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Minimum wage: New minimum wage may push states into bankruptcy — NGF report
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.
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.
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.
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.
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.
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.
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.
“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.
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.
News
Abuja stampede: Wike orders free medical treatment for victims
Federal Capital Territory (FCT) Minister, Nyesom Wike has ordered government hospitals to provide free treatment to the people that sustained injuries during a stampede at the Holy Trinity Catholic Church in Maitama, Abuja.
Wike gave the directive in a statement signed by his Senior Special Assistant on Public Communications and New Media, Mr Lere Olayinka, in Abuja on Saturday.
No fewer than 10 people including children lost their lives while 10 others sustained injuries to the stampede, during the distribution of food items to less privileged and the elderly by the church.
The sad incident occurred around 6:30 a.m on Saturday.
Wike said that the FCT Administration would ensure that the injured received adequate medical attention.
The minister, who commiserated with the victims, also directed that henceforth, police permission should be obtained by individuals or organizations planning public distribution of palliatives, either food items or cash.
Describing the incident as “painful”, Wike prayed for the repose of the souls of the lives that were lost and fortitude for their families to bear the irreparable loss.
He commended the Police and other security agencies for their prompt intervention, saying, “the promptness in which security agencies responded to the incident was commendable.”
In a related development, the FCT Emergency Management Department (FEMD), equally commiserated with the victims of the stampede.
The acting Director General of the department, Mr Abdulrahman Mohammed, in a statement said that nine out of the 10 injured persons earlier taken to Maitama District Hospital, have been treated and discharged.
Mohammed also appealed to organisations that intended to give out food items to the less privileged to involve security agencies or FEMD for adequate planning to ensure safety of beneficiaries.
He also advised the use of coupons and segregation of the beneficiaries into groups to avoid crowd and rowdiness that could lead to stampedes.
Similarly, the Police Command in the FCT has ordered organisations, religious bodies, groups, or individuals to notify the police when planning public events, charitable activities, or large gatherings in the territory.
In a statement by the Police Public Relations Officer in the FCT, SP Josephine Adeh, said that the notification was to enable the police to deploy adequate security measures for public safety.
According to her, failure to comply with the directive will result in the organisers being held liable for any incident or loss of life resulting from negligence
Meanwhile, the Nigeria Police Force has issued a warning against the unorganised distribution of palliatives and funfairs, which have led to stampedes and fatalities among vulnerable citizens.
The Force Public Relations Officer, ACP Olumuyiwa Adejobi, gave the warning during a media briefing on Saturday in Abuja.
Adejobi explained that the warning came in response to the increasing number of stampedes resulting in injuries and deaths, particularly during palliative distributions.
News
Just in: Albanian govt bans TikTok
Albanian Prime Minister Edi Rama has announced his government’s intention to ban TikTok for at least one year starting from January following the death of a schoolboy last month that further fueled fears about the influence of the short video-sharing platform on children.
“We are going to close it for a year, and we are going to start rolling out programs that will serve the education of students and help parents follow their children’s journey,” Mr Rama said during a meeting with teachers, parents and psychologists in Albania’s capital Tirana on Saturday.
Discussions around the negative impact of social media on children were further amplified a couple of weeks ago after a 14-year-old school was killed and another injured in a fight near a school in southern Tirana, with reports suggesting the confrontation began on social media.
“In China, TikTok promotes how students can take courses, how to protect nature, how to keep traditions, but on the TikTok outside China, we see only scum and mud. Why do we need this?” Mr Rama said.
He described TikTok as “the thug of the neighbourhood.”
This is the latest setback in TikTok’s moves to redeem its reputation over threats to national security and harmful influences on children in many countries.
The company said it is seeking urgent clarifications from the Albanian government about the proposed ban.
According to the BBC, TikTok said it found no evidence that the suspect who stabbed the 14-year-old boy or the victim himself had TikTok accounts.
TikTok is already banned in India, Iran, Nepal, Afghanistan and Somalia, with the U.S. moving to join the list after Congress passed a bill to ban the app in the country if its Chinese parent company, ByteDance, does not sell the platform by January 19 on national security grounds.
The U.S. Supreme Court has agreed to hear last-minute legal arguments from TikTok as to why it should not be banned or sold, with a hearing scheduled for January 10.
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Hunger! Anger as over 75 Nigerians die in Stampede while struggling for food
No fewer than 75 Nigerians seeking alms tragically lost their lives in stampedes over the past four days, sparking widespread anger across the Nigeria.
Amid the ongoing economic difficulties facing the population, almsgiving events have attracted large crowds, often resulting in fatal stampedes.
In the past four days alone, three separate stampedes have occurred during food and item distributions organized by individuals, groups, and religious organizations.
40 Children Die in Ibadan Funfair Tragedy
A tragic incident occurred on Wednesday, December 18, at the Islamic High School in Bashorun, Ibadan, where about 40 children lost their lives in a stampede at a funfair organized by Prophetess Naomi Shikemi, former wife of the Ooni of Ife. The Oyo State Police reported recovering 35 bodies at the scene, with six others severely injured and hospitalized. However, the death toll rose to 40 by December 20 as more victims succumbed to their injuries. Naomi and several event sponsors were arrested as the police began investigating the cause of the tragedy.
More Than 20 Dead in Anambra Rice Distribution Stampede
In Okija, Anambra State, a stampede at a rice distribution event organized by the Obijackson Foundation resulted in the deaths of at least 20 people on December 21. The large turnout and desperate scramble for the rice caused the tragedy. Several others remain critically injured.
The Federal Capital Territory was also affected by a stampede on Saturday, December 21, at the Holy Trinity Catholic Church in Maitama, where about 15 alms seekers were killed during a food distribution. According to the police, 10 bodies were recovered, including four children and six adults. However, witnesses reported more casualties. The incident occurred when the crowd exceeded expectations, and the organizers lost control of the situation.
Public Outcry and Criticism of Tinubu’s Government
The series of tragedies have prompted widespread criticism of President Bola Tinubu’s government, with many attributing the incidents to the worsening economic conditions in the country.
Human rights activist Omoyele Sowore declared that these events reflect the deep crisis Nigeria is facing under the current administration. He argued that the economic hardships have exacerbated the struggles of ordinary Nigerians.
Aisha Yesufu: Tinubu is Responsible
Aisha Yesufu, a prominent socio-political activist, expressed her dismay at the incidents, accusing President Tinubu of creating a situation where such tragedies have become commonplace. She criticized the administration for turning Nigeria into a “massive grave.”
Ezekwesili and Obi: Economic Crisis at the Heart of the Tragedies
Former Education Minister Obiageli Ezekwesili also highlighted the economic distress in Nigeria, stating that these stampedes reflect the devastating food poverty affecting many Nigerians. Similarly, former presidential candidate Peter Obi lamented the country’s inability to feed its people despite its abundant resources, attributing the tragedy to poor leadership.
Osita Okechukwu, an APC founding member, urged the nation to focus on empathy rather than blame. He emphasized the need for urgent reforms to address the country’s economic challenges and put the needs of the people at the center of policy decisions.
Police Warning on Charitable Events in the FCT
The FCT Police Command issued a warning, stating that any organization or individual planning charitable events in the capital must notify the police in advance to ensure adequate security measures. Failure to do so could lead to liability for any resulting harm or loss of life.
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