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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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Police Arrest NSCDC Officer With Pistol, 17 Bullets At Abuja Kubwa Market.

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An officer of the Nigeria Security and Civil Defence Corps (NSCDC) has been arrested for allegedly firing gunshots into the air during a confrontation with traders at Kubwa Market in Abuja.....KINDLY READ THE FULL STORY HERE▶

The officer, identified as Onoja Samuel, reportedly arrived at the market armed with a pistol following allegations that some traders had assaulted his wife.

The Federal Capital Territory (FCT) Commissioner of Police, Ahmed Mohammed Sanusi, disclosed the incident while addressing journalists at the command on Wednesday, Naija News reports.

Sanusi said the police received a distress call from Kubwa Market, located in the Bwari Area Council, reporting that a man was shooting into the air.

Following the report, officers attached to the Kubwa Police Division were deployed to the scene, where they arrested the suspect.

According to the police commissioner, preliminary investigations revealed that Samuel holds the rank of Deputy Superintendent of Corps (DSC) in the NSCDC.

He explained that the officer allegedly fired several shots during an argument with the traders.

“During the ensuing argument with the traders, Onoja Samuel, who is a DSC with the NSCDC, fired several shots into the air,” Sanusi said.

The police recovered a CZ pistol and 17 rounds of live 9mm ammunition from the suspect.

Sanusi added that Samuel remained in police custody and would be charged in court upon the conclusion of investigations.

The commissioner also urged personnel of other security agencies operating in the FCT to exercise restraint and notify the police divisions responsible for their areas before conducting authorised operations.

He stressed that effective coordination among security agencies was essential to preventing confrontations and maintaining peace across the territory.

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‘We Don’t Want Another Mohbad Case’ – Laolu Gbenjo Speaks On Toluwanisings.

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Nigerian gospel singer Laolu Gbenjo has cautioned the public against spreading unverified information about the circumstances surrounding the death of his colleague, Bayonile Bolaji, popularly known as Toluwanisings.....KINDLY READ THE FULL STORY HERE▶

Gbenjo’s warning comes amid growing controversy surrounding the late singer’s death and burial arrangements, with reports of disagreements among members of his family.

The gospel singer spoke on Tuesday during a night of tributes held in honour of Toluwanisings in Ibadan, Oyo State. He warned against allowing the situation to degenerate into a controversy similar to the one that followed the death of Nigerian singer Mohbad.

Describing the deceased as a devoted Christian and a genuine servant of God, Gbenjo said Toluwanisings was passionate about his faith and had a good relationship with people.

He urged the public to stop fuelling unnecessary controversy over the late singer’s death, particularly through social media platforms such as TikTok and Instagram.

“You can never see Toluwani in the midst of jobless people. He had a good heart. He was a friend to everybody. He served the Lord with all his heart. Don’t turn Toluwani into Mohbad. That madness on TikTok and Instagram must stop. If you are jobless, go and look for a job,” Gbenjo said.

Meanwhile, comedians Ayobami Ajewole, popularly known as Woli Agba, and Olamide Oladimeji, also known as Dele Omo Woli, have threatened legal action against individuals allegedly linking them to Toluwanisings’ death.

Woli Agba disclosed this in a public notice shared on his Instagram page on Sunday.

In the notice issued by their solicitors, Gemgold, the comedians warned members of the public against publishing or circulating allegations they described as false and defamatory against them.

The legal notice maintained that the allegations were baseless and intended to damage the reputations of the two entertainers.

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El-Rufai’s ₦1bn Legal Battle Takes New Turn As Court Fixes Judgment Date.

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The Federal High Court in Abuja has fixed December 2, 2026, for judgment in the ₦1 billion fundamental rights suit filed by former Kaduna State Governor, Nasir El-Rufai, against the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and other respondents.....KINDLY READ THE FULL STORY HERE▶

Justice Joyce Abdulmalik set the date after lawyers representing the parties adopted their respective court processes.

However, El-Rufai’s lawyer was absent when the case was initially called. The judge subsequently deemed the former governor’s filed processes adopted.

Counsel to the ICPC, Abdul Mohammed (SAN), adopted the commission’s court processes and urged the judge to dismiss the suit in its entirety.

Similarly, the lawyer representing the Inspector-General of Police, ACP Ezekiel Rimamsomte, and Maimuna Lami-Shiru, Director of Civil Litigation and Public Law, who appeared on behalf of the Attorney-General of the Federation (AGF), adopted their respective processes and asked the court to dismiss the case.

During the proceedings, El-Rufai’s lawyer, Ubong Akpan, arrived in court and apologised for his lateness.

When Akpan sought the court’s permission to adopt his client’s processes, Justice Abdulmalik informed him that the documents had already been deemed adopted.

The judge subsequently adjourned the matter until December 2, 2026, when judgment is expected to be delivered.

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