Governors meet over FAAC deadlock, minimum wage

Governors are currently in Abuja to discuss issues that led to the deadlock of the last Federation Accounts and Allocation Committee (FAAC) meeting in Abuja.

The governors also met with Chris Ngige, minister of labour, to discuss the contentious minimum wage implementation as well as the issue of stamp duties which is currently in court.

For the third time in a row, FAAC meeting was deadlocked as state commissioners for finance rejected the revenue put on the table by revenue agencies last week.

FAAC members have resolved not to accept the allocation until a clear system for determining federation revenue was put in place.

In April, the governors set up a three-man committee to investigate the N20 trillion stamp duty which was not allegedly remited to the federation account.

The committee, which is chaired by Ibikunle Amosun, Ogun state governor, has Emmanuel Udom and Abubakar Bello, governors of Akwa Ibom and Niger as members.

On January 15, 2016, the Central Bank of Nigeria (CBN) had issued circular directing banks to deduct N50 stamp duty on every N1,000 deposit made into current accounts.

In 2017, the senate alleged that N20 trillion due to be paid into the federation account from stamp duty charges on bank transactions was withheld.

The senate said projections for stamp duty in 2015, 2016 and 2017 revenue frameworks of the nation’s annual budget were put at N8.713 billion, N66.138 billion and N16.96 billion.

On the minimum wage being proposed by government and labour, the governors are insisting on the staggering of the implementation of the new wage if approved.

The Nigeria Labour Congress is proposing a minimum wage of N65,000 for workers.

The governors are also discussing the last tranche of the Paris Club refund and the states yet to get payment.