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Minimum wage: New minimum wage may push states into bankruptcy — NGF report

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As the nation awaits the new minimum wage promised to be sent to the National Assembly by President Bola Tinubu, the burden of implementing the minimum wage may make many states bankrupt.

The Federal Executive Council, at its meeting last Tuesday, stepped down a memorandum on the report of the tripartite committee on the new minimum wage, to allow for more consultations among the federal and state governments on one part, the private sector and the labour unions on the other part.

Last Thursday, Tinubu met with the governors at the National Economic Council meeting chaired by Vice President Kashim Shettima. The meeting, which was expected to deliberate on the national minimum wage, was, however, silent on whether or not it considered the issue.

Also last Thursday, the Southern Governors’ Forum released the communiqué of its meeting held in Abeokuta, Ogun State, with the governors asking that each state should negotiate minimum wage with its workforce.

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The labour unions have, however, reacted to the stance of the Ni¬geria Governors’ Forum over their overbearing influence on the minimum wage negotia¬tions.

In a document, titled, “Analysis of State FAAC inflows and state expenditure profile,” of the Nigeria Governors’ Forum Secretariat, the NGF report warned that implementing the new minimum wage could push states into bankruptcy due to increased recurrent expenditure.

According to the report, the burden of recurrent expenditure already left Abia, Ekiti, Gombe, Imo, Katsina, Kogi, Oyo, Plateau, Sokoto, Yobe, and Zamfara in deficit in 2022.

The report predicted that if the recurrent expenditure increased by 50 per cent, 13 states would fall into deficit, with only 10 remaining financially stable.

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The tripartite committee’s recommendation of a N62,000 minimum wage would necessitate over a 100 per cent increase from the current N30,000, potentially leaving only a few states like Anambra, Bayelsa, Borno, Ebonyi, Gombe, Imo, Jigawa, Kaduna, Lagos, and Rivers with positive net revenues, based on the 2022 fiscal data.

A net revenue is the deduction of recurrent expenditure from the total revenue of the state. When it is positive, it means a surplus, but when negative, there is a deficit.

Also, the total revenue of states is calculated from the monthly revenue from the Federal Account Allocation Committee, internally generated revenue, aids and grants and constituency development funds.

According to the documents, with an employment size of about 58,631 workers, pays N5,837,899,980.40 as wage monthly. Anambra has a 20,541 employment size and pays N1,824,851,308.96 monthly as wages, apart from N894,480,399.62 as pension obligation and N579,694,680.33 for debt servicing.

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Bayelsa boasts of 48,213 workforce, paying N5,802,435,178.58 monthly, with N1,194,528,784.40 as pension obligation and N3,535,787,992.48 as debt servicing, totalling N10,532,751,955.46 as total recurrent expenditure monthly.

Benue has about 13,366 workers in its workforce and pays N2,040,184,471.85 as monthly wage, N76,838,634.62 for pension, and N64,685,126,826.08 for debt servicing, totalling N66,802,149,932.56 monthly.

Delta has about 50,871 workers, offering N8,973,081,853.50 as wages, N1,499,886,303.39 as pension, and N72,417,433,139.00 as debt servicing, accumulating to N82,890,401,295.89 in a month.

Jigawa has about 44,831 workers in its employ and pays N2,795,662,113.02 as wages, and N345,987,843.12 as a pension, totalling N3,141,649,956.14 monthly on recurrent expenditure.

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Katsina, Kwara and Niger have 19,062, 36,048 and 22,225 workers, with accumulated N139,294,944,565.27, N4,457,268,675.54 and N2,653,614,213.35 monthly recurrent expenditure respectively.

According to the document, Abia has a total recurrent expenditure of N111,983,979,958.62, against a total revenue of N147,637,730,867.73.

For Adamawa, the recurrent expenditure stands at N70,369,399,885.57, against a total revenue of N109,722,949,684.65, while Akwa Ibom boasts of a high revenue of N444,288,683,000, with recurrent expenditure of N235,144,539,000.

Of the states, Lagos has the highest total revenue, amassing N1,243,778,878,170 in 2022, with a recurrent expenditure of N621,043,036,000, followed by Delta, with N702,020,717,460.08 and a recurrent expenditure of N377,905,100,451.83.

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Rivers amassed N525,588,159,714.88 in 2022, with recurrent expenditure of N186,974,715,774.87; Kaduna had a total revenue of N222,349,875,000 and expenditure of N95,987,999,472.10; Ogun, N297,249,009,626.83, recurrent expenditure of N178,519,010,628.42 and Oyo, with total revenue of N247,156,776,739.70 and recurrent expenditure of N152,077,804,384.65.

