774 LGA Chairmen Speak on Accepting N62,000 as New Minimum Wage
- The 774 local government chairmen have stated that they cannot afford to pay the proposed N62,000 minimum wage
- Despite labour's push for N250,000 minimum wage, the federal and state governments and the Organized Private Sector (OPS) proposed N62,000
- ALGON Chairman Aminu Muazu-Maifata explained that 90% of local government funds from the Federation Account are currently used for salaries and pensions
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FCT, Abuja—The controversy over the proposed new minimum wage continues unabated, as 774 local government chairmen have stated they cannot afford the N62,000 wage proposal.
The chairmen, furthermore, dismissed the N250,000 proposal by organized labour as unaffordable.
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Legit.ng recalls that N62,000 is the amount proposed by the federal and state governments and the Organized Private Sector (OPS) following negotiations by the Tripartite Committee.
However, labour maintained its advocacy for N250,000 as minimum wage, despite every deployed attempt to make them settle for N62,000.
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Despite labour's unacceptance, President Bola Tinubu announced plans to send the agreed amount to the National Assembly for legislative action on Wednesday, June 12.
As reported by The Nation, speaking during a television program, Aminu Muazu-Maifata, the chairman of the Association of Local Governments of Nigeria (ALGON), local government representatives said they could not pay the wage due to financial constraints.
Muazu-Maifata explained that allocations to local governments from the federation account were insufficient.
He said:
“With the present allocation from the Federation Account, no local government council in Nigeria can afford to pay N62,000.”
Muazu-Maifata highlighted that local governments receive just over 18 per cent of the total revenue from the Federation Account, while the Federal Government gets more than 52 per cent, as reported by Vanguard.
"Currently, 90% of our funds from the Federation Account are used for salaries and pensions. Without increasing the percentage allocated to local government councils, it will be tough, if not impossible, for them to pay a N62,000 minimum wage."
FG urged to augment LGA allocation on acceptance of new wage
The chairman pointed out that LGAs may be forced to approach state governors, including the federal government, to augment their allocation, supposing the minimum wage law is enacted.
He said:
"We will need to seek additional support from our superiors, the governors, and the Federal Government to supplement whatever is allocated to local government councils from the Federation Account."
NLC, TUC send fresh warning to Tinubu over minimum wage
In another report, Organised Labour has called on President Bola Tinubu to consult it (the Nigeria Labour Congress and Trade Union Congress) and the Organised Private Sector (OPS) before submitting any figure as a new minimum wage to the National Assembly.
The two labour centres said this would help maintain industrial harmony in the country.
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Source: Legit.ng
