Minimum Wage: Governors Make New Demand
The demand for a new minimum wage by the Nigeria Labour Congress has taken a new twist.
State governors have asked for a review of the nation’s revenue-sharing formula if they must pay the proposed N30,000 new minimum wage.
It was gathered that governors renewed their demand at Thursday’s meeting of the National Economic Council held at the Presidential Villa in Abuja.
The meeting, which was presided over by Vice-President Yemi Osinbajo, resolved to refer the matter to the National Council of State for more consultations, especially with the call for a review of the revenue-sharing formula.
Recall that an extraordinary meeting of the Federal Executive Council presided over by President Muhammadu Buhari had earlier on Tuesday asked the NEC to look into the controversial wage issue.
The NEC is comprised of state governors and some key Ministries, Departments and Agencies of government. It is chaired by Osinbajo.
It was at the Thursday meeting, the NEC could not finalise the matter, forcing the referral to the National Council of State.
An official privy to the NEC meeting, said, “We are making progress; we will be meeting with the Council of State on Tuesday, January 22.
“The governors are asking for a review of the revenue-sharing formula and government is looking at that.
“The Minimum Wage Technical Advisory Committee that was inaugurated recently is looking into the revenue-sharing formula.”
The source declined to offer additional details, saying the NEC did not mandate him to speak.
Under the current sharing formula, the Federal Government takes the lion’s share of 52.68 per cent from the Federation Account. The 36 states take 26.72 per cent, while the balance of 20.60 per cent is given to the 774 local governments in the country.
Over time, the formula has generated controversies and remains a key factor in the clamour for true federalism or restructuring.
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