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

New Minimum wage likely to push states into bankruptcy — NGF

54,210Posted 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:

54,210 Comments

  1. Daison pilesos kypit_tdSl
    Reply
    January 29, 2026,

    пылесос дайсон v15 купить в спб [url=https://dn-pylesos-kupit-6.ru/]пылесос дайсон v15 купить в спб[/url] .

  4. dostavka alkogolya_iymt
    Reply
    January 29, 2026,

    заказать алкоголь москва [url=https://alcohub10.ru/]заказать алкоголь москва[/url] .

  5. Pilesos Daison_uger
    Reply
    January 29, 2026,

    пылесос дайсон купить [url=https://pylesos-dn-8.ru/]пылесос дайсон купить[/url] .

  6. hauntingadelinepdfrem
    Reply
    January 29, 2026,

    Parsons Manor is a place where nightmares come true. But it is also a place where love can bloom. The search for the Haunting Adeline PDF is a search for this contradiction. The book is a beautifully written gothic romance. It is a story that is full of atmosphere and mood. It is a novel that will transport you to another world. https://hauntingadelinepdf.site/ Haunting Adeline Book 1 Pdf Download

  8. mockingjaypdfrem
    Reply
    January 29, 2026,

    While the first two books focused on survival, this one focuses on the ethics of war and leadership. Katniss questions if replacing one tyrant with another is truly freedom. Readers interested in these philosophical questions will find the Mockingjay PDF a valuable resource. You can annotate the digital text to track the shifting moral compasses of the characters. Suzanne Collins challenges the reader to think critical about power dynamics. It is a sophisticated conclusion to a young adult series. https://mockingjaypdf.site/ Hunger Games Book 3 Mockingjay Pdf Free Download

  9. empireofstormspdfrem
    Reply
    January 29, 2026,

    The relationship between Elide and Lorcan is a slow-burn delight. It provides a different kind of romance than the main couple. Fans often search for the Empire of Storms PDF to read their scenes. The contrast between the dark warrior and the clever girl is perfect. It is a subplot that steals the show. https://empireofstormspdf.site/ Empire Of Storms And Tower Of Dawn Pdf​

  13. dostavka alkogolya_mkmt
    Reply
    January 29, 2026,

    доставка алкоголя на дом москва [url=https://www.alcohub10.ru]доставка алкоголя на дом москва[/url] .

  16. Pilesos Daison_cher
    Reply
    January 29, 2026,

    пылесос дайсон купить в спб [url=https://pylesos-dn-8.ru/]пылесос дайсон купить в спб[/url] .

  20. mostbet_dlei
    Reply
    January 29, 2026,

    mostbet доступ к сайту [url=mostbet2035.help]mostbet доступ к сайту[/url]

  21. Daison pilesos kypit_icSl
    Reply
    January 29, 2026,

    пылесос дайсон купить в спб [url=https://dn-pylesos-kupit-6.ru/]пылесос дайсон купить в спб[/url] .

  23. Mockingjay Pdf Google Drive
    Reply
    January 30, 2026,

    The psychological manipulation of Peeta is terrifying and heartbreaking. It shows the true cruelty of the Capitol. Follow his recovery process in the Mockingjay PDF. The digital text handles the sensitive subject matter with the necessary gravity. It is a story about fighting for the one you love, even when they are lost. The emotional payoff is worth the pain.

  24. Empire Of Storms Epub Torrent
    Reply
    January 30, 2026,

    The book challenges the tropes of the genre. It twists expectations and surprises the reader. The Empire of Storms PDF is fresh and original. It doesn’t rely on clichés. It charts its own course.

  28. mostbet_irei
    Reply
    January 30, 2026,

    mostbet вход Киргизия [url=https://mostbet2035.help]https://mostbet2035.help[/url]

  29. mostbet_yoei
    Reply
    January 30, 2026,

    мостбет mines коэффициенты [url=https://www.mostbet2035.help]https://www.mostbet2035.help[/url]

  31. mostbet_xrei
    Reply
    January 30, 2026,

    как пополнить mostbet [url=http://mostbet2035.help/]как пополнить mostbet[/url]

  34. Celeste Ng Everything I Never Told You Epub​
    Reply
    January 30, 2026,

    The setting of the book, a small college town in Ohio, adds to the feeling of claustrophobia that Lydia feels. Everyone knows everyone, and the Lees are always under scrutiny. This atmosphere is perfectly captured by Ng. If you are looking for the Everything I Never Told You PDF, you will find a text that is rich in atmospheric detail. The setting becomes a character in itself, influencing the actions and feelings of the family. It is a story about the difficulty of finding a safe harbor in a judgmental world.

