N30, 000 minimum wage not realistic for states- Gov Umahi

Governor of Ebonyi state, David Umahi, says the N30, 000 being proposed as minimum wage is not realistic as 95% per cent of states in the country will not be able to pay.

Umahi, who disclosed this in Abakaliki, Ebonyi state capital on Wednesday, said the payment of the N30, 000 can only be realised if the federation account allocation formula is reviewed to offer more earnings to states.

The governor said: “The federal government collects 52 percent of the revenue from the federation account and when I tried to put the N30,000 figure to local government areas (LGA) it means they will borrow N1 billion to add to their allocation, in paying salaries.

“I will definitely not be a governor to govern such a state and will never preside over a state that will allocate 100 percent of its earnings to pay salaries.”

He urged the country’s leaders and labour to liaise and decide on the percentage of the federation account that should be voted for salaries and other sectors.

“We should determine how much should be allocated to education, health, infrastructure among others if 100 per cent of earnings are used to pay workers’ salaries,” Umahi said.

“Many states are experiencing various problems and cannot pay salaries but the people condemn their governments over their inability to provide good roads and other amenities.

“People don’t understand the problems being experienced by these states and the governors have kept quiet for long and need to speak presently.”

Recall that the tripartite committee led by Amma Pepple, former head of service, had recommended N30, 000 as the new minimum wage.

While receiving the report, Buhari promised to send an executive bill to the national assembly on the recommendation as soon as possible for consideration and approval.