Governors of the 36 states of the federation Sunday night met with President Goodluck Jonathan at the Aso Rock Villa in Abuja to register their concern over the financial implications of the Minimum Wage Bill recently passed by the National Assembly. Although, the meeting was held behind closed-doors, it was however, gathered that the governors pushed for a review of the current revenue sharing formula to accommodate more of the states’ interests.
Before the Sunday night meeting with the president, the governors had also met at the Kwara State Governor’s Lodge to review the bill as passed.
Although, the bill is yet to be assented to by President Goodluck Jonathan, the governors at their meeting in Abuja, expressed grave concerns over its financial implications and moved for the review of current revenue sharing formula, apparently in favour of the states, to enable them to face the challenges of the new wage bill.
Consequently, the governors after their meeting at the Kwara State Government Lodge, booked an appointment with the president at his official residence to express their concerns over the implications of the yet-to-be-signed bill into law.
Chairman of the Governors Forum, Dr. Bukola Saraki of Kwara State, told reporters after the meeting that the governors discussed the revenue settings of the country.
He also said the governors at the same meeting, discussed security challenges in some states and that the group planned to hold a seminar to educate Nigerians on the need to ensure a free and fair general election.
Also speaking, the Director-General of the Nigeria’s Governors Forum, Asishana Okauru, who shed more light on the meeting, said: “The governors met on matters of national importance, which include the national minimum wage. The governors at the meeting expressed their concerns on the new minimum wage and implications it will have for some of the states.”
It was gathered that as a result of the implications of bill the governors are asking for the immediate review of the revenue formula to enable the states and the third tiers (local governments) to pay the new wage.
The governors, had a fortnight ago, set up a committee to review the revenue sharing formula in the country with Lagos State Governor Babatunde Fashola, as chairman of the committee.
According to the communiqué of the meeting read by Saraki, the governors said: “The Forum must address the revenue allocation formula and a committee to be set up to prepare for constitutional changes, which will consist of Lagos, Anambra, Enugu, Sokoto, Adamawa, Rivers with Lagos Governor as chairman.”
The revenue formula of the country as presented by the Federal Ministry of Finance in March, 2004 stands at 52.8 per cent for the Federal Government, while the states take home 20.72 per cent and the local governments settle for 20.2 per cent.
Though, there was a proposal in September 2004 by former President Olusegun Obasanjo for a sharing arrangement of 53.9 per cent for the Federal Government; the states, 31; and the local government, 15.2 per cent, it did not see the light of day as it was not ratified by the appropriate government bodies.
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) had in February 2009 presented a demand for a N52,000 minimum wage to the Federal Government with the argument that the present wage could no longer cater for the needs of public civil servants in view of the present economic situation.
The last time the minimum wage was reviewed in the country was in 2000 when the then Obasanjo-led administration jacked up workers’ minimum wage to N7,500.
To avoid labour crisis, the Federal Government had in May 2009 set up a tripartite committee headed by Justice Alfa Belgore to look into the national minimum wage issue. The committee, which had eight members each drawn equally from the government and labour and employers concluded negotiations in March last year and submitted its recommendations to the government.
The committee had earlier proposed a minimum wage of N22,500 per month as the appropriate figure for workers. However, the committee observed that the economy would not support the amount and after extensive deliberations, negotiations, it was agreed that the new wage be pegged at N18,000.