Thursday, 13 October 2011
The governors of the 36 states will today meet to
consider a report that listed 16 states as
“bankrupt”, nine “unhealthy”, six “critical” and five
“distressed” as a result of the implementation of
the minimum wage which commenced August
2011.
Also, the governors may move for an
amendment of the constitution to remove labour
and all labour-related matters from the Exclusive
Federal Legislative list to the Concurrent List,
meaning states will be able to discuss their
labour-related issues.
The implication is the decentralisation of the
Nigeria Labour Congress (NLC) and other unions.
The report by the Nigeria Governors Forum (NGF)
Secretariat obtained by THISDAY listed the
following states as being in distressed situation
following the implementation of the wage: Katsina
with a total yearly revenue of N33.2 billion and a
total year wage bill of N21.71 billion or 65.4 per
cent of the state total revenue; Niger with a total
yearly revenue base of N32.3 billion and a wage
bill of N23.4 billion or 72.4 per cent; and Sokoto
with a total yearly revenue of N29.2 billion and a
yearly salary bill of N23.4 billion or a 80 per cent
of the total revenue.
Also listed is Zamfara with a total yearly revenue
base of N27.5 billion to a yearly wage bill of
N19.24 billion or 70 per cent.
All these, the report said, were based on a 30-
per-cent increase in personnel cost.
Other states listed to be in critical positions include
Adamawa, Benue, Edo, Ekiti, Osun and Plateau.
Specifically, the report stated that Adamawa with
a yearly revenue base of N29.2 billion will expend
N15.21 billion on salaries and wages, which
represent a 52.1 per cent of personnel cost of the
total revenue, while Benue with a N35.3 billion
yearly revenue, which yearly salaries will gulp
N19.37 billion or 54.9 per cent of personnel cost.
Edo with a total yearly revenue base of N40.9
billion will finance a wage bill of N22.23 billion or a
54.4 per cent of personnel cost.
Ekiti is among the states listed within the range of
states in critical situation. The state has a yearly
revenue base of N23.6 billion, but has a yearly
wage bill of N14.82 billion or a 62.8 per cent of the
personnel cost.
Plateau has N28.1 billion as total revenue with
N15.99 billion as personnel cost or a 56.9 per
cent.
According to the source, states described as
unhealthy are Cross River, Ebonyi, Enugu,
Kaduna, Kogi, Ogun, Ondo, Taraba and Yobe.
The following states were described as healthy
and therefore can pay the 30-per-cent
incremental wage bill. They are: Abia, Akwa
Ibom, Anambra, Bauchi, Bayelsa, Delta, Gombe,
Imo, Jigawa, Kebbi, Kwara, Lagos, Nasarawa,
Oyo and Rivers.
The report, which stated that Rivers has a total
yearly revenue base of N184.5 billion, has a
yearly wage bill of N47.45 billion or 25.7 per cent
of personnel cost.
In the same vein, Akwa Ibom has a yearly
revenue base of N144.4 billion and a personnel
cost of N23.27 billion or 16.1 per cent.
Lagos State has a yearly revenue base of N182.8
billion and a wage bill of N42.51 billion or a 23.3
per cent of the personnel cost.
According to the report, the implementation of
the Minimum Wage Act by these states would
have a negative impact on their ability to create
jobs and at great opportunity cost on other
government projects.
Apart from this, the report said the
implementation of the Act would negatively affect
the basis of true federalism in Nigeria.
It was as a result of this that one of the governors
told THISDAY that the meeting would be
discussing the implication of allowing labour
matters to remain on the exclusive federal list.
“It is our belief that we shall be asking that labour
and all labour-related matters should be moved
to the concurrent list of the constitution, so that
states would be able to negotiate with labour
leaders in their respective states,” he said.
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