New Minimum wage likely to push states into bankruptcy — NGF
Posted inNews Nigeria Politics

New Minimum wage likely to push states into bankruptcy — NGF

59,571Posted inNews, Nigeria, Politics6 minutes

As the nation awaits the new minimum wage promised to be sent to the National Assembly by President Bola Tinubu, the burden of implementing the minimum wage may make many states bankrupt.

The Federal Executive Council, at its meeting last Tuesday, stepped down a memorandum on the report of the tripartite committee on the new minimum wage, to allow for more consultations among the federal and state governments on one part, the private sector and the labour unions on the other part.

Last Thursday, Tinubu met with the governors at the National Economic Council meeting chaired by Vice President Kashim Shettima. The meeting, which was expected to deliberate on the national minimum wage, was, however, silent on whether or not it considered the issue.

Also last Thursday, the Southern Governors’ Forum released the communiqué of its meeting held in Abeokuta, Ogun State, with the governors asking that each state should negotiate minimum wage with its workforce.

The labour unions have, however, reacted to the stance of the Ni¬geria Governors’ Forum over their overbearing influence on the minimum wage negotia¬tions.

In a document, titled, “Analysis of State FAAC inflows and state expenditure profile,” of the Nigeria Governors’ Forum Secretariat, the NGF report warned that implementing the new minimum wage could push states into bankruptcy due to increased recurrent expenditure.

READ ALSO:

FG votes N24tn for salaries as new wage begins April

According to the report, the burden of recurrent expenditure already left Abia, Ekiti, Gombe, Imo, Katsina, Kogi, Oyo, Plateau, Sokoto, Yobe, and Zamfara in deficit in 2022.

The report predicted that if the recurrent expenditure increased by 50 per cent, 13 states would fall into deficit, with only 10 remaining financially stable.

The tripartite committee’s recommendation of a N62,000 minimum wage would necessitate over a 100 per cent increase from the current N30,000, potentially leaving only a few states like Anambra, Bayelsa, Borno, Ebonyi, Gombe, Imo, Jigawa, Kaduna, Lagos, and Rivers with positive net revenues, based on the 2022 fiscal data.

A net revenue is the deduction of recurrent expenditure from the total revenue of the state. When it is positive, it means a surplus, but when negative, there is a deficit.

Also, the total revenue of states is calculated from the monthly revenue from the Federal Account Allocation Committee, internally generated revenue, aids and grants and constituency development funds.

According to the documents, sighted, Abia, with an employment size of about 58,631 workers, pays N5,837,899,980.40 as wage monthly. Anambra has a 20,541 employment size and pays N1,824,851,308.96 monthly as wages, apart from N894,480,399.62 as pension obligation and N579,694,680.33 for debt servicing.

Bayelsa boasts of 48,213 workforce, paying N5,802,435,178.58 monthly, with N1,194,528,784.40 as pension obligation and N3,535,787,992.48 as debt servicing, totalling N10,532,751,955.46 as total recurrent expenditure monthly.

Benue has about 13,366 workers in its workforce and pays N2,040,184,471.85 as monthly wage, N76,838,634.62 for pension, and N64,685,126,826.08 for debt servicing, totalling N66,802,149,932.56 monthly.

Delta has about 50,871 workers, offering N8,973,081,853.50 as wages, N1,499,886,303.39 as pension, and N72,417,433,139.00 as debt servicing, accumulating to N82,890,401,295.89 in a month.

Jigawa has about 44,831 workers in its employ and pays N2,795,662,113.02 as wages, and N345,987,843.12 as a pension, totalling N3,141,649,956.14 monthly on recurrent expenditure.

Katsina, Kwara and Niger have 19,062, 36,048 and 22,225 workers, with accumulated N139,294,944,565.27, N4,457,268,675.54 and N2,653,614,213.35 monthly recurrent expenditure respectively.

According to the document, Abia has a total recurrent expenditure of N111,983,979,958.62, against a total revenue of N147,637,730,867.73.

For Adamawa, the recurrent expenditure stands at N70,369,399,885.57, against a total revenue of N109,722,949,684.65, while Akwa Ibom boasts of a high revenue of N444,288,683,000, with recurrent expenditure of N235,144,539,000.