Kebbi State had the lowest total revenue in 2022, raking in N92,132,444,588.16 and spent N57,601,464,374.96 on recurrent expenditure, followed by Taraba, with a total revenue of N101,177,283,069.87 and recurrent expenditure of N75,055,201,412.62.

Aside from FAAC allocation, some states recorded poor IGR in the 2022 data compiled by the NGF Secretariat.

Zamfara State generated N6,513,960,477.20; followed by Kebbi, with N8,630,767,122.96; Taraba, N9,744,331,840.01 and Yobe State, with N9,940,554,642.00.

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The IGR of Katsina (N12,821,119,042.64), Adamawa (N13,175,774,969.53), Niger (N14,427,373,136.00), Benue (N15,021,223,729.38), Plateau (N15,927,001,739.90) and Imo (N16,711,346,111.18) also showed a poor revenue standing.

The PUNCH reported on October 19, 2023, that 15 states have yet to implement the N30,000 minimum wage for their workers since it was signed into law in 2019.

According to BudgiT, though the 15 states were yet to implement the minimum wage of N30,000, the 36 states of the federation grew their cumulative personnel cost by 13.44 per cent to N1.75tn in 2022 from N1.54tn in 2021.

The civil society organization, in a release, ‘The States of States Report 2023,’ highlighted that the 36 states of the federation grew their revenue by 28.95 per cent from N5.12tn in 2021 to N6.6tn in 2022.

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“Put together, the IGR of the 36 states appreciated by 12.98 per cent from N1.61tn in 2021 to N1.82tn in 2022, denoting a strengthened domestic revenue mobilisation capability.

“Nonetheless, the IGR to GDP ratio remained very low at 1.01 per cent. The increase in IGR did not reflect across the board as 17 states experienced a decline in their IGR from the previous year, while 19 states recorded positive growth,” BudgIT said.

The Assistant General Secretary of the NLC, Chris Onyeka, in an interview with the News Agency of Nigeria on minimum wage and its implementation, claimed that many state governors were flouting the Minimum Wage Act and listed the states of Abia, Enugu, Bayelsa, Delta, Nasarawa, Gombe, Adamawa, Niger, Sokoto, Imo, Anambra, Taraba, Benue, and Zamfara as defaulting.

Reacting, the Enugu State chairman of TUC, Ben Asogwa, said the state commenced payment of N30,000 minimum wage and its consequential adjustment in February 2020 for state government workers, while local government workers and primary school teachers were paid 25 per cent consequential adjustment.

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He, however, said Governor Peter Mbah, on assumption of office, approved the full implementation of the N30,000 minimum wage for both the LG workers and primary school teachers in the state.

The Zamfara State Governor, Dauda Lawal, announced during a meeting with the leadership of the labour unions that the state would begin payment of N30,000 minimum wage effective June 2024.

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Atiku Condemns Proposed N50,000 WAEC, NECO Examination Fees

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Former Vice President Atiku Abubakar has criticised the Federal Government’s decision to approve a uniform N50,000 registration fee for the Senior Secondary School Certificate Examinations (SSCE) conducted by the West African Examinations Council (WAEC) and the National Examinations Council (NECO), warning that the policy could further limit access to education for millions of Nigerian students.

The Federal Government, through the Federal Ministry of Education, approved the adoption of a uniform N50,000 registration fee for WAEC and NECO SSCE internal examinations, effective from 2027.

Under the new arrangement, NECO’s registration fee will increase from N30,000 to N50,000 per candidate, while WAEC’s fee will rise from N27,000 to the same amount.

The approval was contained in a memo dated June 18, 2026, signed by the Director of Senior Secondary Education at the Federal Ministry of Education, Adeniji Ibrahim, on behalf of the Minister of Education. The memo, addressed to the Registrar of NECO, stated that the decision followed a meeting between the ministry and examination bodies held on March 31, 2026, where stakeholders agreed to adopt a harmonised fee structure.

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Reacting in a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku described the planned increase as “cruel, economically insensitive and fundamentally incompatible” with the government’s obligation to make education accessible to every Nigerian child.

He argued that the policy comes at a time when many households are grappling with rising inflation, escalating food and transportation costs, higher electricity tariffs, unemployment and declining purchasing power.

“It is unconscionable that at a time when Nigerian families are battling record inflation, soaring food prices, rising transportation costs, crippling electricity tariffs, stagnant incomes and widespread unemployment, the Tinubu administration has chosen to make education even more expensive,” Atiku said.

The former vice president maintained that education remains one of the most important pathways to social mobility, warning that higher examination fees could force more children out of school and deny qualified students the opportunity to pursue higher education.

