Published On: Wed, Nov 7th, 2018

States Can’t Pay N30,000 Minimum Wage Unless Sharing Formula Review -David Umahi

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By Sadiq Umar – The governor of Ebonyi state, David Umahi, has called for a review of the nation’s revenue sharing formula as a precondition for the proposed N30,000 minimum wage to workers.

Mr. Umahi said the current revenue sharing formula that allocates 52 percent to the federal government makes it impossible for 95 percent of states in the country to pay the proposed N30,000 minimum wage to workers.

The governor who spoke on Wednesday in Abakaliki, Ebonyi state capital, said the payment of the N30, 000 can only be realised if the federation account allocation formula is reviewed to offer more earnings to states.

According to him, “The federal government collects 52 percent of the revenue from the federation account and when I tried to put the N30,000 figure to local government areas (LGA) it means they will borrow N1 billion to add to their allocation, in paying salaries.

“I will definitely not be a governor to govern such a state and will never preside over a state that will allocate 100 percent of its earnings to pay salaries,” he said.

He urged the country’s leaders and labour to liaise and decide on the percentage of the federation account that should be voted for salaries and other sectors.

“We should determine how much should be allocated to education, health, infrastructure among others if 100 per cent of earnings are used to pay workers salaries,” Umahi said.

“Many states are experiencing various problems and cannot pay salaries but the people condemn their governments over their inability to provide good roads and other amenities.

“People don’t understand the problems being experienced by these states and the governors have kept quiet for long and need to speak presently.”

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