Of the states, Lagos has the highest total revenue, amassing N1,243,778,878,170 in 2022, with a recurrent expenditure of N621,043,036,000, followed by Delta, with N702,020,717,460.08 and a recurrent expenditure of N377,905,100,451.83.

Rivers amassed N525,588,159,714.88 in 2022, with recurrent expenditure of N186,974,715,774.87; Kaduna had a total revenue of N222,349,875,000 and expenditure of N95,987,999,472.10; Ogun, N297,249,009,626.83, recurrent expenditure of N178,519,010,628.42 and Oyo, with total revenue of N247,156,776,739.70 and recurrent expenditure of N152,077,804,384.65.

Kebbi State had the lowest total revenue in 2022, raking in N92,132,444,588.16 and spent N57,601,464,374.96 on recurrent expenditure, followed by Taraba, with a total revenue of N101,177,283,069.87 and recurrent expenditure of N75,055,201,412.62.

Aside from FAAC allocation, some states recorded poor IGR in the 2022 data compiled by the NGF Secretariat.

Zamfara State generated N6,513,960,477.20; followed by Kebbi, with N8,630,767,122.96; Taraba, N9,744,331,840.01 and Yobe State, with N9,940,554,642.00.

The IGR of Katsina (N12,821,119,042.64), Adamawa (N13,175,774,969.53), Niger (N14,427,373,136.00), Benue (N15,021,223,729.38), Plateau (N15,927,001,739.90) and Imo (N16,711,346,111.18) also showed a poor revenue standing.

Newsmen reported on October 19, 2023, that 15 states have yet to implement the N30,000 minimum wage for their workers since it was signed into law in 2019.

According to BudgiT, though the 15 states were yet to implement the minimum wage of N30,000, the 36 states of the federation grew their cumulative personnel cost by 13.44 per cent to N1.75tn in 2022 from N1.54tn in 2021.

The civil society organization, in a release, ‘The States of States Report 2023,’ highlighted that the 36 states of the federation grew their revenue by 28.95 per cent from N5.12tn in 2021 to N6.6tn in 2022.

“Put together, the IGR of the 36 states appreciated by 12.98 per cent from N1.61tn in 2021 to N1.82tn in 2022, denoting a strengthened domestic revenue mobilisation capability.

“Nonetheless, the IGR to GDP ratio remained very low at 1.01 per cent. The increase in IGR did not reflect across the board as 17 states experienced a decline in their IGR from the previous year, while 19 states recorded positive growth,” BudgIT said.

The Assistant General Secretary of the NLC, Chris Onyeka, in an interview with the News Agency of Nigeria on minimum wage and its implementation, claimed that many state governors were flouting the Minimum Wage Act and listed the states of Abia, Enugu, Bayelsa, Delta, Nasarawa, Gombe, Adamawa, Niger, Sokoto, Imo, Anambra, Taraba, Benue, and Zamfara as defaulting.

Reacting, the Enugu State chairman of TUC, Ben Asogwa, said the state commenced payment of N30,000 minimum wage and its consequential adjustment in February 2020 for state government workers, while local government workers and primary school teachers were paid 25 per cent consequential adjustment.

He, however, said Governor Peter Mbah, on assumption of office, approved the full implementation of the N30,000 minimum wage for both the LG workers and primary school teachers in the state.

Zamfara State Governor, Dauda Lawal, announced during a meeting with the leadership of the labour unions that the state would begin payment of N30,000 minimum wage effective June 2024.

Tags:

59,571 Comments

  1. ClaudiaGiree
    Reply
    June 12, 2026,

    Personally, I’ve checked out many online casinos for a long time, and it’s interesting how many players sign up without checking proper reviews first. For anyone searching for a detailed look of bonuses, payout speed, and game selection, this write-up cleared things up for me: [url=https://telegra.ph/Erratic-Fortunes-and-Strategic-Gameplay-at-afk-spin-casino-06-04″]Play smart, friends!Decent breakdown[/url].

  3. ClaudiaGiree
    Reply
    June 12, 2026,

    I’ve tried a bunch of virtual casinos in the past years, and it’s always surprising how many beginners join a site before looking at reviews. If you’re interested in a detailed look of what a casino offers, this guide helped me a lot: [url=https://telegra.ph/Rozw%C3%B3j-i-dojrza%C5%82o%C5%9B%C4%87-platformy-22bet-w-Polsce-dla-wymagaj%C4%85cych-graczy-06-04″]Wishing big wins, friends!Helpful guide[/url].

