President Bola Tinubu's recent signing of the N70,000 minimum wage bill into law has sparked significant debate among state governors regarding its implementation.
Despite the Federal Government's commitment to this wage increase, many state leaders have expressed concerns about the financial implications of adhering to the new law.
During the latest Federation Accounts Allocation Committee (FAAC) meeting, state finance commissioners voiced their dissatisfaction with the federal government's decision to allocate N600 billion for future financial obligations, including the new minimum wage.
They argued that this decision would negatively impact revenue distribution among the states, which are already grappling with economic challenges.
The finance commissioners from Akwa Ibom, Delta, and Ekiti states criticized the federal government's choice to reserve an additional N200 billion in a non-oil savings account, claiming it detracted from the funds available for distribution.
Dr. Linus Noah, the Commissioner of Finance for Akwa Ibom, emphasized that the income should be shared to alleviate the financial pressures faced by the states.
Similarly, Okenmor Tilije, the Commissioner of Finance for Delta State, contested the idea of saving funds solely for the central government, advocating instead for immediate distribution to support state budgets.
In response, the Accountant-General of the Federation explained that the decision to save was made to prepare for future financial obligations, including the implementation of the new minimum wage.
