The adoption of a new minimum wage of N30, 000 has necessitated the review of the national revenue sharing formula as demanded by State Governments. According to reports, the Federal Government has therefore resolved to engage the 36 States Governors and the Council of State in a review of the nation’s federal allocation sharing formula.
Nigeria Governors Forum (NGF) had called for a review of the formula as a condition for the acceptance and the implementation of the proposed N30, National Minimum Wage.
Following the National Economic Council (NEC) meeting chaired by Vice President Yemi Osinbajo (SAN), it was gathered that, if agreed upon, the proposed wage would be taken care of as prescribed by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
The NGF had recently sought a new fiscal restructuring plan on the grounds that economic challenges in the States would make payment of the new wage difficult if not impossible in some States.
The Federal Government on 17th January 2019 resolved to engage States Governors and the Council of State in a review of the nation’s federal allocation sharing formula. The review is part of demands by the Nigeria Governors Forum (NGF) prior to its accepting the implementation of the proposed N30,000 National Minimum Wage for Nigerian workers.
Again, the Nigerian Governors Forum (NGF) had recently sought a new fiscal restructuring plan on the grounds that economic challenges in their States would make payment of the new wage difficult. Although the Minimum Wage Tripartite Committee led by the former Head of Service of the Federation, Ama Pepple, had recommended N30,000, the Federal Government agreed to pay N24,000, while the state governments insisted on N22,500.
Reports have it that, on 17th January 2019 during NEC meeting revealed that the Federal Government has decided to take the Governors’ request to the Council of State for a definite resolution on the minimum wage crisis.
Speaking to State House correspondents after the meeting, Minister of Labour and Employment, Chris Ngige disclosed that NEC discussed the matter and agreed to meet members of the Council of State for a unified position.
It can be recalled that, President Buhari recently inaugurated an advisory technical committee for the implementation of the proposed wage. The committee, which was given one month to submit its report, will advise the Federal Government on new sources of funds and ways to implement the initiative in a sustainable manner.