  5. ClaudiaGiree
    Reply
    June 12, 2026,

    Honestly, I’ve tried many online casinos in the past years, and it’s always surprising how often users deposit money without verifying anything. For anyone searching for a detailed look of key platform details, this article helped me a lot: [url=https://telegra.ph/Abundant-Choices-and-Seamless-Gameplay-with-Spinmama-Slot-06-05″]Stay lucky, everyone!More tips here[/url].

  6. monopoly_vdsr
    Reply
    June 12, 2026,

    monopoly prediction live [url=https://monopoly-casino-in.com]https://monopoly-casino-in.com/[/url]

  7. ClaudiaGiree
    Reply
    June 12, 2026,

    Honestly, I’ve used a bunch of virtual casinos over the years, and it’s kind of crazy how many players sign up without checking proper reviews first. If anyone’s looking for a clear overview of what a casino offers, this overview cleared things up for me: [url=https://telegra.ph/Beskrivare-och-utforskning-av-slots-vader–din-guide-till-sp%C3%A4nning-och-stora-vinster-06-05″]Stay lucky, everyone!Solid overview[/url].

  8. ClaudiaGiree
    Reply
    June 12, 2026,

    Honestly, I’ve used various iGaming sites recently, and it’s kind of crazy how often players deposit money before looking at reviews. If you’re interested in a detailed look of promos, withdrawals, and available games, this review helped me a lot: [url=https://telegra.ph/Lenta-e-Attenta-Esplorazione-di-afkspin-Giochi-Bonus-Sicurezza-e-Strategie-Vincenti-06-04″]Wishing big wins, folks!More tips here[/url].

  9. ClaudiaGiree
    Reply
    June 12, 2026,

    I have used various virtual casinos over the years, and it’s always surprising how many players start playing before looking at reviews. In case you want a simple explanation of what a casino offers, this write-up cleared things up for me: [url=https://telegra.ph/Medianoche-y-adrenalina-descubriendo-el-mejor-casino-online-de-espa%C3%B1a-06-08″]Safe bets, all!Decent breakdown[/url].

  10. Robertopup
    Reply
    June 12, 2026,

    В данном обзоре представлены основные направления и тренды в области медицины. Мы обсудим актуальные проблемы здравоохранения, свежие открытия и новые подходы, которые меняют представление о лечении и профилактике заболеваний. Эта информация будет полезна как специалистам, так и широкой публике.
    Обратиться к источнику – [url=https://imena-mj.ru/narkologicheskaya-klinika-kak-vybrat-mesto-gde-dejstvitelno-pomogut.html]tver clinica plus[/url]

  11. ClaudiaGiree
    Reply
    June 12, 2026,

    I have checked out lots of virtual casinos recently, and it still surprises me how often users sign up without reading any reviews. If you need a simple explanation of promos, withdrawals, and available games, this write-up was really helpful: [url=https://telegra.ph/Iluminado-Experi%C3%AAncia-de-Jogo-e-Seguran%C3%A7a-no-spin-winera-Casino-Online-06-05″]Wishing big wins, folks!More tips here[/url].

  12. Ronaldgef
    Reply
    June 12, 2026,

    В этой публикации мы обсуждаем современные методы лечения различных заболеваний. Читатели узнают о новых медикаментах, терапиях и исследованиях, которые активно применяются для лечения. Мы нацелены на то, чтобы предоставить практические знания, которые могут помочь в борьбе с недугами.
    Получить исчерпывающие сведения – [url=https://wdorogu.ru/chto-takoe-pohmele-i-kak-ego-lechit/]клиника плюс[/url]

  13. ClaudiaGiree
    Reply
    June 12, 2026,

    Personally, I’ve played on various iGaming sites over the years, and it’s kind of crazy how often players sign up without verifying anything. If you’re interested in a helpful review of promos, withdrawals, and available games, this overview was really helpful: [url=https://telegra.ph/Immersive-Visuals-Elevate-the-Boomzino-Slot-Experience-for-Players-06-03″]Good luck, all!Solid overview[/url].

