Minimum wage: Workers differ, govs want revenue sharing reviewed
Governors have demanded a review of the revenue allocation formula to enable them to implement the proposed national minimum wage.
Governors Ademola Adeleke (Osun), Bala Mohammed (Bauchi), Caleb Mutfwang (Plateau), AbdulRahman AbdulRazaq (Kwara), and Mohammed Bago of Niger state, stated this during the zonal public hearing on the national minimum wage on Thursday.
They insisted that the current revenue allocation must be reviewed in favour of states to empower them to meet the workers’ expectations.
Currently, the Federal Government gets 52.68 per cent; states 26.72 per cent and local governments 20.60 per cent of the federation account.
However, speaking during the meetings held simultaneously in Lagos, Kano, Enugu, Akwa Ibom, Adamawa and Abuja, workers in states proposed various figures as a living wage, referencing the current economic crunch and the high costs of living.
The public hearing was meant to receive stakeholders’ inputs which will be considered by the 37-member Tripartite Committee on the New National Minimum Wage set up by President Bola Tinubu on January 30.
Presenting the position of the South-West governors at the public hearing in Lagos chaired by Mr Wale Edun, the Minister of Finance and Coordinating Minister of Economy, and a member of the Tripartite Committee, Adeleke, called for an urgent review of the revenue-sharing formula to favour the state and local governments.
The Osun governor, while urging the Federal Government to move the control of solid minerals from the exclusive list to the concurrent legislative list, insisted that the states should be allowed to negotiate with their workers’ pay
He stated, “It has to be reiterated that the majority of the government at the sub-nationals can’t sustain and improve wages and salaries for their workers without a significant adjustment in some of the narratives in the national economy.’’
Clarifying further, the governor insisted that the revenue-sharing formula should be reviewed in tandem with the public outcry for the allocation of more resources to states.
He noted, “The time has come for the Federal Government to revisit the matter in favour of states and the local governments. I call on the National Assembly through the Revenue Mobilization Allocation and Fiscal Commission to urgently take decisive action to look at the ratio objectively and realistically.
“Removal of solid minerals from the exclusive list. Every state in Nigeria has been blessed with one form of natural resources or the other. There is a strong appeal to move solid minerals from exclusive to concurrent legislative list.’’
Bauchi gov
Expressing a similar sentiment as Adeleke at the public hearing in Yola, the Bauchi governor called for the review of the current sharing formula, as according to him the “majority of the Nigerian people live in the states.”
Mohammed noted with concern that “the hardship in the country is tangible. Nigerians are suffering, Nigerians are looking at us, Mr. President.’’
The Plateau State Governor, Mutfwang, who spoke at the North-Central zone public hearing held in Abuja, said more resources have to come from the federation account to cushion the economic realities in the state, adding that the state government was also seeking ways of increasing internally generated revenues.
Without additional or improved allocation, his state, he said, would not be able to shoulder higher wages.
Represented by the Permanent Secretary, Establishment and Labour Relations, Anastasia Dongju, Mutfwang stated, “We are going to get more allocations to the state because we do not have the means to actualise the submission.
“On our own, we have also made efforts to see how we can improve our revenue generation. We have also made recommendations on the issue of penalties and sanctions given to those defaulters.’’
Speaking on behalf of the Kwara state governor, the Chief of Staff, Prince Abdulkadir Mahe, said his state may consider the new minimum wage while advising the Nigeria Labour Congress and the Trade Union Congress “To understand that the more the government spends on salaries and wages, the more other sectors suffer.’’
“The state government may consider the minimum wage based on its financial capacity,’’ he emphasised.
The Head of Service, Niger State, Abubakar Salisu, who spoke on behalf of Governor Bago, also aligned with the other governors.
“Our submission is not far-fetched from the realities on the ground. As a government, we are not mindful of the hardships in the country. The state government will flag off an agriculture resolution to ensure food security. We need support in terms of allocations,” he declared.
