[BREAKING] Minimum Wage: Top Nigerian Governor Says Payments May be Jeopardised in Some States, Gives Reason

Gusau, Zamfara state – As some workers await the implementation of the N70,000 minimum wage, Governor Dauda Lawal of Zamfara has said some states may find it difficult to survive if the proposed tax reform bills are enacted into law.

The governor spoke on Tuesday, December 10, during an interview on Channels Television’s ‘Politics Today’.

Legit recalls that on October 3, President Bola Tinubu asked the national assembly to consider and pass four tax reform bills.

The bills—the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill—have been controversial.

On October 28, the Northern States Governors Forum (NSGF) opposed the bills, saying the proposed legislation would harm the region’s interests.

In the same vein, the National Economic Council (NEC) asked Tinubu to withdraw the bills to make room for consultations.

Amid the debate over the bill, Lawal said that it would be difficult for many states to pay the minimum wage if the tax reforms were implemented.

His words:

“Well, the tax issue has a lot of components – there is the good aspect and there is the bad aspect. So, we are studying the situation so as also to advise our people on the way forward. It’s an ongoing process and we will continue with the engagement.

“Reform in a system is inevitable and we should always expect reforms. However, in trying to do that, we also need to be careful not to be in a hurry to do something that will later hurt us.

“So, I believe we should carefully study the situation, and have a clear understanding and take a common stand.

“There is a component of it that talks about derivation and definitely, if we are to go by it, it is going to affect some of the states in terms of what kind of inflows they have and invariably it may make it difficult for some states to be able to pay their salaries.”

Governor Lawal added:

“Honestly, if we were to go by it, it would be difficult for some states to pay salaries especially with the issue of minimum wage.

“Some states may not be able to survive so it is something that must be carefully studied so that we don’t hurt ourselves in the long run.”

Read more on minimum wage:

Bayelsa LG workers to get N80,000 minimum wage

Earlier, Legit reported that the Bayelsa state government approved the demand of organised labour to pay the new N80,000 minimum wage to Local Government workers.

The state government, which had earlier approved the N80,000 minimum wage for workers in the state employ, also promised to add to the December salaries of its workers the differentials that will arise from the ongoing discussions on the template used in paying the new wage last month.