  35. Haunting Adeline Chapter 16 Pdf
    Reply
    January 30, 2026,

    Secrets, lies, and a stalker who knows everything. This is the world of Adeline Reilly. If you are looking for the Haunting Adeline PDF, you are ready to explore it. The book is a gripping read that will keep you up all night. It is a story about the danger of the truth. It is a novel that you have to read to believe.

  36. Mockingjay Full Pdf
    Reply
    January 30, 2026,

    The Mockingjay pin becomes a symbol of resistance that transcends the book itself. Within the story, it unites the disparate rebel factions. You can read about the origin and meaning of this symbol in the Mockingjay PDF. Digital books are great for zooming in on the text to catch every nuance of the description. The iconography of the series is iconic for a reason. Discover the power behind the symbol.

  37. mostbet_jrei
    Reply
    January 30, 2026,

    мостбет быстрые ставки [url=https://www.mostbet2035.help]мостбет быстрые ставки[/url]

  38. RusselRix
    Reply
    January 30, 2026,

    Spannende Spiele Cash Truck Begins Slot Bewertung bieten Spielern die Moglichkeit, ihr Gluck auszutesten und gro?e Gewinne zu erzielen. Diese Online-Casinos prasentieren eine Vielzahl von Spielen, von klassischen Slots bis hin zu Live-Dealer-Erlebnissen, und schaffen eine fesselnde Atmosphare, die das Spielerlebnis unvergesslich macht.

  39. kingdomofashpdfrem
    Reply
    January 30, 2026,

    Kingdom of Ash is a masterclass in high-stakes storytelling. Every chapter feels like it could be the last for someone. The tension is maintained beautifully. Feel the thrill with the kingdom of ash pdf. It is a book that demands to be binged. https://kingdomofashpdf.site/ Kingdom Of Ash Sarah J Maas Read Online Pdf

  40. mostbet_ijei
    Reply
    January 30, 2026,

    mostbet надежность [url=https://www.mostbet2035.help]mostbet надежность[/url]

  41. 1win_jaKi
    Reply
    January 30, 2026,

    1win время вывода [url=www.1win12049.ru]1win время вывода[/url]

  42. vavada_ynol
    Reply
    January 30, 2026,

    jak wpłacić kartą na vavada [url=https://www.vavada2003.help]https://www.vavada2003.help[/url]

  43. ShaneSaity
    Reply
    January 30, 2026,

    Русские подарки и сувениры купить в широком ассортименте. Классические и современные изделия, национальные символы, качественные материалы и оригинальные идеи для памятных и душевных подарков.

  44. theroadpdfrem
    Reply
    January 30, 2026,

    Cormac McCarthy’s The Road is a story of endurance. The father and son face unimaginable hardships, yet they keep going. The “fire” they carry is a symbol of their humanity. This novel is essential reading. Many people look for the pdf version to read on the go. It is a book that will change your perspective on life. https://theroadpdf.site/ The Road Mccarthy Pdf Free Download

  45. kingdomofashpdfrem
    Reply
    January 30, 2026,

    The mythology of the Twelve Gods is finally explained. The truth about the gods is darker than anyone expected. It twists the traditional “gods save the world” trope. Discover the truth in the kingdom of ash pdf. The characters must defy the divine to save their world. It is a humanist message about taking control of your own destiny, regardless of what higher powers demand. https://kingdomofashpdf.site/ Read Kingdom Of Ash Online Free Pdf

  46. queenofshadowspdfrem
    Reply
    January 30, 2026,

    The ending of the book leaves the characters in a precarious but hopeful position. They have won a major battle, but the war is far from over. Readers finishing the Queen of Shadows pdf are often immediately looking for the next book. The open-ended nature of the conclusion promises even greater challenges ahead. The group is finally heading to Terrasen, changing the setting for the next phase of the series. It is a perfect bridging novel that accomplishes its goals while setting up the future. https://queenofshadowspdf.site/ Dragonlance Shadow Of The Dragon Queen Pdf Free

  47. belovedpdfrem
    Reply
    January 30, 2026,

    Sethe’s journey is one of the most heart-wrenching in literature, driven by a love that is described as “too thick.” To understand the complexities of this maternal bond, finding a Beloved PDF is a common step for literature students. The book asks difficult questions about the morality of saving one’s children from a life of bondage at any cost. An electronic version of the text makes it easier to compile evidence for essays discussing whether Sethe’s actions were an act of mercy or madness, a debate that has continued for decades. https://belovedpdf.site/ Beloved Toni Morrison Pdf Download

  48. vavada_geol
    Reply
    January 30, 2026,

    vavada blackjack klasyczny [url=http://vavada2003.help]http://vavada2003.help[/url]

  49. 1win_fzKi
    Reply
    January 30, 2026,

    mines 1win [url=https://www.1win12049.ru]https://www.1win12049.ru[/url]

Leave a Reply

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