Governors Seek New Revenue Formulae Over N18K Minimum Wage

Source: THEWILL. -

ABUJA, Feb 27, (THEWILL) – State Governors have expressed worries over the N18, 000 new minimum wage bill just passed by the National Assembly and have resolved to consult with President Goodluck Jonathan over a possible new revenue sharing formula between the three tiers of government to enable states meet their obligation to workers as soon as the President puts his seal on the bill.

The governors rose from a meeting at the Kwara State Government Lodge which doubles as a secretariat of the Nigeria Governors’ Forum (NGF) and went straight to the Presidential villa to seek audience with the President.

Director General of the forum, Mr. Asishana Okauru who briefed reporters on the outcome of the meeting said the governors deliberated on various issues including the new minimum wage and its implications on the revenue portfolio of some states.

Under the present revenue sharing formula, the Federal Government gets 52.68 per cent, states take home 26.68 per cent, while the 774 local governments receive 20.60 per cent. Oil producing states however get an additional 13 per cent as derivation fund.

The NGF also said it set up a six-man committee headed by Lagos State Governor, Mr. Babatunde Fashola (SAN), to anchor their position. The other members are the Governors of Sokoto, Niger, Rivers, Adamawa and Enugu.

Reading from the communiqué issued at the end of the meeting, Kwara State Governor and Chairman of the forum, Dr Bukola Saraki said, “the forum must address the revenue allocation formula, a committee to be set up to prepare for constitutional changes will consist of Lagos, Anambra, Enugu, Sokoto, Adamawa, Rivers with Lagos Governor as chairman.”

The bill becomes binding on all theirs of government as soon as the President signs it into law.