As the controversy over the new national minimum wage continues unabated, the Association of Local Government of Nigeria (ALGON) on Thursday expressed its concerns on the proposed N62,000 minimum wage by the Federal Government, saying that approval of the proposal could worsen the financial challenges of the 774 local government councils nationwide.
The ALGON National President, Aminu Muazu-Maifata, who expressed the position of the association when he featured on Channels Television programme, maintained it would be difficult for the local governments’ administrations to pay the N62,000 proposed minimum wage.
Muazu-Maifata, who is the chairman of Lafia Local Government, Nasarawa State, hinged his position on the fact some of the 774 LGAs in the country were still struggling to pay the old N30,000 minimum wage approved.
The ALGON President said: “With the present allocation from FAAC, no local government council anywhere in Nigeria can be able to pay N62,000.
“Presently, 90% of our inflow from the Federation Account goes into salaries and pensions. Without an upward review of the percentage of allocation to local government councils, it will be extremely difficult or even impossible for them to pay N62,000 minimum wage.”
“The 774 local government councils received slightly above 18 per cent of the total FAAC of the federation, while the federal government received above 52 percent.
“Some councils could not even afford the N30,000 and are still working on the N18,000. Whatever is coming from FAAC presently, 90 percent goes into salaries and pensions.
“This tells us that without adjustment and an upward review of the percentage of the allocation coming to local councils, it will be extremely difficult or impossible for local government councils to pay N62,000”, he added.
The ALGON chief said if the proposed minimum wage law became approved, local government councils “will have to run to our principals, the governors, and the Federal Government to augment whatever will be accrued to local government councils from the Federation Account.”
