The governors of the 36 states will today meet to consider a report that listed 16 states as “bankrupt”, nine “unhealthy”, six “critical” and five “distressed” as a result of the implementation of the minimum wage which commenced August 2011.

Also, the governors may move for an amendment of the constitution to remove labour and all labour-related matters from the Exclusive Federal Legislative list to the Concurrent List, meaning states will be able to discuss their labour-related issues.

The implication is the decentralisation of the Nigeria Labour Congress (NLC) and other unions.
The report by the Nigeria Governors Forum (NGF) Secretariat obtained by THISDAY listed the following states as being in distressed situation following the implementation of the wage: Katsina with a total yearly revenue of N33.2 billion and a total year wage bill of N21.71 billion or 65.4 per cent of the state total revenue; Niger with a total yearly revenue base of N32.3 billion and a wage bill of N23.4 billion or 72.4 per cent; and Sokoto with a total yearly revenue of N29.2 billion and a yearly salary bill of N23.4 billion or a 80 per cent of the total revenue.

Also listed is Zamfara with a total yearly revenue base of N27.5 billion to a yearly wage bill of N19.24 billion or 70 per cent.

All these, the report said, were based on a 30-per-cent increase in personnel cost.

Other states listed to be in critical positions include Adamawa, Benue, Edo, Ekiti, Osun and Plateau.
Specifically, the report stated that Adamawa with a yearly revenue base of N29.2 billion will expend N15.21 billion on salaries and wages, which represent a 52.1 per cent of personnel cost of the total revenue, while Benue with a N35.3 billion yearly revenue, which yearly salaries will gulp N19.37 billion or 54.9 per cent of personnel cost.

Edo with a total yearly revenue base of N40.9 billion will finance a wage bill of N22.23 billion or a 54.4 per cent of personnel cost.

Ekiti is among the states listed within the range of states in critical situation. The state has a yearly revenue base of N23.6 billion, but has a yearly wage bill of N14.82 billion or a 62.8 per cent of the personnel cost.

Plateau has N28.1 billion as total revenue with N15.99 billion as personnel cost or a 56.9 per cent.
According to the source, states described as unhealthy are[b] Cross River, Ebonyi, Enugu, Kaduna, Kogi, Ogun, Ondo, Taraba and Yobe.[/b]

The following states were described as healthy and therefore can pay the 30-per-cent incremental wage bill. They are: Abia, Akwa Ibom, Anambra, Bauchi, Bayelsa, Delta, Gombe, Imo, Jigawa, Kebbi, Kwara, Lagos, Nasarawa, Oyo and Rivers.

The report, which stated that Rivers has a total yearly revenue base of N184.5 billion, has a yearly wage bill of N47.45 billion or 25.7 per cent of personnel cost.

In the same vein, Akwa Ibom has a yearly revenue base of N144.4 billion and a personnel cost of N23.27 billion or 16.1 per cent.

Lagos State has a yearly revenue base of N182.8 billion and a wage bill of N42.51 billion or a 23.3 per cent of the personnel cost.

According to the report, the implementation of the Minimum Wage Act by these states would have a negative impact on their ability to create jobs and at great opportunity cost on other government projects.
Apart from this, the report said the implementation of the Act would negatively affect the basis of true federalism in Nigeria.

It was as a result of this that one of the governors told THISDAY that the meeting would be discussing the implication of allowing labour matters to remain on the exclusive federal list.
“It is our belief that we shall be asking that labour and all labour-related matters should be moved to the concurrent list of the constitution, so that states would be able to negotiate with labour leaders in their respective states,” he said.



http://www.thisdaylive.com/articles/new-wage-16-states-risk-bankruptcy-says-report/100182/

Ofcourse the five top popular states falls within the healthy states category

Nigeria can't afford the increased minimum wage for the masses but can afford increasing the wages for the president, governors and lawmakers.

Blackteeth:

Nigeria can't afford the increased minimum wage for the masses but can afford increasing the wages for the president, governors and lawmakers.

Whilst there is a valid point about the financial cost of our political class, you can't deny the reality that Nigeria cannot afford the ever increasing cost of the public sector. You can't have states, as this article notes, like Zamfara and Niger spending 70% and 72% of their revenue on civil servants who, even if you count their dependants, are not more than 5% of the population. Those states need investment in schools, hospitals, roads, e.t.c, which they cannot make as almost all their money is spent on a tiny segment of the population.

some of the ups and downs.

So of 6 SW states, only 1 of the true (Oyo) states are healthy, and another partial (Lagos) SW state also healthy
1.5/6 = 25% healthiness

In contrast, 3 of 5 SE states are health = 60% healthiness


I thought they claimed Osun was not poor? I dey laff oh!!!!

First let them stop the waste full spending of their state resources. stop making return to their Godfathers and boys. stop their hands from dipping into the state coffer to help themselves to some. Reduce their salary and allowance and block every black hole in revenue generation and remittance to the state account. After doing all this are still found themselves in the same spot, they can now come talk.

Chris-OD:
So of 6 SW states, only 1 of the true (Oyo) states are healthy, and another partial (Lagos) SW state also healthy
1.5/6 = 25% healthiness

In contrast, 3 of 5 SE states are health = 60% healthiness


I thought they claimed Osun was not poor? I dey laff oh!!!!

You think you are intelligent but you aren't .another SE VS SW comment that has nothing to do with the original post.
While others are downplaying the indices in their area , you are there chest beating.
When those downplayer attract additional funding from the center,donor agencies ,world bank etc, you will be there shouting marginalization.
You see who is healthy now.mumu

Thats why the senate should try and facilitate the passage of the bill that seeks to give state the power to decide on their wage plan.

Like seriously, Nigeria is up for sale....jeez.....with all these problems people are still shouting for the creation of more states? Some states need to be merged,the Gov. Put on minimum wage and the house work on part time. Someone remind me what the civil servants do again please.

When we are ready to learn, we will start making our kids acquire some very relative skills that cld make them stand alone and use their brains while still in school.

OR:

U can all waste ur cash sending them to school and only school alone while mine acquires a skill along with schooling!

Until u embrace industrialisation along with education, u will keep suffering!