  15. Alvarophelp
    Reply
    June 12, 2026,

    В данной публикации мы поговорим о процессе восстановления от зависимости, о том, как вернуть себе нормальную жизнь. Мы обсудим преодоление трудностей, значимость поддержки и наличие программ реабилитации. Читатели смогут узнать о ключевых шагах к успешному восстановлению.
    Подробнее можно узнать тут – [url=https://ladyup.ru/moda/alkogolizm-muzha-kak-zhenshhine-razorvat-krug-sozavisimosti-i-organizovat-pravilnuyu-pomoshh.html]вывод из запоя самара цены[/url]

  16. ClaudiaGiree
    Reply
    June 12, 2026,

    Honestly, I’ve tested many iGaming sites in the past years, and it’s interesting how many players start playing without reading any reviews. If anyone’s looking for a breakdown of important casino features, this article helped me a lot: [url=https://telegra.ph/Analyse-und-Vergleich-der-besten-online-casino-ohne-oasis-f%C3%BCr-deutsche-Spieler-06-08″]Play smart, folks!More tips here[/url].

  17. ClaudiaGiree
    Reply
    June 12, 2026,

    I have played on various virtual casinos in the past years, and it’s always surprising how often players start playing without verifying anything. If you need a helpful review of what a casino offers, this article worked well for me: [url=https://telegra.ph/Weitl%C3%A4ufige-und-zug%C3%A4ngliche-M%C3%B6glichkeiten-mit-winairlines-casino-f%C3%BCr-ein-au%C3%9Fergew%C3%B6hnliches-Spielerle-06-05″]Wishing big wins, folks!My go-to review[/url].

  19. ClaudiaGiree
    Reply
    June 12, 2026,

    I’ve checked out many virtual casinos for a long time, and it’s always surprising how many beginners sign up before looking at reviews. If you need a clear overview of bonuses, payout speed, and game selection, this overview was really helpful: [url=https://telegra.ph/D%C5%82ugi-przegl%C4%85d-Vavada-Casino-pe%C5%82na-oferta-gier-bonusy-bezpiecze%C5%84stwo-i-do%C5%9Bwiadczenia-graczy-06-08″]Wishing big wins, everyone!Decent breakdown[/url].

  20. EdwardVek
    Reply
    June 12, 2026,

    Эта статья освещает различные аспекты освобождения от зависимости и пути к выздоровлению. Мы обсуждаем важность осознания своей проблемы и обращения за помощью. Читатели получат практические советы о том, как преодолевать трудности и строить новую жизнь без зависимости.
    Лучшее решение — прямо здесь – [url=https://mvkursk.ru/russia/narkolog-na-dom-v-tveri-uslugi-i-pomoshh-na-meste.html]вызов нарколога на дом тверь[/url]

  21. monopoly_wusr
    Reply
    June 12, 2026,

    monopoly go live events [url=http://www.monopoly-casino-in.com]https://monopoly-casino-in.com/[/url]

  24. ClaudiaGiree
    Reply
    June 12, 2026,

    I’ve tested a bunch of casino sites in the past years, and it still surprises me how often players sign up without verifying anything. If you need a detailed look of what a casino offers, this guide cleared things up for me: [url=https://telegra.ph/Regelm%C3%A4%C3%9Fige-Nutzung-f%C3%BChrt-zu-BetMatch-und-einer-verbesserten-Spielerfahrung-06-04″]Safe bets, all!Decent breakdown[/url].

  27. ClaudiaGiree
    Reply
    June 12, 2026,

    Honestly, I’ve used lots of casino sites recently, and it’s interesting how many people deposit money before looking at reviews. If you’re interested in a clear overview of important casino features, this write-up cleared things up for me: [url=https://telegra.ph/Spool-for-the-Thrilling-World-of-Chicken-Road-Pakistan-06-03″]Stay lucky, everyone!Solid overview[/url].