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“Every additional financial burden imposed on parents translates into another child being denied the opportunity to learn, dream and contribute meaningfully to society,” he said.

He noted that Nigeria already has one of the world’s largest populations of out-of-school children and argued that government efforts should be focused on reducing educational barriers rather than introducing policies that could worsen the situation.

“Nigeria already bears the painful distinction of having one of the largest populations of out-of-school children in the world. Any government confronted with such a national emergency should be investing aggressively to bring these children back into school,” he added.

Atiku further warned that the increase in WAEC and NECO fees, alongside the recent hike in fees for Federal Unity Colleges, would disproportionately affect low- and middle-income families already struggling to meet basic needs.

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According to him, many academically qualified students may be unable to sit for the qualifying examinations required for admission into tertiary institutions due to financial constraints.

“The recent increase in WAEC and NECO examination fees represents far more than another financial burden on parents. It is a systemic filter that will inevitably restrict access to tertiary education for thousands of indigent but academically qualified Nigerian students,” he stated.

He also criticised the Federal Government’s reliance on the Nigerian Education Loan Fund (NELFUND), arguing that student loans cannot solve the challenges facing children who are unable to complete secondary education or afford examination fees.

“A university loan offers little comfort to a child who has already been priced out of secondary education or cannot afford the qualifying examination required to secure admission,” he said.

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Atiku called on the Federal Government to prioritise investment in educational infrastructure, recruit more qualified teachers, expand the capacity of public tertiary institutions and implement policies that ensure poverty does not determine a child’s access to education.

He urged President Bola Tinubu’s administration to immediately reverse the increase in Unity School fees and the proposed N50,000 WAEC and NECO examination fees, while convening stakeholders to develop sustainable funding mechanisms for public education.

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SERAP sues INEC over alleged N800bn APC govs campaign fund

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The Socio-Economic Rights and Accountability Project has sued the Independent National Electoral Commission over alleged failure to investigate claims that governors elected on the platform of the All Progressives Congress diverted N800bn for political and campaign activities.

SERAP, in the suit filed before the Federal High Court in Abuja, is asking the court to compel INEC to probe allegations that APC governors have been making monthly contributions from their Federation Account Allocation Committee allocations into a dedicated fund for President Bola Tinubu’s 2027 re-election campaign.

The suit, marked FHC/ABJ/CS/1426/2026, was filed by SERAP’s lawyers, Kolawole Oluwadare and Kehinde Oyewumi.

The organisation is seeking an order of mandamus directing INEC to demand full disclosure from the governors and the APC on the alleged campaign fund, including the identities of contributors and the sources of the funds.

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SERAP is also asking the court to compel the electoral body to investigate whether political parties and candidates are complying with the provisions of Section 91 of the Electoral Act on campaign finance limits and transparency.

According to SERAP, the allegations raised concerns about political finance accountability, electoral fairness and the ability of Nigerians to freely participate in the democratic process.

“Opaque political financing remains a major entry point for corruption and a threat to democratic legitimacy.

“Nigerians deserve to know who funds the candidates or political parties of their choice and the sources of any such funding,” SERAP said.

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The organisation argued that the alleged use of public resources for political advantage could undermine confidence in Nigeria’s electoral system.

“The abuse of state resources for electoral advantage undermines democratic integrity and public trust. Fairness, transparency, and accountability in political or campaign finance are essential safeguards against corruption, state capture, and undue influence in democratic processes,” it stated.

SERAP maintained that INEC has a constitutional responsibility to monitor political financing and ensure that parties and candidates comply with campaign finance regulations.

“The commission has constitutional and statutory obligations to ensure that no individual or political party exceeds legally prescribed contribution limits, whether directly or indirectly, and to ensure full transparency regarding the origin and quantum of political funding,” the suit read.

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The group said allegations involving large financial resources and possible misuse of public funds required urgent intervention by INEC to protect the credibility of the 2027 general elections.

“The allegations of diversion or opaque use of public funds pose a grave risk to the integrity of the 2027 general elections,” SERAP stated.

It argued that any deployment of public funds for political purposes could distort competition among candidates and political parties.

“Where public resources are allegedly diverted or deployed for political and campaign purposes, the result is not merely financial impropriety; it is a direct distortion of electoral competition,” the suit added.

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SERAP also relied on provisions of the 1999 Constitution, the Electoral Act, the African Charter on Human and Peoples’ Rights, the International Covenant on Civil and Political Rights and the United Nations Convention Against Corruption.

SERAP argued that Section 14(2)(c) of the Constitution, which guarantees citizens’ participation in government, places an obligation on institutions to protect the integrity of the democratic process.