In their different proposals on the minimum wage, the NLC asked the South-West states to pay N794,000 as the TUC mentioned N447,000.
On the other hand, workers in the Federal Capital Territory demanded N709,000, while their counterparts in the North-West clamoured for N485,000.
Citing the losses recorded in the recent financial report filings, the Manufacturers Association of Nigeria urged the Federal Government to give them a soft landing through tax waivers to prevent job losses in the sector.
Speaking through the chairperson of the Lagos State chapter of the NLC, Funmi Sessi, the labour union in the South-West said the N794,000 wage demand was jointly agreed on by the union members in the zone.
The labour union said its position was informed by the removal of fuel subsidy, which it noted had led to the recent increase in the cost of living such as transport, electricity, feeding, transport, social well-being and others.
Meanwhile, the chairman of the Lagos State Chapter of the TUC, Gbenga Ekundayo, said the N447,000 minimum wage demand was based on the devaluation of the naira, the rising cost of living and the fuel subsidy removal.
He added that the position had been adopted nationwide and agreed on by the members of the union across the geopolitical zones, while also calling for an annual review of the national minimum wage as against the current five-year renewal.
Tax waiver
Also, the Human Resources Director of Nigerian Breweries, Mrs Omo-Lamai Grace, who spoke for MAN, sought tax waivers as palliatives for manufacturers that recorded losses due to the naira devaluation.
Grace, who also spoke through Tayo Adelaja, said, “It has been very tough for members of MAN, but we are very hopeful that as this discussion gets along, the interests of the manufacturers will be considered in arriving at what the living wage is.
At the North-Central zone hearing in Abuja, the workers demanded N709,000 as the new national minimum wage.
In attendance at the session was the Head of the Civil Service of the Federation Dr Folasade Yemi-Esan, Deputy Governor of Niger state, Yakubu Garba, the Kwara State governor represented by his Chief of Staff, Prince Abdulkadir Mahe as well as the representatives of about 15 organisations.
The NLC Chairman, FCT chapter, Stephen Knabayi, noted that N709,000 was suggested as the minimum wage to cushion the economic hardship on workers.
But the Nasarawa State TUC Chairman, Mohammed Doma and his counterpart in FCT, Amaoge Chukwudi, suggested N447,000 minimum wage, adding that buses should also be provided for workers in the state.
Umar said, “We are suggesting N447,000 as the new minimum wage and we want buses to be provided and released to states to convey workers to their places of work. This new minimum should be implemented by the three tiers of government.
“Our refineries should be made to function. The government should initiate policies aimed at mass production.”However, the Federal Civil Service Pensioners demanded that 85 per cent of the minimum wage should be paid as pensions.
Its National Chairman, Sunday Omezi, who faulted their exclusion from the tripartite committee, said, “We are not happy that pensioners are not part of the tripartite committee to decide their minimum pension.
“We have recommended that pensioners should be given 85 per cent of whatever workers are being paid. As we are getting older, we need a lot of medication.”
In his presentation, the President, the Medical and Dental Consultant Association of Nigeria, Prof Mohammad Mohammed, recommended said the workers should not be paid less than N440,333.33.
He said ‘consequential adjustment’ should be included in the approved minimum wage.
Commenting on the proposed sanctions for non/implementation of the minimum wage by some governments, the Chairman of the Zonal Committee and TUC President, Festus Osifo, said tougher measures would be taken against defaulters.
“We will try to put in place very strong sanction and punitive measures to ensure that once passed into law, it is implemented across the states.
“Stiffer sanctions /penalties will be met. We are going to push as much as possible, but you should recognise that states have some level of autonomy,” Osifo said.
Meanwhile, the President of the NLC, Joe Ajaero, has advocated a proper market survey before reaching a consensus on the new national minimum wage.
This comes as workers in Taraba and Gombe states proposed N60,000 as the new national minimum wage.
