ALGON president: LGAs won’t be able to pay N62k minimum wage

The Association of Local Government of Nigeria (ALGON) says it will be difficult for the local government administrations to pay workers the N62,000 proposed as the new minimum wage. 

On June 7, the federal government increased its offer for the new minimum wage for workers from N60,000 to N62,000.

However, the labour unions have insisted on N250,000.

Speaking on the business segment of Sunrise Daily, a Channels Television programme, on Thursday, Aminu Muazu-Maifata, ALGON national president, said some of the 774 LGAs in the country are still struggling to pay the N30,000 minimum wage approved in 2019.

“With the present allocation from FAAC, no local government council anywhere in Nigeria can be able to pay N62,000,” the ALGON president said.

“The 774 local government councils received slightly above 18 percent of the total FAAC of the federation, while the federal government received above 52 percent.

“Some councils could not even afford the N30,000 and are still working on the N18,000. Whatever is coming from FAAC presently, 90 percent goes into salaries and pensions.

“This tells us that without adjustment and an upward review of the percentage of the allocation coming to local councils, it will be extremely difficult or impossible for local government councils to pay N62,000.”