Kaduna State government has experienced sharp increase in its monthly salary bill to N6.3 billion following the state’s implementation of N72,000 minimum wage.
This was disclosed in a statement issued on Sunday by the state’s Chief Press Secretary, Ibraheem Musa.
According to the statement, the minimum wage implementation now sees the state government coughing out N6.3 billion for salary payment as against the previous N5.4 billion paid out of its N12 billion monthly revenue.
As against the minimum wage law which dictates consequential adjustment of every workers’ payroll, Kaduna state government only limited the payment to the least earning workers, leading to their inclusion in Nigerian Labour Congress’ (NLC) lost of states yet to implement the new minimum wage.
Reacting in the statement, Musa accused the Nigerian Labour Congress of being unfair stressing that the state cannot afford to spend 90 percent of its monthly revenue on the workers.
“It is unfair to lump the state with some others yet to do so,” he said.
‘’The Executive Governor of Kaduna State has complied with the spirit and letter of the National Minimum Wage Law, by paying the lowest paid civil servant N72,000 last month.
‘’NLC is harping on the issue of consequential adjustment, but the labour body should realise that there is a difference between salary increment and Minimum Wage,’’ the CPS explained.
He further explained that Kaduna State receives an average of N8 billion from the Federal Account Allocation Committee (FAAC) in Abuja every month.
“The state also generates around N4 billion monthly. That translates to N12 billion revenue monthly.
“But the monthly wage bill in the state has jumped from N5.4 billion to N6.3 billion with the implementation of the Minimum Wage last month.
“There is also the deduction of N4 billion for loan payments every month.
‘’So, the wage bill and the deductions have gulped over N10 million out of the total N12 billion revenue.
“That leaves only N2 billion for rural transformation, overhauling the health sector, revamping education and providing dividends of democracy to the people of Kaduna State,’’ Musa said.
He then contended that it would be unfair for the Kaduna State Government to spend almost all its revenue on consequential adjustments, after paying the mandatory Minimum Wage.
‘’There are over 10 million people who are also entitled to the accrued revenue of Kaduna State.
“There are 84,827 civil servants in the state.
“So, it is unreasonable for Government to spend over 90 percent of its revenue on just about one percent of the population,‘’ the governor’s spokesman explained.
He then pleaded with the NLC to exercise patience over the consequential adjustments, pending when Government’s revenue would improve.
“Gov. Uba Sani is labour-friendly.
“Kaduna State Government has already bought buses for civil servants which will convey them to and from work free of charge, as part of the palliatives to cushion effect of prevailing economic challenges,” Musa said.