Governor Ayodele Fayose’s administration in Ekiti State has called for a review of the current Revenue Allocation Formula in favour of the lower levels of government to enable them cope with the eventuality of increase in minimum wage.
Speaking in Ibadan at the presentation of a memorandum on the proposed new minimum wage to the Tripartite committee on national minimum wage, the State governor, Chief Ayodele Fayose stated that the clamour for increase in minimum wage cannot be ignored, especially as the increase in prices of goods and services have worsened the standard of living of the average Nigerian worker.
Fayose who was represented by the State Head of Service, Dr. Olugbenga Faseluka noted that the current revenue allocation formula has become inequitable to support the needs of lower tiers of government.
“As at the time the present minimum wage came into effect, for instance, the price of Premium Motor Spirit was N65 per litre which was later increased to N145 per litre in 2016. The increase has aggravated or triggered increase in prices of other goods and services thereby compounding the already challenged standard of living of the average Nigerian worker”, he said.
While noting that the current minimum wage of N18,000 has become unrealistic and inadequate to support basic standards of living, the governor affirmed the need to increase the present minimum wage but same should be premised on the ability of employers to pay.
According to the memorandum, Ekiti State government proposed a new formula that would see the federal government getting 30%, State governments 40%, local government councils 25% and 5% reserved for others.
Fayose who hailed the request for memorandum from all states urged the committee to approve a new wage based on the review of the current revenue allocation formula in favour of lower levels of government.
Packaged by Omotoyosi Jesuleye
