Minimum wage: Governors demand new revenue formula

Punch

28 Feb 2011

Minimum wage: Governors demand new revenue formula 

Facts emerged in Abuja on Sunday that Nigerian governors might refuse to pay the new minimum wage.

At their meeting, which was held at Kwara Lodge, Asokoro in Abuja, the governors hinged their readiness to pay the new minimum wage on the review of the existing revenue formula. Under the existing revenue formula, the Federal Government takes 52.68 per cent monthly from the Federation Account while the states are entitled to 26.68 per cent.

The 774 local governments receive 20.60 per cent while oil producing states get 13 per cent as derivation fund. The Senate had approved the payment of N18, 000.00 as minimum wage for Nigerian workers, while the bill has passed second reading in the House of Representatives.

About 25 state governors were at the meeting presided over by the Chairman of the Nigerian Governors’ Forum and Kwara State Governor, Dr. Bukola Saraki. Though Saraki, who briefed journalists after the meeting refused to be categorical on the governors’ stance, THE PUNCH learnt that the governors were vehement in their demand that the current revenue allocation must be amended.