Despite minimum wage agreement, 20 states reduce their 2020 budgets by N733bn
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Despite minimum wage agreement, 20 states reduce their 2020 budgets by N733bn

- Twenty states including the FCT reduced their 2020 budgets cumulatively by N733bn

- This raised concerns about the states' intention to pay the new minimum wage

- A total of 16 states including Lagos, Cross Rivers and others increased their 2020 budgets cumulatively by N855 billion

Twenty states of the federation have slashed their 2020 budgets, despite the agreement on the payment of N30,000 minimum wage in 2020, an analysis by Daily Trust has indicated.

Recall that the federal government had finalised the new minimum wage agreements with the organised labour, leaving states to meet with the respective labour leaders in their states to discuss their peculiarities.

Though the report stated that the affected states slashed their budgets in line with the prevailing economic realities, the reduction in the budgets raises concerns over how they intend to pay the new minimum wage.

Meanwhile, barely 48 hours to the expiration of the December 31, 2019 deadline issued by the Nigeria Labour Congress to states to complete all negotiations regarding the new minimum wage, only Lagos, Kaduna and Kebbi have reportedly presented their offers.

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Labour also said that out of the three states that released their minimum wage offers, only Lagos state's offer was accepted, stating that the other two were rejected for being inadequate.

It added that only about six state governments are currently negotiating with their respective state chapters of the NLC while over 20 others have yet to begin negotiations with the labour union.

The cumulative reduction by the 19 states and the FCT amounted to N733 billion which is reportedly 16% decrease.

On the contrary, 16 states increased their 2020 budgets cumulatively by N855 billion, 19.9% increase.

Despite minimum wage agreement, 20 states reduce 2020 budgets by N733bn

20 states reduce 2020 budgets by N733bn. Source: Daily Trust
Source: UGC

Note that the analysis of the 2020 budgets' total does not capture any figure for Bayelsa state.

The 20 states that reduced their 2020 budgets:

1. Abia (N141-N136bn)

2. Adamawa(N224-N183bn)

3. Akwa Ibom (N673-598bn)

4. Anambra (N157-N137bn)

5. Bauchi (N199-N167bn)

6. Benue (N200-189bn)

7. Borno (N145-N144bn)

8. Delta (N390-N389bn)

9. Edo (N184-N179bn)

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10. Imo (N251-N197bn)

11. Ekiti (N130-N125bn)

12. Niger (N195-N148bn)

13. Jigawa (N160-N153bn)

14. Oyo (N285-N213bn)

15. Ondo (N194-N138bn)

16. Kebbi (N151-N138bn)

17. FCT (N243-N232bn)

18. Kano (N220-197)

19. Nasarawa (N191-100bn)

20. Ebonyi (N188-N178bn)

The 16 states that increased their budgets:

1. Cross Rivers (N1trn- N1.1trn)

2. Enugu (N109-N170bn)

3. Kogi (N147-N176bn)

4. Kwara (N158-N162)

5. Lagos (N874Bn-N1.1trn)

6. Gombe (N122-N131bn)

7. Plateau (N154-N172bn)

8. Rivers (N480-N530bn)

9. Sokoto (N170-202)

10. Taraba (N146-N213bn)

11. Yobe (N92-N108bn)

12. Zamfara (N135-N182bn)

13. Kaduna (N157-N259bn)

14. Katsina (N202-N249bn)

15. Ogun (N400-N449bn)

16. Osun (N154-N199bn)

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Meanwhile, Following the refusal of some of the state governors to implement the payment of N30,000 minimum wage and the consequential adjustment that follows for workers in their states, organised labour on Friday, December 27, said it was ready to go to war with any governor that defaults.

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President Muhammadu Buhari signed the new minimum wage act into law on April 18, 2019.

Legit.ng gathers that six months after Buhari signed the act into law, the federal government and organised labour, agreed to 23.2% increase for workers on level seven and 20% for workers on level eight, while it agreed on 19% increase for workers on level nine.

Both the government and organised labour were said to have reached an agreement on a 16% salary increase for workers on levels 10 to 14 and 14% increase for workers on levels 15 to 17.

With labour reaching an agreement with the government at the national level, the battle shifted to the states.

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Source: Legit.ng

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