“The provision also imposes a binding obligation on all institutions, including INEC, to safeguard the integrity of the democratic process.

“Section 15(5) of the Nigerian Constitution requires public institutions to abolish all corrupt practices and abuse of power. Section 13 imposes a clear responsibility on INEC to conform to, observe and apply the provisions of Chapter 2 of the Constitution.

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“Article 13 of the African Charter on Human and Peoples’ Rights guarantees every citizen the right to participate freely in government. Similarly, Article 25 of the International Covenant on Civil and Political Rights requires that elections reflect the free expression of the will of the electorate. Nigeria has ratified both treaties.

“Nigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources. Articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on the Commission to ensure proper management of public affairs and public funds.

“These commitments ought to be fully upheld and respected. Article 7(3) of the Convention requires institutions, including INEC, to ensure political finance transparency. The provisions aim to prevent corruption in and through elections,” the suit read.

It further stated that the alleged deployment of public resources for political purposes would not only amount to financial impropriety but could distort electoral competition.

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“Where public resources are allegedly diverted or deployed for political and campaign purposes, the result is not merely financial impropriety; it is a direct distortion of electoral competition,” it added.

The group said any use of public funds for political advantage would constitute “a grave violation of national and international standards and a threat to electoral credibility.”

The organisation said these legal frameworks impose obligations on public institutions to promote transparency, accountability and fairness in electoral processes.

No date has been fixed for the hearing of the suit.

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State police will end insecurity in North, says Barau

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The Deputy President of the Senate, Barau Jibrin, has described President Bola Tinubu’s push for the establishment of state police as a “masterstroke” that would significantly strengthen Nigeria’s security architecture and help tackle insecurity, particularly in Northern Nigeria.

Barau stated this during an interview on Hannu Da Yawa, a live Hausa programme on Radio Nigeria, Kaduna.

A statement issued on Sunday by his Special Adviser on Media and Publicity, Ismail Mudashir, said the Deputy Senate President fielded questions from callers across northern Nigeria during the two-hour programme, where he explained the rationale behind the State Police Bill recently passed by the Senate.

According to him, the executive bill, initiated by the President, was the product of extensive consultations involving the Presidency, the National Assembly, the Inspector-General of Police, retired police officers, policing experts, governors, civil society organisations and members of the public.

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The chairman of the Senate Committee on Constitution Review said the proposal had also undergone public hearings across the six geopolitical zones and the Federal Capital Territory, with several safeguards incorporated to prevent abuse.

“President Tinubu carefully studied the situation and discovered that while many Nigerians support state police, there are fears that it could be abused or misused for political or ethnic purposes. That is why safeguards have been built into the system,” Barau said.

He explained that state police would complement, rather than replace, the Nigeria Police Force by enhancing community-based policing through officers recruited from their local communities.

“State police operatives, who will be recruited from local communities, know the people, terrain and even the criminals. This will significantly improve our response to banditry, kidnapping and other crimes.

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“The North stands to benefit significantly. This initiative is designed to bring lasting peace to the worst-hit areas,” he said while responding to a question from Zubairu Mohammed, a farmer from Kankia Local Government Area of Katsina State.

The Deputy Senate President said the proposed constitutional framework contained adequate legal protections and institutional checks to guard against political interference or abuse.

“If state police are used for intimidation or actions that threaten lives and property, the President has the constitutional authority to intervene and direct the Federal Police to take over,” he said in response to a question from Abubakar Auwal of Sokoto State.

Barau also reassured Nigerians that responsibilities would be clearly defined between the federal and state police services, with the Nigeria Police Force retaining responsibility for national security matters such as terrorism and cybercrime, while state police would focus on internal law enforcement and public order.

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Responding to a question from Nazifi Ibrahim of Zaria, Kaduna State, the lawmaker said state police commandants would be appointed through a rigorous process and protected by law from undue political interference.

He also acknowledged concerns over funding and operational capacity, saying the necessary financial frameworks and operational standards would be developed as the constitutional amendment process and enabling legislation progressed.

Barau expressed confidence that state Houses of Assembly would support the initiative and urged Nigerians to embrace the reform as a necessary step towards addressing the country’s security challenges.

“We must re-engineer our security architecture to better protect lives and property while guarding against abuse.

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“This is a balanced, consultative initiative built on safeguards and aimed at bringing policing closer to the people,” he said.

The Senate recently passed the Constitution Alteration Bill seeking to create a state police as part of ongoing amendments to the 1999 Constitution.

The proposal, which has generated nationwide debate over its benefits and possible misuse by state governments, is expected to undergo further legislative processes, including consideration by state Houses of Assembly, before it can become law.

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