Tuesday, February 18, 2025

Local Government Chairmen Condemn N62,000 Minimum Wage Proposal

Leaders of Nigeria’s 774 local governments have voiced concerns over the feasibility of implementing the proposed N62,000 minimum wage, citing significant financial limitations. The claim comes amid ongoing negotiations with Organised Labour, who initially demanded a N250,000 minimum wage.

Aminu Muazu-Maifata, National President of the Association of Local Governments of Nigeria (ALGON), articulated these concerns, highlighting the disproportionate revenue allocations that challenge the local governments’ fiscal capacity. With local governments receiving slightly more than 18% of total revenue from the Federation Account and the Federal Government obtaining upwards of 52%, Muazu-Maifata argues that the current financial structure leaves local authorities underfunded.

“Given our allocation from the Federation Account, enduring a minimum wage of N62,000 is beyond our means,” Muazu-Maifata remarked.

READ MORE: US- Based Expert Laments Decline In Nigeria’s Education System, Calls On Govt. Intervention

He further lamented the unsustainable financial burden on local governments, with 90% of their funds being allocated to salaries and pensions. This, according to him, constrains the ability of local councils to manage the proposed increase in the minimum wage without an adjustment in their percentage of revenue allocation.

“To manage a N62,000 minimum wage, we desperately need a review in the allocation framework. As it stands, most of our budget is dedicated to existing wage commitments, leaving little room for other critical responsibilities,” Muazu-Maifata explained.

In the midst of these discussions, financial expert Bismarck Rewane cautioned against the potential economic repercussions of wage increases not matched by productivity enhancements. Rewane advocates for balanced negotiation processes that consider the broader implications on national productivity and economic well-being.

“The focus should extend beyond mere figures to considering the overall economic impact of wage adjustments. Achieving a sustainable balance between wage levels and national productivity is paramount,” Rewane advised.

Hot this week

Cyberbullying and Cyberstalking: A New Craze for Muffling Expressions on Social Media in Nigeria

In the digital age, social media has emerged as...

NDLEA Cracks Down on Trans-Border Drug Cartel, Seizes 190,960 Tramadol Pills

Nigeria’s anti-drug agency has dismantled a major trans-border drug...

OPEC Chief Criticizes Net-Zero Targets, Calls for Balanced Energy Policies

The push for net-zero emissions by mid-century risks sidelining...

JAMB Warns Universities Against Fake A’Level Admissions, Threatens Sanctions

Nigeria’s Joint Admissions and Matriculation Board (JAMB) has issued...

Dangote Group to Invest $400M in Ethiopia Cement Expansion Amid Market Growth

Africa’s richest man, Aliko Dangote, is doubling down on...

Jimoh Moshood Appointed Lagos Police Chief Amid Rising Security Concerns

The Police Service Commission (PSC) has appointed Moshood Jimoh...

JAMB Warns Universities Against Fake A’Level Admissions, Threatens Sanctions

Nigeria’s Joint Admissions and Matriculation Board (JAMB) has issued...

South Africa Weighs Nuclear Bids from Russia and Iran, Risking U.S. Fallout

South Africa is considering bids from Russia and Iran...

NDLEA Cracks Down on Trans-Border Drug Cartel, Seizes 190,960 Tramadol Pills

Nigeria’s anti-drug agency has dismantled a major trans-border drug...

WAEC 2024 Results: 67.55% of Private Candidates Secure Five Credits or More

The West African Examinations Council (WAEC) has released the...

Tinubu Blocks AU Proposal to Split Political Affairs and Security Department

President Bola Tinubu has rejected a proposal to divide...

Dangote Group to Invest $400M in Ethiopia Cement Expansion Amid Market Growth

Africa’s richest man, Aliko Dangote, is doubling down on...

Djibouti’s Youssouf Secures AU Commission Chair, Pledges Security and Unity

Djibouti’s Foreign Minister, Mahmoud Ali Youssouf, has emerged as...

Related Articles

Popular Categories