TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

States and the new minimum wage – Punch

The Citizen by The Citizen
November 10 2019
in Public Affairs
A A
0

The battle for the full implementation of the new minimum wage has moved to the states following the Federal Government’s conclusion of negotiations on consequential adjustments of salaries of higher income earners with the Joint National Public Service Negotiating Council.

Under the agreement, workers on salary Grade Level 07 received 23.2 per cent pay rise; those on GL 08, 20 per cent; and GL 09 got 19 per cent. Officers on GLs 10 to 14 got 16 per cent hike, just as levels 15 to 17 officers had 14 per cent upward review. Together with consolidated salary structures of universities, polytechnics and colleges of education, federal monthly wage bill currently stands at N611 billion. And a directive has been given to the ministries, agencies and departments to ensure that arrears of the new wage regime from April when the Act came into effect be cleared before the end of December.

After the FEC meeting that ratified the deal, the Minister of Labour and Employment, Chris Ngige, said, the council directed “…that the National Salaries, Income and Wages Commission and the Ministry of Labour and Employment should send the consequential adjustments table down to the state and local governments as an advisory document for their information and guidance for their National Joint Public Service status in their respective states because the national minimum wage is a national law.”

All this has enormous pressure on the states, which met shortly to review the situation. The governors, under the aegis of Governors’ Forum, have ruled out any imposition of the federal template on the states. The NGF Chairman, Kayode Fayemi of Ekiti State, said “There are different issues at states level. Every state has its own trade unions and joint negotiation committee and they will undertake discussions with their state government.” This is the ideal.

The N30, 000 minimum wage has come to stay for the states as they were part of the tripartite committee that fixed it. But the NGF chairman stressed that while such wage review compels consequential adjustment, it is imperative for all concerned to appreciate that what is primarily involved is minimum wage review, not a general wage increase.

While wage adjustment is non-negotiable, prevailing high inflationary pressure has also made it unavoidable for the states. However, they should do so based on their resources or capacity to pay and size of their workforces.

Available official statistics demonstrate the fact that states have different financial capacities, which, invariably, impact on governance or policy trajectories. The National Bureau of Statistics,  for instance, indicate that the January to June summary of internally generated revenues for these states are as follows: Lagos – N205.16 billion;  Rivers – N75.97 billion; Osun – N10.2 billion; Kebbi – N4.72 billion; Taraba – N3.27 billion, Yobe – N2.2 billion; Gombe – N2.08 billion and Ebonyi N5.14 billion. Therefore, it will be unreasonable for negotiation committees in Yobe and Gombe states to expect their workers to have pay parity with their counterparts in Lagos and Rivers states. These are economic imperatives of federalism.

In the United States, an archetype of a federal system, wage differences exist from state to state because of their uneven resources or abilities. A report of the US National Conference of State Legislatures dated July 2019, stated that 18 states began the year with higher minimum wages. Eight states – Minnesota, Florida, New Jersey, Ohio, Alaska, Vermont and South Dakota – increased the minimum wage as a result of increasing cost of living. But 10 others among them, California, Massachusetts, New York and Washington, raised their rates based on earlier legislative approval.

The JNPSNC, which met with their counterparts from the 36 states on Tuesday to mentor them on the intrigues or strategies to avoid being outfoxed by state governments, should be conscious of this fact.  National interest and reason are crucial.

But states, which are still on budget life support from the Federal Government, and have yet to thoroughly cleanse their monthly payroll through the Integrated Payroll Personnel Information System to remove ghost workers and pensioners are already in a blind alley. Also, not streamlining of the MDAs to free them from over-lapping functions and workers redundancy; maintaining wage bills that outweigh monthly revenues and governors with high number of needless aides compound the mess.

Payroll fraud is a monstrosity, which government at all levels must exorcise from public service, supported by the organised labour. Bayelsa has tamed this scourge considerably going by the N3.9 billion it saved annually from its eight local councils’ payrolls purge. Nembe council’s wage bill was reduced from N127million to N99 million; Yenagoa N194 million to N147 million; Southern Ijaw N201 billion to N131 million, among others. Kaduna State has also done well in this regard, to the point that it is one of the few states whose capital expenditures have risen above recurrent.

