Nigeria’s 774 local government chairmen have expressed their inability to afford the proposed minimum wage of N62,000, much less the N250,000 demanded by Organised Labour.
Speaking for the Association of Local Governments of Nigeria (ALGON), National President Aminu Muazu-Maifata cited severe financial constraints due to meagre allocations from the Federation Account.
He noted that local governments receive just over 18% of total revenue, while the Federal Government gets more than 52%.
“With the present allocation from the Federation Account, no local government council in Nigeria can afford to pay N62,000,” Muazu-Maifata said.
Muazu-Maifata stated that 90% of their funds currently go towards salaries and pensions, making it unsustainable to implement the proposed wage hike without increased funding.
“Presently, 90% of our inflow from the Federation Account goes into salaries and pensions. Without an upward review of the percentage of allocation to local government councils, it will be extremely difficult or even impossible for them to pay a N62,000 minimum wage,” he added.
He called for understanding and support from higher authorities, pointing out the diverse responsibilities local governments undertake beyond wage payments.
Meanwhile, financial analyst Bismarck Rewane has cautioned that raising minimum wages without corresponding productivity gains could harm Nigeria’s economy.
Rewane stressed the need for balanced negotiations and improved national productivity.
“It’s not just a matter of agreeing on numbers; it’s about balancing wages against national productivity and welfare,” he said.