Account, while the Federal Government receives more than 52 percent.
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.”
