₦airaland Forum

theoldpretender:
NLC is not going to get their 30000 minnimum wage....because the government cannot afford it.

Oil yesterday was $62 per barrel. Yes, it is $2 dollars above the minimum set for budget...but it is still far less than our 2017 breakeven price of $140 per barrel.

The breakeven price of oil is the price we need oil to be to have enough revenue to fund a budget sans borrowing, sans deficit.

Since Bubu took over, oil has never been above $75 on average. So, essentially, we are earning at least $70 less than we need per barrel of oil in revenue.

And NLC now wants a salary increase.

The only way NLC gets an increase is either

1.Government cuts things like fuel subsidy, subsidy for educaiton, ...meaning that fees go up,and petrol retails for N250 per liter and above.

2.Government takes a loan to keep essential services running...while it redierects money to pay the wage from other ministries.

3.Yes, they need to cut their allowances. Yes, N1 trillion is a lot of money to spend on our National Assembly...and we need to cut it. But that means that things like constituency projects, etc as well as jobs (senators and reps employ people too) would have to be cut...and I doubt the money would be enough.

Yes, Buhari should have diversified. The problem is,

1.Agriculture has not earned enough cash for us since the early 1980's. To rebuild our capacity in agriculture is going to take time...plus we have very very stiff competition (The South East used to be world leaders in palm oil. Now ...it is Malaysia and Indonesia. Can the SE rebuild its capacity to what it was in the 1960's).

2.Mining too...needs a lot of regulation. There is so much illegality there that cleaning up the sector is going to take years.

The thing is, e no go easy to pay this minimum wage. I hear people shouting Governemt is corrupt...and yes, they are right. The current government is not exempt from corruption. But even if we removed corruption....giving everyone an increase is not going to help.

Add the fact that the increase is for government workers only. Meaning..the private sector is going to come under pressure to match the public sector...increasing costs for a sector that is already finding it hard in Nigeria.Meaning...long term..investments get pulled out...jobs get lost.

So,let's face facts Nigeria...this country is not rich...and we need to make the hard choices to adjust to that fact. If NLC expects govt to fund a salary raise with oil prices that are too low to fund it...then they better get ready for more loans, or cuts elsewhere.

Either Nigeria takes the hard ro0ad to industrial development, or we keep on with our silly sharing money economics that we have been doing since 1960. ...which is why we are still underdeveloped.

I don talk my own.

Yankee101:
Parking in front of a bank is not allowed for security reasons

gm64888:
Guys this elected politician thieft they are taking ur for granted.We elected them into offices but they are turnings us fools.Guys please howmuch is #30,000 they are saying they cant pay,even their dogs at home he eat more than #30,000 a month talkless of them who their 1day allowance is even above #30,000 not even talk about their monthly salary..GUYS THIS IS TIME FOR CHANGE I HAVE MY PVC VOTE WISELY..

somehow:
Is Federal government the one to decide what state will pay?

Blacksodje:
Is less than $100 to much to be paid to as Nigerian worker at the end of the month?

Why drag #3000 with NLC as if say una dey price tomatoes for mile12 market.

theoldpretender:
NLC is not going to get their 30000 minnimum wage....because the government cannot afford it.

Oil yesterday was $62 per barrel. Yes, it is $2 dollars above the minimum set for budget...but it is still far less than our 2017 breakeven price of $140 per barrel.

The breakeven price of oil is the price we need oil to be to have enough revenue to fund a budget sans borrowing, sans deficit.

Since Bubu took over, oil has never been above $75 on average. So, essentially, we are earning at least $70 less than we need per barrel of oil in revenue.

And NLC now wants a salary increase.

The only way NLC gets an increase is either

1.Government cuts things like fuel subsidy, subsidy for educaiton, ...meaning that fees go up,and petrol retails for N250 per liter and above.

2.Government takes a loan to keep essential services running...while it redierects money to pay the wage from other ministries.

3.Yes, they need to cut their allowances. Yes, N1 trillion is a lot of money to spend on our National Assembly...and we need to cut it. But that means that things like constituency projects, etc as well as jobs (senators and reps employ people too) would have to be cut...and I doubt the money would be enough.

Yes, Buhari should have diversified. The problem is,

1.Agriculture has not earned enough cash for us since the early 1980's. To rebuild our capacity in agriculture is going to take time...plus we have very very stiff competition (The South East used to be world leaders in palm oil. Now ...it is Malaysia and Indonesia. Can the SE rebuild its capacity to what it was in the 1960's).