Workers in Bauchi and Adamawa states, however, demanded a 50 per cent increment in the current N30,000 wage.
On their part, workers in Borno and Yobe states resolved to accept the final proposal of the presidential tripartite committee on the National Minimum Wage.
Ajaero, who presided over the North-East public hearing in Yola, described the current minimum wage as “a starvation wage.”
He argued that determining a consensus on a new wage would amount to a waste of time without first “hearing from the market.”
On his part, Taraba state Governor, Ahmadu Fintiri, who spoke through his deputy, Prof Kaletapwa Farauta, noted that no amount would be enough for the Nigerian worker, given the current hardship in the country.
During the South-South session, the workers in the region proposed N850,000 naira as the new minimum wage for workers.
The Chairperson of NLC, Akwa Ibom State council, Sunny James, called for the withdrawal of the operational licences of any private organisations that defaulted.
But the Secretary of Akwa Ibom state TUC, Kinsley Bassey, pegged the wage at N450, 000.
On his part, the TCNMW Chairman, Mr. Adewale-Smatt Oyerinde stressed that the committee was interested in receiving well-researched position papers that would aid in making informed decisions.
Oyerinde represented by the Chairman of the National Association of Small Medium Enterprises, Mr Nnoron Theophilus, assured that the diverse opinions gathered from both private and public sectors would help to impact the livelihood of the citizens.
In his remark, Governor Umo Eno promised to pay the new minimum wage once approved.
The governor represented by the Head of Service, Mr. Effiong Essien noted that within one year in office, he had paid workers entitlements to the tune of N14.7 billion.
On its part, the NLC proposed N485,000 as the new national minimum wage for workers in the North-West zone, ‘’considering the dynamics of the national economy.’’
The presentation was made by the Kano State Chairman of the NLC, Kabir Inuwa, on behalf of the workers in the zone.
Speaking at the opening ceremony of the zonal hearing, the Kano State governor represented by his Deputy, Abdulsalam Gwarzo, commended President Bola Tinubu for setting up the committee.
He assured that the state will commit itself to the new minimum wage when it becomes effective while restating the government’s commitment to the welfare of the workers through the prompt payment of salaries.
The Katsina State Commissioner for Information, Dr Bala Zango, said the state government would abide by the outcome of the meeting.
Speaking earlier, the Chairman of the North-West Public Hearing, Dr Ahmed Rabiu, urged all participants to express their views openly, share their experiences and provide constructive suggestions.
Like their colleagues in other zones, the stakeholders in the South-East have proposed N540,000 as the living wage for workers as the governors in the region boycotted the hearing held in Enugu.
The participants further proposed that the minimum wage be reviewed every two years irrespective of the economic situation in the country, insisting that any governor who failed to implement it should be removed from office for violating the law.
Speaking on behalf of the NLC, TUC, the Nigerian Medical Association and the civil society organisations, the Enugu State chairman of the NLC, Fabian Nwigbo, mentioned that the minimum wage should remain in the exclusive legislative list ‘’so that no governor can tamper with it.’’
He disclosed that the workers considered the prices of goods in the country before coming up with the amount.
He also lamented that to date some states had yet to pay some of their workers the N30,000 minimum wage.
“Today, we are appealing to the leaders of this country to give us something close to what we can use to subsist.
“Having looked at the daily expenditure of a family of six members (father, mother and four children), we looked at their daily meal to be a mere N2000 per person, which is N12,000 per day and N360,000 per month”, he said.
Speaking on behalf of the other South-East states, the Enugu state chairman of the TUC, Ben Asogwa, proposed N447,000.
He expressed disgust over the failure of the Southeast governors to send representatives to the public hearing.
Earlier, the zonal chairman of the committee and governor of Anambra State, Prof Chukwuma Soludo, who was represented by the Deputy President of the TUC, Dr Tommy Etim, urged the workers to speak out.