  29. Michaelhic
    Reply
    June 12, 2026,

    Эта статья подробно расскажет о процессе выздоровления, который включает в себя эмоциональную, физическую и психологическую реабилитацию. Мы обсуждаем значимость поддержки и наличие профессиональных программ. Читатели узнают, как строить новую жизнь и не возвращаться к старым привычкам.
    Ознакомиться с теоретической базой – [url=https://bannersaga.ru/antistress-navigator-najdi-svoj-put-k-garmonii-v-bushuyushhem-mire/]tver clinica plus[/url]

  32. ClaudiaGiree
    Reply
    June 12, 2026,

    I’ve used various online casinos recently, and I’m always shocked how often players start playing without doing research. If you need a clear overview of bonuses, payout speed, and game selection, this review made things easier: [url=https://telegra.ph/Scholarly-Insights-into-thorfortune-casino-A-Comprehensive-Evaluation-06-08″]Safe bets, everyone!Helpful guide[/url].

  33. JamesBug
    Reply
    June 12, 2026,

    Этот обзор посвящен успешным стратегиям избавления от зависимости, включая реальные примеры и советы. Мы разоблачим мифы и предоставим читателям достоверную информацию о различных подходах. Получите опыт многообразия методов и найдите подходящий способ для себя!
    Связаться за уточнением – [url=https://russianshop.org/instrumenty/professionalnoe-lechenie-narkomanii-put-k-vyzdorovleniyu-i-novoj-zhizni.html]лечение наркомании в Твери[/url]

  34. bitcoinpoker_boSn
    Reply
    June 12, 2026,

    does online poker take bitcoin [url=www.bitcoin-poker-deutschland.de]www.bitcoin-poker-deutschland.de[/url] .

  35. ClaudiaGiree
    Reply
    June 12, 2026,

    Personally, I’ve checked out many online casinos recently, and it’s interesting how often players deposit money before looking at reviews. If you’re interested in a helpful review of promos, withdrawals, and available games, this write-up helped me a lot: [url=https://telegra.ph/Rozszerzenie-oferty-gier-i-mo%C5%BCliwo%C5%9Bci-w-casino-mostbet-dla-polskich-graczy-06-08″]Stay lucky, guys!More tips here[/url].

  36. Russellmot
    Reply
    June 12, 2026,

    Текст посвящён распространённым мифам о зависимости и их развенчанию. Мы предоставим научно обоснованную информацию и дадим рекомендации по выбору эффективного способа борьбы с зависимым поведением.
    Давай разберёмся досконально – [url=https://aliexpres.sale/uncategorized/lechenie-narkomanii-osnovnye-metody-i-osobennosti.html]лечение наркомании в Твери[/url]

  37. PatrickheD
    Reply
    June 12, 2026,

    В этой статье рассматриваются актуальные вопросы, связанные с развитием медицинской науки и её внедрением в повседневную практику. Особое внимание уделено вопросам профилактики, ранней диагностики и использованию технологий для улучшения здоровья человека.
    Изучить рекомендации специалистов – [url=http://poiskdam.ru/programma-lecheniya-alogizma-i-narkomanii-12-shagov.html]Реабилитация наркоманов 12 шагов[/url]

  39. ClaudiaGiree
    Reply
    June 12, 2026,

    Over time, I’ve tested various casino sites over the years, and I’m always shocked how often users deposit money without verifying anything. If anyone’s looking for a clear overview of promos, withdrawals, and available games, this review worked well for me: [url=https://telegra.ph/Apprehending-the-World-of-afk-spin-A-Detailed-Exploration-of-Login-Gameplay-Bonuses-and-Security-06-04″]Play smart, guys!My go-to review[/url].

  40. Justindob
    Reply
    June 12, 2026,

    Этот обзор медицинских исследований собрал самое важное из последних публикаций в области медицины. Мы проанализировали ключевые находки и представили их в доступной форме, чтобы читатели могли легко ориентироваться в актуальных темах. Этот материал станет отличным подспорьем для изучения медицины.
    Связаться за уточнением – [url=https://clubsamodelok.ru/remont-tela-posle-prazdnikov-granicy-narodnyx-metodov-i-kogda-nuzhna-professionalnaya-pomoshh/]капельница от запоя вызов[/url]

  41. Josephgok
    Reply
    June 12, 2026,

    Публикация посвящена жизненным историям людей, успешно справившихся с зависимостью. Мы покажем, что выход есть, и он начинается с первого шага — принятия проблемы и желания измениться.
    Это ещё не всё… – [url=https://newsprofit.info/preimushhestva-vyzova-narkologa-na-dom-i-kak-on-pomogaet-pri-lechenii-zavisimosti.html]вызов нарколога на дом тверь[/url]

  42. ClaudiaGiree
    Reply
    June 12, 2026,

    Personally, I’ve tested various casino sites lately, and it’s kind of crazy how often users start playing without verifying anything. In case you want a clear overview of bonuses, payout speed, and game selection, this write-up cleared things up for me: [url=https://telegra.ph/Simmiscer-dans-lunivers-ludique-trouver-le-meilleur-casino-en-ligne-06-08″]Wishing big wins, guys!Decent breakdown[/url].

