State government representatives at the Federation Accounts Allocation Committee (FAAC) meeting have expressed dissatisfaction with the Federal Government’s decision to save additional revenue for the new minimum wage payment.
The dispute arose when the committee distributed a total sum of N1.36tn to the three tiers of government, with the Federal Government transferring N200bn into a non-savings account, making a total of N595bn. State Commissioners of Finance argued that the income should be shared, considering the current financial challenges faced by states.
Minister of Finance Wale Edun explained that the decision was taken to save for future financial obligations, including the payment of the N70,000 minimum wage. However, state government representatives insisted that they should be allowed to decide how to use their portions of the saved funds.
Organised labour has called for patience, expressing optimism that the minimum wage implementation process may be concluded by the end of August. Only Adamawa, Lagos, and Edo have claimed to have begun paying the minimum wage.
