There is need for the Federal Government to reorder revenue allocation in order to make states more responsible and responsive to the yearnings of the people, Ekiti State Governor, Dr Kayode Fayemi, has stressed.
Fayemi who expressed his displeasure on the present revenue sharing formula where the larger chunk is allocated to the Federal Government, leaving the federating states and local governments with low allocation, said approval of the new minimum wage by the Federal Government required that government made moves to increase states’ funding to enable them effectively take up the responsibility.
The Governor, who spoke on a Television/Radio network programme in Ado-Ekiti on Monday evening, however, assured workers that his colleagues in the Nigeria Governors’ Forum were committed to the payment of the new minimum wage as soon as the Federal Government released the template.
He reiterated the need for government at all levels to diversify the economy and think of ways to generate more revenue to enable them effectively address the socio-economic challenges facing them.
“We have a bigger issue, which does not necessarily apply to workers, it’s about re-ordering the revenue allocation formula in the country, because you cannot continue to impose on states a tyranny of unfunded mandate. If you want us to take responsibility for certain things then it’s only fair that we are funded to take responsibility for them. So, right now, 52 per cent of the Nigerian resources goes to the Federal Government; 26 per cent to state governments; and 20 per cent to local governments. We feel that this ought to be revisited and the allocation formula needs to be reviewed.
“The ability of the Federal Government and the federation account to also respond to this would depend largely on the capacity of the Nigerian state to generate more resources; so everybody has a role to play in baking the pie if we want the pie to provide the resources that would be available to all Nigerians particularly workers,” Governor Fayemi said.
On the issue of minimum wage, Fayemi said “Governors were part of the negotiations, there is no uncertainty around government’s commitment. It’s been signed into law, so, governors definitely would honour the law as it is. The issue that needs to be addressed fundamentally by workers and employers is one clear issue, is a minimum wage review also a general wage review?
“What do I mean by that? Minimum wage apply to anyone earning anything less than N30,000 now. It should not apply to people who are earning above that. However, because the increase is going to have an implication on those who already earn above N30,000, there necessarily ought to be some adjustment to make provision for that shift, that is where the sticky point is. From what I gathered, Federal Government that is supposed to provide the template for the implementation of the minimum wage review has offered a general increase of, I think, 5 per cent to workers that may not fall within the minimum wage category but who might be affected by the increase that the junior workers would benefit from.
“I have reassured the union leaders in Ekiti that once we get the template, difficult as it might be for us, we are committed to honouring the minimum wage review that we have signed up to at the Governors’ Forum and I can assure you that my colleagues in the governors’ forum are also committed to doing this.”