But whether it is in Kaduna, Bayelsa or elsewhere, a root-and-branch approach is required for the reforms to endure by ensuring the syndicates face maximal penal hammer. States are supposed to be vibrant economic units in a federal polity as the regions they replaced were in the First Republic. Lack of creativity in governance, however, is why the huge agricultural potential and 34 confirmed solid mineral types spread across the states are untapped. This anomaly should be reversed. A recent revelation by the Governor of the Central Bank of Nigeria, Godwin Emefiele, that Nigeria made $23 billion from crude sales in 2017 while Malaysia harvested $22 billion from the sale of palm oil, should inspire acute reflections by states so endowed with the resource, but prefer to rush to Abuja monthly for money. Emergent economic realities are indeed ominous and require corresponding response.

Previous Post

Kogi/Bayelsa governorship elections – Thisday

Next Post

30th Anniversary: Germany celebrates fall of Berlin Wall

Related Posts

Apapa gridlock must be resolved permanently – Punch
Public Affairs

Apapa gridlock must be resolved permanently – Punch

July 23 2026
Duty waivers must not become a fiscal hole – Punch
Public Affairs

Duty waivers must not become a fiscal hole – Punch

July 20 2026
State airports: White elephant epidemic – Punch
Public Affairs

State airports: White elephant epidemic – Punch

July 17 2026
Jega resonates loudly on Electoral Act underbelly – Punch
Public Affairs

Jega resonates loudly on Electoral Act underbelly – Punch

July 14 2026
Almajiri Commission: Stop this budgeting absurdity – Punch
Public Affairs

Almajiri Commission: Stop this budgeting absurdity – Punch

July 13 2026
Boko Haram destroyed over 500,000 houses in North-East – Agency
Public Affairs

Deadly toll of living with terrorism – Punch

July 9 2026
Next Post
30th Anniversary: Germany celebrates fall of Berlin Wall

30th Anniversary: Germany celebrates fall of Berlin Wall

Leicester cool on Premier League title race after move to second spot

Leicester cool on Premier League title race after move to second spot

Leave a Reply Cancel reply

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

FROM THE GRASSROOTS

Sokoto LG chairman quits APC, resigns from office

Sokoto LG chairman quits APC, resigns from office

by The Editor
July 8 2026
0

...

Bauchi Electoral Commission fixes August 17 for LG election

Bauchi Electoral Commission fixes August 17 for LG election

by The Editor
June 19 2026
0

...

Court grants indigenous status to Hausas born in Jos North

Court grants indigenous status to Hausas born in Jos North

by The Editor
June 11 2026
0

...

42-year-old Sheikh Dasuki emerges Chief Imam of Ilorin

42-year-old Sheikh Dasuki emerges Chief Imam of Ilorin

by The Editor
June 11 2026
0

...

APPOINTMENTS

Tinubu appoints Fayose REA chairman, names 25 others

Tinubu appoints Fayose REA chairman, names 25 others

by The Editor
July 20 2026
0

...

Tony Elumelu to step down as UBA chair, bank names successor

Tony Elumelu to step down as UBA chair, bank names successor

by The Editor
July 6 2026
0

...

Sahara Group appoints Folake Soetan as Arahas MD to drive oilfield services transformation across Africa

Sahara Group appoints Folake Soetan as Arahas MD to drive oilfield services transformation across Africa

by The Editor
July 3 2026
0

...

Tinubu appoints new NUC chairman

Tinubu appoints new NUC chairman

by The Editor
June 23 2026
0

...

