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Why States Are Hesitant On Minimum Wage Increase To N62,000

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Why States Are Hesitant On Minimum Wage Increase To N62,000

Writing by Sediq Mutari....KINDLY READ THE FULL STORY HERE▶

As the nation awaits President Bola Tinubu’s executive bill on a new minimum wage to be presented to the National Assembly, many states may require a bailout or may need to retrench workers to afford the proposed N62,000 minimum wage by the Federal Government and Organised Private Sector (OPS).

Although states have been receiving increased allocations since the removal of the fuel subsidy in May 2023, sources indicate that the increment is insufficient to sustain the payment of N62,000 minimum wage.

OPS Clarification

The OPS clarified that there was no agreement in the recent Tripartite Committee meeting on the new national minimum wage but rather an alignment of interests.

Governor Nasir Idris’s Position

Governor Nasir Idris of Kebbi State distanced himself from governors suggesting an inability to pay the proposed N62,000 minimum wage. Contrarily, Senator Ahmed Wadada of Nasarawa West urged President Tinubu to approve a minimum wage of at least N150,000.

States’ Financial Constraints

Currently, over 20 states are not offering any wage awards to their workers despite President Tinubu’s plea to emulate the federal government, which is paying N35,000 in addition to the N30,000 minimum wage. The primary reason for this reluctance is a lack of funds.

Data on federal allocations before and after the subsidy removal in May 2023 shows that states received a 20-25% increment in allocations, which some governors argue is inadequate for the proposed wage increase.

Allocation Disparities

From January to June 2023, the 36 states received N2.188 trillion before subsidy removal and N2.305 trillion from July to December 2023, post-subsidy removal, marking just a five per cent increment. For example, Lagos State saw a 28% increase in allocation, while states like Akwa Ibom and Delta received less due to a reduction in the 13% derivation post-subsidy removal.

Challenges in Paying N62,000

A governor emphasized that the new minimum wage is a national issue affecting states, local governments, and private sector employers. He pointed out the need to consider affordability, potential economic impacts, and the possibility of worker layoffs if an unsustainable wage is imposed.

Kebbi State’s Commitment

Governor Idris affirmed his commitment to paying the agreed minimum wage and emphasized his role as a member of the negotiating committee, advocating for workers’ welfare.

OPS Perspective

The OPS noted that the meeting resulted in a recommendation to President Tinubu rather than an agreement. They proposed that the new minimum wage should cover employers with 200 employees and above, rather than the current threshold of 25 employees, to protect SMEs, which are critical to the economy.

Senator Wadada’s Call for Higher Wage

Senator Wadada called for a minimum wage of N150,000, citing the current economic realities. He expressed willingness among lawmakers to reduce their remunerations to support decent salaries for Nigerian workers.

Conclusion

The debate on the new minimum wage highlights significant economic challenges and the need for careful consideration of state finances, economic impacts, and realistic wage levels to support workers without compromising state and local government functions.

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Tinubu Fires Back! President Orders ICPC To Hunt Down Architects Of PFIPC Deception.

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U.S.-based lobbyist Von Batten-Montague-York is urging President Donald Trump and the U.S. Congress to investigate potential fraud involving the Presidential Foreign Intervention Promotion Council (PFIPC) and senior officials in Nigeria’s Tinubu administration. The lobbyist alleges a conspiracy to divert U.S.-linked funding, specifically targeting Chief of Staff Femi Gbajabiamila, who has consistently denied any link to the council or its director, Adeniyi Adeyemi. This push for scrutiny is bolstered by the suspicious ₦1.3 billion allocation the “fictitious” agency received in the 2026 national budget. Amid these claims, attention has also resurfaced regarding Gbajabiamila’s past 2007 suspension by the Georgia Supreme Court for professional misconduct regarding client funds. While the Nigerian Presidency labels the PFIPC a fraud and is prosecuting Adeyemi for forgery, the mystery remains as to how the entity secured legislative and executive approval for its budget allocation.....KINDLY READ THE FULL STORY HERE▶

The controversy surrounding the alleged “ghost agency,” the PFIPC, has reached U.S. soil as a lobbyist pushes for American authorities to probe high-ranking Nigerian officials. Von Batten-Montague-York claims that senior figures in the Tinubu government may have used the disputed council to illegally secure or divert international funding. Despite Femi Gbajabiamila’s strong denials of involvement, his past disciplinary record in the U.S. has become a focal point of the lobbyist’s demands. Meanwhile, Adeniyi Adeyemi—currently facing criminal charges for forgery and impersonation—has further complicated the narrative by questioning how the council received a ₦1.3 billion budget allocation while he was in police detention, suggesting that others within the government must have facilitated the agency’s inclusion in the 2026 Appropriation Act.

