Local Government Areas chairmen, under the umbrella of Association of Local Governments of Nigeria (ALGON) have said cannot be able to pay the N62,000 proposed by the government committee.
ALGON’s rejection of the N62,000 minimum wage comes after Nigeria Governors Forum (NGF) had said they would not be able to pay any minimum wage above N60,000.
Recall that the Tripartite Committee on New Minimum Wage submitted a minimum wage of N62,000 to President Tinubu for approval. Despite organized labour’s disapproval of the N62,000 proposal, President Tinubu on Wednesday, June 12, in Democracy Day speech, said what was agreed by the minimum wage would be forwarded to the National Assembly in the “coming week”.
ALGON National President, Aminu Muazu-Maifata, on Thursday, June 13, said no local government administrator would be able to pay local government staff the proposed N62,000 minimum wage.
Aminu said most of the local council area chairmen have not been able to pay the 2019 approved N30,000 minimum wage. He said most local government chairmen are only paying the Goodluck Jonathan administration’s approved N18,000 minimum wage.
The current chairman of Lafia Local Council Area of Nasarawa State said council chairmen can only pay the N62,000 minimum wage if the federal allocation to the council increases.
Aminu said 90 percent of allocations to the council areas from the federal government go to payment of salaries and pensions of staff and retirees of the council areas.
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Speaking on Politics Today, Aminu said, “Presently, 90 percent 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 N62,000 minimum wage.”
“The 774 local government councils received slightly above 18 percent of the total FAAC of the federation, while the federal government received above 52 percent.
“Some councils could not even afford the N30,000 and are still working on the N18,000. Whatever is coming from FAAC presently, 90 percent goes into salaries and pensions.”
Aminu said the demand by labour for N250,000 minimum wage may not be realized and cannot be paid by council areas administrators. He said there must be upward adjustment of what the federal government gives to local council areas as allocation for N62,000 to be paid.
This tells us that without adjustment and an upward review of the percentage of the allocation coming to local councils, it will be extremely difficult or impossible for local government councils to pay N62,000, Muazu-Maifata added.
