Governor of Ekiti State, Kayode Fayemi, has said that the Federal Government must revisit the current revenue allocation formula, if state governments must pay the new minimum wage being requested by workers.
He also acknowledged that N30, 000 minimum wage was not a comfortable living wage for workers, saying he was convinced governors would pay if the Federal Government created the enabling environment for them to do so.
Fayemi aired his views on the contentious issue while receiving the President of the Nigeria Labour Congress (NLC), Mr Ayuba Wabba, who paid him a courtesy visit in his office, in Ado-Ekiti.
According to him, Ekiti, which received one of the lowest allocations in the country, would require extra N2bn monthly to be able to pay the new minimum wage and doing that would drive the state’s wage bill to N4.6bn monthly. He however disclosed that the state was currently paying N19, 350 as against the N18, 000 minimum.
Fayemi stressed that the issue of affordability was paramount in paying the proposed minimum wage noting that many states faced the challenge of affordability though he was quick to say he was not speaking for any governor.
His words: “I am not holding brief for the governors because I am the youngest among them, having only come to office barely a month ago. So, I cannot speak on what has transpired in your negotiation in the course of this tripartite committee.”
Fayemi said if he were, however, to put himself in the shoes of his colleagues, giving the fact on ground in Ekiti, he believed it was only a question of affordability, ability to pay.
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“As long as we have the revenue allocation formula that we have in the country, even in states where you have willing partners and comrades that are not going to contend the N30, 000 figure, if nothing is done about current revenue allocation, this will be tough on states.
“In fact, this N30, 000 is not even enough, Mr. President, I don’t know anyone who can really live comfortably on N30, 000, let alone the N18, 000 we are currently paying.
“I think we need a collective approach to this beyond the game of numbers.
“The workers are very critical components to the productive base of our country, because it is the human capital and it has to be motivated human capital.
“It has to be an enthusiastic human capital that can deliver the goods to the populace,” Fayemi said.
In his comments, the NLC President, solicited the cooperation of all governors in the payment of the N30,000 minimum wage saying that all states should be able to afford it.
He commended Fayemi on the recent release of N200m for teachers’ car and housing loans as well as the abolishing of development levies in public primary and secondary schools in the state, among others noting that the administration demonstrated love for the workers’ welfare.
“We know your pedigree and I am not surprised about this. We know you are a friend of workers.
“In 2012, you were the first to pay the N18, 000 minimum wage in the South West and second in
Nigeria. You even paid N19, 300,” the NLC leader said.
He urged the state governments to block all forms of leakages that may bar them from paying workers what is due to them and expressed optimism that government would take all necessary steps at ensuring that the new minimum wage is paid.
The NLC leader was accompanied on the visit by some national and Ekiti State labour union leaders.