Option 3: Concise Summary U.S. lobbyist Von Batten-Montague-York has petitioned the Trump administration and Congress to investigate Nigerian officials over the PFIPC scandal, citing allegations of a conspiracy to defraud the United States. The report highlights the suspicious ₦1.3 billion budget allocation for the agency, which the Nigerian Presidency officially disowns as a fraudulent creation of Adeniyi Adeyemi. Adeyemi, however, denies involvement in the budget process and challenges the government to explain how the “fictitious” entity bypassed legislative and executive scrutiny. The situation has also invited renewed scrutiny of Chief of Staff Femi Gbajabiamila’s history, referencing his 2007 legal practice suspension in Georgia as part of the broader controversy.

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Show Us The Proof! Retired Sergeant Challenges Defence Minister In Shocking Payout Claims.

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Military veterans have expressed strong dissatisfaction with the Federal Government’s decision to increase the minimum monthly salary for soldiers to ₦100,000, calling the amount insufficient given the current economic climate. In interviews with Punch, veterans argued that significantly higher pay is essential to boost troop morale and performance. This follows an announcement by Minister of Defence Christopher Musa, who stated the pay had been raised from ₦49,000 to ₦100,000. However, some retirees, such as Abdul Isiak, noted that this increase fails to cover basic family needs. Furthermore, retired Sergeant Zaki Williams openly questioned the accuracy of the minister’s statement, labeling the ₦100,000 figure as both potentially untrue and inadequate for the risks soldiers endure.....KINDLY READ THE FULL STORY HERE▶

A wave of criticism has emerged from retired military personnel regarding the government’s reported salary hike for soldiers. While Minister of Defence Christopher Musa disclosed an increase to ₦100,000, veterans argue that the sum is largely inadequate to address Nigeria’s rising cost of living. Retired Sergeant Zaki Williams went as far as to doubt the claim entirely, describing the ₦100,000 figure as a “lie” and an insulting offer for those serving in difficult conditions. Veterans emphasize that if the government hopes to see improved performance and dedication from troops, it must prioritize genuine welfare improvements rather than what they perceive as token increases.

Option 3: Concise Summary Veterans are pushing back against the government’s announcement of a new ₦100,000 minimum monthly salary for soldiers. Minister of Defence Christopher Musa recently confirmed the adjustment from ₦49,000, but retired personnel remain unimpressed. Many argue that the new amount is insufficient for today’s economic realities and that better remuneration is critical for maintaining high morale. Expressing frustration, retired Sergeant Zaki Williams questioned the reality of the payout, dismissing the ₦100,000 figure as unrealistic and far below what is deserved for the challenges and sacrifices faced by military personnel.

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CRISIS IN THE CAMP: Ex-Obi Coordinator Demands Truth Behind Controversial PFIPC Scandal!.

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Ifeanyi Thaddeus Ezeagu, a former coordinator for Peter Obi’s 2023 presidential campaign, has demanded a transparent and independent probe into the controversy surrounding the alleged Presidential Foreign Intervention Promotion Council (PFIPC). Ezeagu noted that this scandal reveals significant vulnerabilities in Nigeria’s accountability systems and public administration.....KINDLY READ THE FULL STORY HERE▶

  • Need for Public Accountability: He argued that Nigerians are owed an explanation regarding how a potentially non-existent agency secured official recognition, office space, and budgetary allocations.

  • Support for Investigation: While Ezeagu welcomed President Tinubu’s 30-day investigative directive to the ICPC, he stressed that the inquiry must be impartial and free from political interference.

  • Scope of the Probe: He stated the investigation should uncover institutional failures and potential collaborators, rather than just focusing on individuals directly linked to the issue.

  • Institutional Reforms: Ezeagu advocated for stronger internal controls, enhanced verification procedures across government departments, and the digitization of institutional records to prevent similar fraud in the future.

  • Call for Transparency: He urged the ICPC and the National Assembly to collaborate on a credible investigation, emphasizing that full disclosure of findings is necessary to restore public confidence in governance.

Ezeagu concluded that this controversy should serve as a catalyst for the government to reinforce transparency and accountability, asserting that public trust is essential for rebuilding governance and attracting investment.

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