The Association of Local Governments of Nigeria has lamented that several local governments do not pay the national minimum wage agreed upon by the government and organised labour.
The body warned defaulting LGs to desist from such acts and pay LG workers the agreed national wage.
ALGON President, Alhaji Maifata Mu’azu, claimed that, to date, some local governments still find it difficult to pay the former minimum wage of N18,000, which had since 2019 been changed to N30,000 by the Federal Government.
He warned that, once the new minimum wage regime begins after government approval, there should be no excuse by the LGs not to pay their workers the agreed wage.
This comes at a time when the country is working on a new minimum wage for its workers.
Organised labour has insisted that the living wage should be N615,000 per month. The Federal Government is yet to agree to this, as the National Minimum Wage sub-committees are still consulting.
President Bola Tinubu had on Workers’ Day also promised, through the Minister of State, Labour, and Employment, Nkiruka Onyejeocha, a fair wage for the workers and added that the new minimum wage would take effect from May 1, 2024, irrespective of when the committee completes its job.
In an interview with Sunday PUNCH, Mua’zu said, “If a new minimum wage is being declared, the third tier of government, which is the local government councils across the country will find it very difficult to pay.
“This is because, up to this time, many of these LGs are not paying the last minimum wage. That’s the one of N18,000. It is so because the allocation to the local government and the percentage from the federation account cannot sustain that.”
Speaking further, he said the Federal Government received over 50 per cent, followed by states and the LG is left with 20 per cent.
He added, “We are clamouring for an increase. We want them to take the local governments to about 22.5 per cent. If that is being reviewed to favour local governments, we are not saying it will be the same with the states or federal but just jack it up to about 22.5 per cent.
“If that is the situation, we can say the local governments across the country would be able to pay the minimum wage or the living wage as it is being called.
“Anything short of that is going to be very difficult. This is because most of the local governments – I can say – about 90 per cent of what they obtain from the federation account goes into paying salaries and pensions.”
‘Sharing formula faulty’
The ALGON president insisted that the sharing formula is faulty.
He said, “I can mention a few states that their state governors don’t even interfere. Still, it will be very difficult for them to pay their workers the agreed minimum wage. If a new minimum wage is being reviewed upward, there is no choice in the matter. It is a matter of fact. What I want us to address is the sharing formula.
“It is long overdue for a review. It is supposed to be reviewed after every five years or thereabouts. It has not been done. The revenue mobilisation has done its part and submitted the report or something for review to the presidency but it has not been attended to since the last regime.”
ALGON should raise the alarm – NULGE
The National President of the Nigeria Union of Local Government Employees, Olatunji Ambali, has faulted ALGON’s stance on the sharing formula, adding that the union could have raised the alarm long ago.
Ambali stated that whether or not the sharing formula was adjusted, ALGON would have no alternative but to comply with the new minimum wage.
He said, “This is because we call it a National Minimum Wage, not a decentralised wage structure.
“I believe ALGON, too, wants their workers to survive and they want their workers to be the best, especially, when local government is the most strategic. They are confronted with poverty, insecurity, and joblessness, and it is the workers who are the engine room that drives development.
“ALGON has not raised the alarm because it is a member of the Joint Account Allocation Committee, and as a statutory member of the committee, whatever happens, you have the right to debate at that level to discuss and agree. To NULGE, that is not a major concern, because we know once the negotiation has been concluded, it will also be easy for ALGON because they are involved in the negotiation.
“There is no benevolent employer of labour, everything we have got now is through negotiation and dialogue. We are conscious that even though they are raking in billions of dollars are not ready to pay their workers a living wage. So until labour is proactive to engage them and to put the facts and figures on the table and we can look at it critically then we will know. It is when we reach the bridge we will cross it.”
LG autonomy, only solution – TUC
Also speaking on the issue, the Deputy President of the Trade Union Congress, Dr Tommy Etim, stated that it was unfortunate that the country has a lot of policy somersault.
This is as he noted that the only solution to the issue of local government over-dependence on state governors would be solved by LG autonomy.
This is as he noted that the only solution to the issue of local government over-dependence on state governors would be solved by LG autonomy.
“Because, where you have a situation where allocation that’s supposed to go directly to the local government is being manipulated by what they call the Joint Account Charter Committee, that alone is frustrating. Don’t forget, there was a system in place where it was difficult for the local government to pay salaries.”
Wage increase by govs, not an excuse – Labour
Organised Labour has said the recent wage increment announced by some state governments is not a platform for them not to implement the new minimum wage when the act is implemented into law.
The National Vice-President of the Trade Union Congress, Tommy Etim, made this known in an interview with our correspondent in Abuja.
Certain state governors have started to announce salary increments for workers.
For instance, the Ebonyi state government announced a salary increment of N10,000 for workers across boards in the state.
The Edo state governor, Godwin Obaseki also announced a new minimum wage of N70,000 in the state.
The Rivers state governor, Siminalayi Fubara, also announced that the state would implement the recent percentage increase announced by the Federal Government for civil servants in the state.
However, the national minimum wage committee popularly referred to as the Tripartite Committee on minimum wage set up by the Federal Government is yet to announce a new minimum wage.
The committee which was set up by the President Bola Tinubu-led Federal Government was expected to work towards the announcement of a new minimum wage on May 1, 2024.
Labour, comprising of the Nigeria Labour Congress and Trade Union Congress, has proposed a N615,000 minimum wage for workers.
Joe Ajaero, the NLC president in a statement said the figure was a product of a painstaking to protect workers in the country.
“It was essentially an outcome of independent research conducted by the NLC and TUC on the cost of meeting the primary needs of an average family around the country.
“Our research was based on a family with both parents alive and four children without the burden of having other dependents with them.
“A questionnaire was designed and sent to all the State Councils of NLC and TUC from where these questionnaires were sent to our members in all the Local government areas in the country to gather the monthly cost of living for the average family as described above,” Ajaero explained.