ODDITIES

Nigerian woman in Canada demands husband swear oath against cheating before visa sponsorship

Nigerian woman in Canada demands husband swear oath against cheating before visa sponsorship

by The Editor
July 23 2026
0

75-year-old man bags 10 years jail for defiling minor

75-year-old man bags 10 years jail for defiling minor

by The Editor
July 16 2026
0

Court remands blogger over defamation of Soludo, son

Court remands blogger over defamation of Soludo, son

by The Editor
July 13 2026
0

GLOBAL NEWS

Republican senators mount drive to oppose Biden certification

Insecurity: Instead of addressing persecution, Nigeria launched PR campaign – Ted Cruz

by The Editor
July 23 2026
0

...

Xenophobia: Nigerian students funded your freedom – Shettima reminds South Africa

Xenophobia: Nigerian students funded your freedom – Shettima reminds South Africa

by The Editor
July 21 2026
0

...

US Congress okays bill to cut foreign aid to Nigeria

US Congress okays bill to cut foreign aid to Nigeria

by The Editor
July 17 2026
0

...

Nine European countries, Ukraine form defence coalition

Nine European countries, Ukraine form defence coalition

by The Editor
July 14 2026
0

...

Putin orders Russian nuclear forces on high alert

EU, UK hit Russia with joint sanctions over cyber attacks

by The Editor
July 14 2026
0

...

State of the States

Gov. Adeleke deposes Oba Joseph Oloyede, Apetu of Ipetumodu

Osun: I’ve kept my promise of good governance – Adeleke

by The Editor
July 23 2026
0

...

Lagos blames heavy rainfall for worsening road conditions

Lagos blames heavy rainfall for worsening road conditions

by The Editor
July 17 2026
0

...

Kogi govt confirms rescue of abducted principal, NECO official, two students

Kogi govt confirms rescue of abducted principal, NECO official, two students

by The Editor
July 17 2026
0

...

Anambra agency cracks down on illegal street trading, shanties in markets

Anambra agency cracks down on illegal street trading, shanties in markets

by The Editor
July 14 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
APM accuses presidency of twisting Trump’s letter on Tinubu’s anti-terror fight

APM accuses presidency of twisting Trump’s letter on Tinubu’s anti-terror fight

July 23 2026
Lives of All Nigerians Carry Equal Value: ICADAR responds to Senate, House calls for reconsideration of Police withdrawal from VIPs

Minority caucus stages walkout as Reps pass Tinubu’s State Police bill

July 23 2026
Republican senators mount drive to oppose Biden certification

Insecurity: Instead of addressing persecution, Nigeria launched PR campaign – Ted Cruz

July 23 2026
Apapa gridlock must be resolved permanently – Punch

Apapa gridlock must be resolved permanently – Punch

July 23 2026

EDITORIAL REVIEW

Apapa gridlock must be resolved permanently – Punch

Apapa gridlock must be resolved permanently – Punch

by The Editor
July 23 2026
0

Duty waivers must not become a fiscal hole – Punch

Duty waivers must not become a fiscal hole – Punch

by The Editor
July 20 2026
0

State airports: White elephant epidemic – Punch

State airports: White elephant epidemic – Punch

by The Editor
July 17 2026
0

Jega resonates loudly on Electoral Act underbelly – Punch

Jega resonates loudly on Electoral Act underbelly – Punch

by The Editor
July 14 2026
0

Almajiri Commission: Stop this budgeting absurdity – Punch

Almajiri Commission: Stop this budgeting absurdity – Punch

by The Editor
July 13 2026
0

Opinion

Remi Tinubu under fire over akara, roasted corn remarks

Beyond ‘akara’ leadership

by The Editor
July 6 2026
0

...

Trump’s U-turn on Iran war ends Israel’s Middle East dream

Trump’s U-turn on Iran war ends Israel’s Middle East dream

by The Editor
June 17 2026
0

...

Terrorists kidnap Army Major General, wife in Katsina

Slain General: When the protectors need protection

by The Editor
June 17 2026
0

...

Bandits attack mosque, kill 1, abduct 9 in Kaduna

When terrorism becomes the talk of town

by The Editor
June 9 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.