Minimum wage: Governors to downsize workforce

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Nigerian governors are considering another option if the N30,000 minimum wage finally comes to fruition.

The governors may sack some civil servants to pay others who are retained.

At their emergency meeting in Abuja on Wednesday night, the governors asked the Federal Government to also accede to the review of the national revenue allocation formula.

The Chairman of the Nigeria Governors’ Forum who is also the Governor of Zamfara State, Abdulaziz Yari, who read the communiqué after the meeting, said

that a new committee would be raised to meet with President Muhammadu Buhari over the issue.

He said the committee would work out another formula towards quickly resolving the problem associated with the proposed minimum wage.

Yari said,

“Following a meeting of the Nigeria Governors’ Forum where we deliberated on the national minimum wage, governors resolved to re-strategise and

put together another committee to meet with the President once again, to work out another formula towards quickly resolving the problem associated with

the proposed N30.000 minimum wage which is impracticable unless labour agrees to a downsizing of the workforce

all over the country or the Federal Government itself accedes to the review of the national revenue allocation formula.

“Members of the committee who were nominated to see the President include the governors of Lagos, Kebbi, Plateau, Bauchi, Akwa Ibom, Ebonyi, Enugu and Kaduna.”

The federation account is currently being managed on a legal framework that allows funds to be shared under three

major components – statutory allocation, Value Added Tax distribution; and allocation made under the derivation principle.

Under statutory allocation, the Federal Government gets 52.68 per cent of the revenue shared; states, 26.72 per cent; and local governments, 20.60 per cent.

The framework also provides that Value Added Tax revenue be shared thus; FG, 15 per cent; states, 50 per cent; and LGs, 35 per cent.

Similarly, extra allocation is given to the oil producing states based on the 13 per cent derivation principle.

Yari said that he and his colleagues had seen the report of the Tripartite Committee report presented to President Muhammadu Buhari.

The committee, which is headed by Amal Pepple, recommended N30, 000 as minimum wage.

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