Governors under the aegis of the Nigeria Governors’ Forum have said that they can no longer pay the N18,000 minimum wage because of the dwindling oil prices.
After a meeting held in inside the old Banquet Hall of the Presidential Villa, Abuja on Wednesday, the governors concluded that the minimum wage was set at a time when states had enough revenue to afford it.
NGF Chairman, Abdul’aziz Yari of Zamfara State said “We resolved that we must look at ways to enhance revenue generation and at the same time look at ways to cut our overhead costs, more especially the political office holders’ salaries and other overhead expenses.
“The situation is no longer the same compared to when we were asked to pay N18,000 minimum wage, when oil price was $126 (per barrel) and continued paying N18,000 minimum wage when the oil is $41, and the source of government expenditure is oil, and we have not seen prospects in the oil industry in the near future.”
Supporting the NGF position, Governor Abiola Ajimobi of Oyo State told journalists that there was no way the country could continue with a situation where expenditure was more than income.
“We are faced with a situation where we either have to reduce cost through salary reduction or downsize. All these we don’t want to do but prefer to have a roundtable with the President, ministers and economists to look for means of getting out of this problem.”
Meanwhile in a statement by the President and Secretary General of Trade Union Congress, Bala Kaigama and Musa Lawal, the congress disagreed with NGF’s position on minimum wage.
The statement read “One would have thought that the governors would think out of the box to explore the possibility of increasing internally generated revenue through exploration of resources, albeit abundant ones in their vicinity to improve their state resources.
“Furthermore, the time to rethink the exploration of mineral resources being entrenched in the exclusive list is now. We think it is better made concurrent. Here, a review of 1999 Constitution along the line of 1963 Constitution is not out of place.
“In conclusion, Congress wishes to state that it is against the move and will stop at nothing to ensure it does not see the light of the day. The organs of the Congress are going to meet very shortly to prepare for the war declared by the governors against labour and the toiling masses of the country.”
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