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By: Ade Adeleke
The Ondo state Governor, Oluwarotimi Akeredolu on Sunday night expressed apprehension that some of the 36states of the federation may go bankrupt with the implementation of the new #30,000 minimum wage.
The governor however said if the revenue sharing formula, which is tilted towards Federal Government, is reviewed in favour of the state and local governments, the new minimum wage would be implementable and states will be saved financially.
Akeredolu noted that with the increase in the minimum wage from N18,000 to N30,000 and execution of capital projects, some states would face financial crisis and collapse financially.
Speaking on a live programme on the state-owned OSRC, tagged “An Evening with Mr. Governor”, he also affirmed that Ondo state government would implement the new wage.
On the review of the revenue sharing formula, Akeredolu said the finances of majority of the states are low and may go bankrupt if they are to pay the new minimum wage for workers.
His words: “On this revenue sharing formula, something has to be done about it. We cannot continue the way we are. If we continue that way, a number of states will probably go bankrupt.
“People that have not been paying salary for months, you ask them to pay N30,000. For me, there are lots of states that cannot afford it. So, many would resort to borrowing.”
Akeredolu said the implementation of the National Finance Intelligent Unit (NFIU) would lead to local governments owing teachers’ salaries.
Pointedly he said the governors, under Nigerian Governors’ Forum (NGF), have gone to court to challenge the decision of the Federal Government on the local government funds.
He said the new minimum wage was already creating a lot of fears in the mind of many state governments.
The governor said the states have been experiencing dwindling allocations from the Federal Government in the last four months which, he said, has worsen the financial situation of the states.