Autonomy: Can LG Pay N70k Minimum Wages? Ogun Lawmaker Opens Up

• The N70,000 new minimum wage being able to be paid by the 774 local governments has been a debate since the emergence of the local government autonomy
• The Supreme Court earlier in 2024 approved financial autonomy for local government and empowered the federal government to hold council allocation where election has not been held
• However, Hon. Olajumoke Shaqiru Victor, the lawmaker representing Ward 13 at the Abeokuta South local government in Ogun state, expressed the view that the council can pay the new minimum wage once they start getting their allocations directly

Hon. Olajumoke Shaqiru Victor, the lawmaker representing Ward 13 at the Abeokuta South local government in Ogun state, has expressed optimism that the 774 local governments in Nigeria should be able to pay the N70,000 minimum wages once they start receiving their allocation from the federal account directly.

Victor expressed the view while speaking in an exclusive interview with Legit.ng. He maintained that the local government's internally generated revenue would boost the resources of the council to enable them to pay the new minimum wage.

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Supreme Court grants LG autonomy

Recall that the Supreme Court earlier in 2024 ruled that the local government should be considered as the third tier of government and that the state government should have nothing to do with their account.

It then granted financial autonomy to the local government and empowered the federal government not to release the allocation of any local government where an election has not been held.

Tinubu approved N70,000 minimum wage

Subsequently, the federal government approved the N70,000 minimum wage following a series of negotiations between the government, organised labour and the private sector. The minimum wage increase from N30,000 to N70,000 became inevitable following the removal of the fuel subsidy and the floating of the naira by President Bola Tinubu.

Following the approval of the new minimum wage by the federal government, there has been debate on the chance of local government being able to pay the new minimum wage. Some of the argument is that some local governments have no internally generated revenue and may not be able to pay primary school teachers.

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LG autonomy: Ogun lawmaker speaks on minimum wage

However, Victor, who is also a chieftain of the All Progressives Congress (APC) in Ogun state, expressed the belief that the local governments in Nigeria would be able to pay the new minimum wage if they got their allocations from the federal government, coupled with the revenue they generated.

The lawmaker said:

"I believe local government should be able to pay the N70,000 minimum wage. With the allocations being paid directly from the federal government and also the internally generated revenues from the local government, I think it should be enough to pay the minimum wage and also develop the communities within the local government fray."

Presidency shares when LG receive allocation directly

Legit.ng earlier reported that President Bola Tinubu's administration disclosed that the implementation of the Supreme Court judgment on local government autonomy will commence in January end.

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The Supreme Court ruled in July 2024 that the states did not have the constitutional right to have control over the funds of the local government.

Sunday Dare, the spokesperson to Tinubu, said the implementation was delayed to allow some mechanism to be put in place and has now been achieved.

Source: Legit.ng