Minimum Wage: Adeleke advocates review of federation account sharing formula
By Jeleel Olawale
Governor Ademola Adeleke of Osun State has called for the review of the Federation Account Revenue sharing formula as well as the moving of solid minerals from exclusive to concurrent legislative list.
The Governor made the advocacy in Lagos on Thursday while attending the South West zonal public hearing on the new national minimum wage. Governor Adeleke represents the South West at the National Tripartite Minimum wage committee.
Addressing labour leaders and other delegates at the public hearing, the Osun State Governor said there is a consensus on the need to increase the minimum wage but noted that a review of the revenue sharing formula and amendment of legislative list are necessary to boost the capacity of the states to pay the new minimum wage.
“In all our meetings and various deliberations, one thing that the committee has been able to establish is that the workers in Nigeria are due for an improved welfare package. There is a consensus for an upward review of the National Minimum Wage because the existing one has become unrealistic.”
It has to be reiterated that the majority of the governments at the sub”nationals can hardly sustain an improved wages and salaries for their workers without a significant adjustment in some of the narratives in the national economy.
“In tandem with the public outcry for the review of the sharing formula for the federation account, the time has come for the federal government to revisit the matter. There is an urgent need for the review of existing sharing formulas in favor of states and local governments.
“I call on the National Assembly through the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) to urgently take decisive action to look at the ratio objectively and realistically. Additionally, the nation must remove solid minerals from the exclusive legislative list.”
“Every state in Nigeria has been blessed with one form of natural resources or the other. There is a strong appeal to move solid minerals from exclusive to concurrent legislative list,” the Governor submitted
On the new minimum wage, the Governor posited that “our position from Osun State is that workers deserve improved wages and salaries. The Osun state government is in support of a new and realistic minimum wage for all workers within the limit of the available resources in a very sustainable manner.”
“While it would be desirable to see that a uniform minimum wage is agreed on a national basis, it would amount to self deceit to assume that states have equal ability to pay.”
He however posited that individual states would have to negotiate with their workers and agree to a realistic and sustainable minimum wage in line with the available resources.
Meanwhile, frontline labour leader and the Director General of Michael Imodu Labour Institute, Comrade Mike Aremu has applauded the pro-labour and pro-worker policies of Governor Ademola Adeleke, affirming that the Osun Governor deserves a labour fellowship award.
Speaking at the public hearing, Aremu said both the Lagos state Governor , Babajide Sanwo-Olu and Governor Adeleke are penciled down for the labour fellowship of Michael Imoudu institute for being labour friendly.
“Governor Adeleke, you are doing very well in Osun . You are paying salaries regularly. You are clearing the pension baggage. You deserve such awards,” Aremu posited.
He equally called the attention of labour leaders on the need to be mindful of the principle of affordability in the struggle for the new minimum wage.
“As much as the new minimum wage is strongly needed now, I must also canvas the question of affordability and sustainability.
“We may ask for one million naira as minimum wage but we have to think of capacity to pay. We have to think of the survival of workers as much as the interest and survival of businesses and the establishment. We must have a balancing act,” Aremu noted.
The Minister of Finance and the Coordinating Minister of the Economy, Mr Wale Edun was the Chairman of the zonal public hearing.
