THERE needs to be no hiding place for all tiers of presidency now that President Bola Tinubu has signed the brand new minimal wage regulation. The fee of the newly agreed minimal wage of N70,000 was meant to have kicked off in April following the expiration of the previous minimal wage of N30,000, signed into regulation in 2019 by Muhammadu Buhari.
Though wages are notoriously low in Nigeria, it’s a advanced matter. In the 2010 negotiations for N18,000 from N12,000 per thirty days, the governors claimed they may not pay. They then manipulated President Goodluck Jonathan to raid the Excess Crude Account earlier than agreeing to the increment.
Many states are adamant that they can not pay the brand new wage, or they are going to go bankrupt. However, all three tiers of presidency have extra money after the removing of petrol subsidies in May 2023.
A report by the Nigeria Governors’ Forum mentioned if wages have been elevated by 50 per cent, 13 states would go bankrupt. Data Services and Resources analysts recognized many states incapable of financing a brand new minimal wage.
A report by the Nigeria Labour Congress famous that 15 states have but to implement the N30,000 minimal wage of 2019. This is unbelievable.
Indeed, to cowl the N30,000 fee, the Federal Government resorted to borrowing. The personal sector is contending with a number of taxes, excessive power prices, and steep recurrent and tacky infrastructure.
For state governments, it’s time to reduce their coats in keeping with their garments. The governments give the impression that they’ve funds with the obscene show of wealth amongst public officers. Between 2021 and 2023, regardless of spending at the very least N21.04 billion on abroad journeys, 14 state governments failed to draw any overseas investments into their domains. Between 2021 and the third quarter of 2023, these states didn’t entice any of the $14.85 billion overseas investments channelled into Nigeria.
Governors are spending the cash their states don’t have, thereby piling debt for future generations. This has develop into a systemic drawback, as governors know that cash will all the time come from the Federal Accounts Allocation Committee, making them extraordinarily lazy about producing income.
In distinction, California, within the United States, recorded a GDP of $3.6 trillion in 2022, making it the fifth-largest financial system globally.
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In the Second Republic, the late Adekunle Ajasin within the previous Ondo State travelled out of Nigeria to Sierra Leone solely as soon as. The late Lateef Jakande stayed in his home as governor of Lagos and developed main infrastructure and housing estates which can be nonetheless standing. Bisi Akande was mocked for his frugality however laid a superb basis for the event of Osun.
Therefore, there should be accountability within the states. Instead of constructing non-viable airports and different white elephants, the governors ought to reduce down the price of governance and deal with insecurity whereas the obscene pensions being paid to ex-governors are stopped. The legislators, who’re complicit on this macabre dance, should convey the governors to account.
The states ought to put money into human capital and infrastructure, discover inside assets of their domains, develop agriculture, and put money into tourism to generate earnings. The citizens ought to be capable to punish wasteful governors throughout elections.
Nigeria is richly endowed with 44 recognized mineral varieties throughout the 36 states and the Federal Capital Territory. These embody gold, bitumen, limestone, iron ore, coal, columbite, and gem stones. Kogi has a large variety of minerals. According to the Ministry of Mines and Steel Development, Nigeria’s bitumen deposit is the second largest on this planet. Mostly present in Ondo, adopted by Lagos, Ogun, and Edo states, the nation has 42.47 billion tonnes in confirmed reserves.
States ought to harness these minerals to generate earnings.
When states can generate sufficient income, points surrounding the fee of minimal wage will probably be resolved.