I Can’t Pay N18,000 Minimum Wage – Andoni Chairman

Chairman of Andoni Local Government Area of Rivers State Hon. Orom Ereferekumo Nte has said that he cannot pay the N18,000 new minimum wage unless the council’s monthly allocation is increased.

Nte, who spoke in an interview with The Tide at the Port Harcourt International Airport, Omagwa said the present allocation being received by his council was not enough to foot the new minimum wage for its 797 workers.

He said: “Local government council cannot foot the new minimum wage by the scenario I find myself. I have 797 workers. The wage bill will be too much and in addition to health workers, the allocation is not enough”.

According to the council chairman, “the sharing formula is one and the same. LGAs are the highest employers of labour than states and federal government. We can not retrench or sack the workers and at the same time we are forced to pay the minimum wage, where do we get the money?”

He expressed displeasure that local government council chairmen were not involved during the negotiation knowing that they are to bear the brunt of the payment and called the Federal Government to see to the plight of local government councils by reviewing upward their monthly allocations.

“Our allocations should be reviewed upward as we employ more workers. Compare the 774 local government areas, you can see we employ more. No amount of internally generated revenue (IGR) can be enough since most of us like Andoni have no tax generating areas”, Nte said.

The council boss added that, “we are in a big dilemma as internally generated revenue is not enough”. He called for a balance in the revenue sharing formula to enable to pay the N18,000 minimum wage.

“We are asking that the revenue formula be reviewed, particularly in favour of LGAs because they are closet tier of government to the people”.