Revenue Formula Review, Solution To Minimum Wage Controversy – Ajulo | Independent Newspapers Limited
Newsletter subscribe


Revenue Formula Review, Solution To Minimum Wage Controversy – Ajulo

Posted: May 10, 2016 at 3:30 am   /   by   /   comments (0)

Temidayo Akinsuyi,

Lagos-   Barrister Olukayode  Ajulo, a former  National  Secretary of  Labour  Party (LP) on Monday said  the only viable solution to the new minimum wage controversy between organised labour and the federal government is a review of the revenue sharing formula.

Ajulo, who spoke in a chat with Independent said with the latest sharing formula, most states are unable to pay N18,000 minimum wage, while some are owing their workers over five months salaries.

While calling for states to be equal partners with the federal government, he said the federalism of Nigeria should be reflected in the sharing of revenue.

“Even with N18,000, many of the states are owing up to five months salary. They have no capacity to pay. That is why I canvassed that they review the Revenue Sharing Formula.  The federalism of Nigeria has to be reflected even in the sharing of revenue”.

“ If actually, we are federal, then both the federal and state government should be on the same level, equal partners. That is the real essence of federalism. But in a situation where the state government is being seen as a slave of a colonial master, then there will be a problem”.

“The law stipulates that there should be increment periodically, which means, the law envisage that there must be money and government should pay. So, the best way is to review it immediately and we don’t need any constitutional amendment”.

“That percentage should be proportional to what they are doing. The federal government is not doing anything. They don’t even own the land.   Apart from defence, what else are they doing? Yet, they are collecting so much revenue and that is why a senator can buy an official car of N36m” he said.