Kaduna govt: Why we can’t pay workers more than N72,000 as minimum wage

The Kaduna State Government has explained the reasons behind the payment of N72,000 as the new minimum wage to workers in the state.

The Nigeria Labour Congress (NLC) had recently described the payment as “grossly unfair because the least paid worker received N72,000 as gross salary in November.”

Ibraheem Musa, the Chief Press Secretary to Kaduna State Governor Uba Sani, in a statement on Sunday, December 1, 2024, said it was a misrepresentation for the NLC to claim that the state has defaulted on the payment of the new minimum wage.

Musa stated: “His Excellency, the Executive Governor of Kaduna State, Senator Uba Sani, has complied with the spirit and letter of the National Minimum Wage Law, by paying the lowest paid civil servant N72,000 last month.

“NLC is harping on the issue of consequential adjustment but the labour body should realise that there is difference between salary increment and Minimum Wage,’’ the statement explained.

“Kaduna State receives an average of N8 billion from Federal Account Allocation Committee (FAAC) from the centre every month. It also generates around N4 billion monthly. That translates to N12 billion revenue monthly.

“However, the monthly wage bill has jumped from N5.4 billion to N6.3 billion with the implementation of the Minimum Wage last month. And there is also the deduction of N4 billion for loan payment every month.

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“So, the wage bill and the deduction has gulped over N10 million out of the total N12 billion revenue. That leaves only N2 billion for rural transformation, overhauling the health sector, revamping education and providing dividends of democracy to the people of Kaduna State.”

Musa said it would be unfair for the Kaduna State Government to spend almost all its revenue on consequential adjustments, after paying the mandatory minimum wage.

“There are over 10 million people who are also entitled to the accrued revenue of Kaduna State. There are 84,827 civil servants in the state. So, it is unreasonable for government to spend over 90% of its revenue on just about 1% of the population,” the governor’s aide added.

Musa, however, urged the NLC to exercise patience over the consequential adjustments, pending when the government’s revenue improves, adding that Sani is labour-friendly.

He added that the Kaduna State Government has bought buses for civil servants which will convey them to and from work free of charge, as part of the palliatives to cushion the prevailing economic challenges.

The Star