2.Mining too...needs a lot of regulation. There is so much illegality there that cleaning up the sector is going to take years.

The thing is, e no go easy to pay this minimum wage. I hear people shouting Governemt is corrupt...and yes, they are right. The current government is not exempt from corruption. But even if we removed corruption....giving everyone an increase is not going to help.

Add the fact that the increase is for government workers only. Meaning..the private sector is going to come under pressure to match the public sector...increasing costs for a sector that is already finding it hard in Nigeria.Meaning...long term..investments get pulled out...jobs get lost.

So,let's face facts Nigeria...this country is not rich...and we need to make the hard choices to adjust to that fact. If NLC expects govt to fund a salary raise with oil prices that are too low to fund it...then they better get ready for more loans, or cuts elsewhere.

Either Nigeria takes the hard road to industrial development, or we keep on with our silly sharing money economics that we have been doing since 1960. ...which is why we are still underdeveloped.

I don talk my own.

babecode:
National Council of State,what will you gain by ‘cutting 3k from 30k’,in a nation where even Government agencies are declaring ‘record breaking’ Billions and trillions in revenues

theoldpretender:
NLC is not going to get their 30000 minnimum wage....because the government cannot afford it.

Oil yesterday was $62 per barrel. Yes, it is $2 dollars above the minimum set for budget...but it is still far less than our 2017 breakeven price of $140 per barrel.

The breakeven price of oil is the price we need oil to be to have enough revenue to fund a budget sans borrowing, sans deficit.

Since Bubu took over, oil has never been above $75 on average. So, essentially, we are earning at least $70 less than we need per barrel of oil in revenue.

And NLC now wants a salary increase.

The only way NLC gets an increase is either

1.Government cuts things like fuel subsidy, subsidy for educaiton, ...meaning that fees go up,and petrol retails for N250 per liter and above.

2.Government takes a loan to keep essential services running...while it redierects money to pay the wage from other ministries.

3.Yes, they need to cut their allowances. Yes, N1 trillion is a lot of money to spend on our National Assembly...and we need to cut it. But that means that things like constituency projects, etc as well as jobs (senators and reps employ people too) would have to be cut...and I doubt the money would be enough.

Yes, Buhari should have diversified. The problem is,

1.Agriculture has not earned enough cash for us since the early 1980's. To rebuild our capacity in agriculture is going to take time...plus we have very very stiff competition (The South East used to be world leaders in palm oil. Now ...it is Malaysia and Indonesia. Can the SE rebuild its capacity to what it was in the 1960's).

2.Mining too...needs a lot of regulation. There is so much illegality there that cleaning up the sector is going to take years.

The thing is, e no go easy to pay this minimum wage. I hear people shouting Governemt is corrupt...and yes, they are right. The current government is not exempt from corruption. But even if we removed corruption....giving everyone an increase is not going to help.

Add the fact that the increase is for government workers only. Meaning..the private sector is going to come under pressure to match the public sector...increasing costs for a sector that is already finding it hard in Nigeria.Meaning...long term..investments get pulled out...jobs get lost.

So,let's face facts Nigeria...this country is not rich...and we need to make the hard choices to adjust to that fact. If NLC expects govt to fund a salary raise with oil prices that are too low to fund it...then they better get ready for more loans, or cuts elsewhere.

Either Nigeria takes the hard road to industrial development, or we keep on with our silly sharing money economics that we have been doing since 1960. ...which is why we are still underdeveloped.

I don talk my own.

asuustrike1:
Isn't the federal government that allocate fund to them

somehow:
Does this make sense to you? Because your "employer" pays you salary, he can dictate how you spend it? Which Nigerian law gives FG right to fix salaries for state workers?

asuustrike1:
The law states that the state share in the revenue generated. Each state get revenue based on revenue formula from the federation account. Aside the federation account they get other benefits too plus the IGR. Don't let those governors deceive you with laws. When it comes to labour matter they quote constitution but when it gets to revenue sharing they keep quiet

somehow:
You're beating about the bush. WHICH LAW GIVES FG THE POWER TO DICTATE HOW MUCH STATES SHOULD PAY THEIR WORKERS?

somehow:
You're beating about the bush. WHICH LAW GIVES FG THE POWER TO DICTATE HOW MUCH STATES SHOULD PAY THEIR WORKERS?