Minimum Wage: Save Democracy advocates review of revenue sharing formula

By Mathew Dadiya, Abuja

Director General Save Democracy Africa, Dr. Ifedi Okwenna has called for a review of the revenue allocation to states and local governments to enable them pay the new N30, 000 minimum wage and provide social amenities for their people.

Okwenna, a former commissioner for environment in Anambra state, made the call on Tuesday in Abuja. He opined that with the current revenue allocation formula, it will be difficult for governors to pay the new minimum wage.

“The federal government is not sincere. With the current revenue allocation formula, you can’t expect the governors to pay the N30, 000 new minimum wage. Our revenue allocation must be looked into. 52.68 per cent to the federal government and 26.72 per cent to the 36 states and Abuja is not fair.

“You can say the governors are corrupt, but not all governors are corrupt. Quite a number of governors are doing wonderfully well. It is left for the people to hold their governors accountable. 

“The fact remains that the federal government are taking more and if the governors continue to pay N30, 000, two things are possible; they reduce their workforce or alternatively they will pay and stop doing any other thing. I know the civil servants are less than five per cent of the population of each state. But, if the federal government wants to solve the problem, there should be a review of the revenue sharing formula.

“Our revenue allocation formula is long overdue for change. As a matter of fact, federal government should not take more than 45 per cent and the state governments should take a bigger share because that is where the development comes from. The local governments should take a good chunk too because by so doing, you bring government to the people.

“I don’t see what the federal government is doing with education other than regulation; I don’t see what they are doing with health; I don’t see what they are doing with roads. Every state should construct their roads. As a matter of fact, in most states where you see good roads now, it is the state governments that constructed it. So those things should be divested into the hands of the states,” he concluded.