  43. ClaudiaGiree
    Reply
    June 12, 2026,

    I have tried various gambling platforms for a long time, and I’m always shocked how many people start playing without checking proper reviews first. If you’re interested in a helpful review of promos, withdrawals, and available games, this review cleared things up for me: [url=https://telegra.ph/L%C3%A9cho-sestompe-et-Onlyspins-se-r%C3%A9v%C3%A8le-un-univers-de-divertissement-en-ligne-06-04″]Good luck, guys!More tips here[/url].

  44. VernonBus
    Reply
    June 12, 2026,

    Этот обзор содержит информацию о передовых достижениях в области медицины. Мы разберем инновационные технологии, которые меняют подход к лечению и диагностике, а также их влияние на эффективность оказания медицинской помощи.
    Проследить причинно-следственные связи – [url=https://dooralei.ru/zdorove/lechenie-narkomanii-osnovnye-metody-i-poleznye-sovety/]лечение наркомании в Твери[/url]

  45. Jamessitty
    Reply
    June 12, 2026,

    Публикация посвящена жизненным историям людей, успешно справившихся с зависимостью. Мы покажем, что выход есть, и он начинается с первого шага — принятия проблемы и желания измениться.
    Ознакомьтесь поближе – [url=https://albico-bryansk.ru/sovremennye-podhody-k-lecheniyu-narkomanii-kompleksnyj-put-k-vyzdorovleniyu/]клиника плюс[/url]

  46. ClaudiaGiree
    Reply
    June 12, 2026,

    I have used quite a few virtual casinos recently, and it still surprises me how many players join a site without reading any reviews. If you’re interested in a breakdown of key platform details, this overview cleared things up for me: [url=https://telegra.ph/Strategic-Access-to-the-Finest-casino-online-australia-Experiences-from-Trusted-Operators-06-08″]Good luck, all!Decent breakdown[/url].

  47. ClaudiaGiree
    Reply
    June 12, 2026,

    I have used various gambling platforms in the past years, and it still surprises me how many beginners start playing before looking at reviews. If you need a detailed look of promos, withdrawals, and available games, this write-up worked well for me: [url=https://telegra.ph/Equipamento-e-Estrat%C3%A9gia-no-Universo-thor-fortune-do-Cassino-Online-06-08″]Safe bets, everyone!My go-to review[/url].

  48. ClaudiaGiree
    Reply
    June 12, 2026,

    Honestly, I’ve checked out lots of gambling platforms over the years, and it’s interesting how many people deposit money without reading any reviews. For anyone searching for a detailed look of key platform details, this review was really helpful: [url=https://telegra.ph/Fesselndes-Ambiente-und-strategisches-Vorgehen-bei-viper-win-verbunden-mit-dem-Risiko-des-Verharren-06-05″]Play smart, all!Helpful guide[/url].

  49. ClaudiaGiree
    Reply
    June 12, 2026,

    Honestly, I’ve used lots of casino sites for a long time, and it’s always surprising how often users join a site without reading any reviews. For anyone searching for a helpful review of important casino features, this review made things easier: [url=https://telegra.ph/Verfallendes-Gl%C3%BCck-und-sichere-Gewinne-im-turbowinz-casino-f%C3%BCr-anspruchsvolle-Spieler-06-05″]Wishing big wins, all!More tips here[/url].

  50. Richardpheks
    Reply
    June 12, 2026,

    В этой статье рассматривается комплексный подход к избавлению от зависимости. Читатель узнает, как сочетание физического, психологического и духовного восстановления помогает достичь стойкого выздоровления.
    Прочесть всё о… – [url=https://clear-dent.ru/ogromnaya-chernaya-dira-pozhiraet-galaktiku-v-sozvezdii/]наркологическая клиника в твери[/url]

Leave a Reply

Your email address will not be published. Required fields are marked *