Governors cannot afford to pay new minimum wage

The ability of governors to pay the new minimum wage would depend on a new revenue formula, Rivers State Governor, Chibuike Amechi, said on Friday.

Amechi, the new Chairman of Nigeria Governors Forum (NGF), said governors might not be able to pay the minimum wage because the present monthly revenue allocation is hardly enough for effective administration of the states.


The governor said states that receive about N2.5 billion from the federal government were expected to pay about N4 billion to workers as minimum wage.

Amechi said the governors “cannot pay what you [they] do not have.” “We are willing to pay, but they are trying to see how much they can negotiate with the federal government on issue of revenue allocation so that they can have more money to be able to pay,’’ he said.

“If you receive N2.5 billion as monthly allocations, where will you get N1.5 billion to add to pay the new minimum wage?”

Amechi said governors had agreed to partner with President Goodluck Jonathan, the Revenue Mobilisation and Fiscal Allocation Commission, and the National Assembly in driving the change in revenue allocation formula.

“It is a bit challenging but I think that when we meet with the president, the National Assembly and the Revenue Mobilisation and Fiscal Responsibility Commission we will find a solution,’’ he said.
The NGF had organised a six-man committee headed by Lagos State Governor, Babatunde Fashola, to look into the minimum wage. The report of the committee was submitted and adopted by the 36 state governors. Amechi said the report would be implemented soon.

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