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Barely a month after the takeover of Kaduna DisCo over a N10 billion debts, the federal government has concluded plans to take over Benin Electricity Distribution Company, BEDC, over alleged prolonged poor performance.
BEDC, one of the successor distribution companies, created, following the unbundling and privatization of the state-owned Power Holding Company of Nigeria Plc, currently distributes electricity in Delta, Edo, Ekiti, and Ondo states, with a geographical coverage of 57,353 square kilometres.
Checks by Vanguard, weekend, indicated that the Nigerian Electricity Regulatory Commission, NERC, an independent regulatory body with authority to regulate the electric power sector in Nigeria, has already penciled down new directors and management to manage the DisCo in the coming days.
Meanwhile, the governments of Delta, Edo, Ekiti, and Ondo states, which complained about poor service delivery to their people, have petitioned NERC, seeking to play active roles in the management of BEDC.
The states, which have indicated interest in exercising their rights to participate in the company’s decision-making, also called for the unbundling of the DisCo’s operational areas based on state boundaries, stressing that they had not given consent to other stakeholders, including the Bureau of Public Enterprises, BPE, to act on their behalf.
In their letter – Notification of Interest to Exercise Shareholder Rights in Benin Electricity Distribution Company – to NERC and sighted by Vanguard, the state governments, said: “We write to formally inform NERC of the intent of the governments of Delta, Edo, Ekiti and Ondo states (the BEDC State Governments) regarding our collective residual equity in the Benin Electricity Distribution Company, BEDC.
We intend to exercise shareholder rights – Four states
“After a thorough evaluation of the operational deficiencies and services delivery failures to our states, the BEDC state governments intend to exercise our shareholder rights in BEDC, to ensure the efficient provision of electricity services to our citizens.
“The provision of reliable electricity to enhance the welfare and development of our people is a core priority of our governments. As such, we cannot afford to overlook the critical importance of ensuring that electricity distribution services provided by BEDC meet the needs and expectations of our populace, henceforth.
“In exercising our shareholder rights, the BEDC state governments intend to actively be involved in the decision-making processes of BEDC, both at the board and management levels of the company, to strengthen service operations to enhance service delivery, improve operational efficiency, increase electricity access to unserved and underserved communities and ultimately, transform the electricity sector within our states.
“Please, note that our demand is not capricious and merely wishes to correct a historical lapse. We wish to emphasize that at no point did the BEDC state governments give any Power of Attorney (PoA) to either the federal ministry of finance incorporated or the bureau of public enterprises, BPE, with respect to our shareholding in PHCN successor, Benin Electricity Distribution Company, or the post-privatized entity.
“It has come to our notice that the commission intends to exercise a regulatory takeover of BEDC by March 31, 2024. The commission is kindly requested to formally notify the BEDC state governments before taking any regulatory action to appoint new directors and a management team for the company. We also urge the commission to immediately commence the process of unbundling BEDC into operational areas along state boundaries.
“We wish to assure the commission of our support and cooperation in exercising any regulatory action against BEDC and its core investor, provided our rights as shareholders in the company are not breached.
“Lastly, we kindly request a meeting with the commission to discuss our intention as outlined in the letter, viz, to exercise our rights in the company to work out how these rights will be exercised under the commission’s regulatory oversight and for the benefit of all stakeholders involved.”
States have rights to determine future of Discos —Ekiti govt
In a telephone interview with Vanguard, the Commissioner for Infrastructure & Public Utilities, Ekiti State, Prof. Mobolaji Ebenezer Aluko, said: “The state and federal governments have 40% of BEDC, and our four states as a whole have 34.2% of that 40%.
”Nationally, all states have 27% of the 40% of government, with the federal having 13%, and then the states have as much right, even more rights, than the federal government, to sit at a table to determine the future of the DisCos.
“The Federal Government has asked the DisCos to unbundle along state lines, according to the Electricity Act 2023. The BEDC states are merely demanding a seat at the upcoming discussions, in the spirit of subnational democracy.
”We also believe that our participation will lead to more efficient distribution of the abysmally small energy currently available nationally: that is 13 gigawatts, GW, capacity generation – 8GW Transmission capacity – 3-5GW distribution after Aggregated Technical Commercial and Collection Loss, ATC&C losses.
“The energy mix for power generation should vary from one state to another. Renewable energy should also be utilised and distributed off-grid. The cost of transmission will reduce because of short distances from generation within each state. DisCos should have no monopolies and should provide adequate meters to consumers.”
The Senior Staff Association of Nigerian Universities and Non-Academic Staff Union of Educational Associated Institutions will resume today (Monday) after the seven-day warning strike they embarked upon last week.
Their sister union, the National Association of Academic Technologists of the University, also embarked on a three-day strike last week.
The three unions are protesting the withheld salaries following a prolonged strike they embarked upon in 2022.
The administration of former President Muhammadu Buhari invoked withheld their salaries by invoking the policy of ‘No Work, No Pay’.
However, President Bola Tinubu recently ordered the payment of the withheld salaries of members of the Academic Staff Union of Universities, who had also embarked on a strike in 2022.
As a result, NASU, SSANU and NAAT called on the government to pay them too, threatening to embark on a strike.
Amid the strike last week, the striking unions met with the Federal Government but the meeting ended in a deadlock.
Giving an update on the issue during a Zoom meetng on Sunday, the National President, Joint Action Committee of SSANU, NASU, Mr Mohammed Ibrahim, said: “The strike ends tonight, (Sunday), everyone is resuming to work on Monday, and the government has till now not acceded to our demands. No payment has been made. The government is not responding to us.”
He added that the National Executive Council of the unions would meet and discuss during the week to know the next line of action.”
Ibrahim emphasised that aside agitation for the payment of their withheld salaries, there was the need for the Federal Government to consider the renegotiation of 2009 FGN/NASU and SSANU agreements and payment of N50bn earned allowances.
Also speaking, National President, NAATS, Mr Ibeji Nwokoma, revealed that the union went on strike between March and August 2022, stating that the Federal Government, through the Minister of Education, announced publicly at a stakeholders’ meeting that all staff of the university should be paid, saying they were surprised that the non-teaching staff were exempted.
“We all went on a legitimate strike action; I want to believe something went wrong or somebody is trying to cheat us,” he said.
Also speaking, the Vice-President of SSANU, Dr Salaam Abdussobur, said, “We are not a strike-happy union. The reality is the fact that generally, the FG is treating the university staff with contempt. The government is not holistic in the way it treats the university workers, and the SSANU/NASU is treated lower in the cadre. For instance, Federal Government universities do not have Governing Councils, the government is turning the Vice-Chancellors into dictators.”
Traditional rulers in Delta State have vowed to aid security agencies in apprehending the perpetrators responsible for the killing of military officers in Okuama community.
The monarchs described the killings as unprovoked and barbaric, which led to the deaths of the officers on rescue missions.
Rising from a meeting of the Delta State Council of Traditional Rulers in Asaba, the monarchs, in a five-point communiqué issued at the end of the meeting, condemned the killings.
Council Chairman and Orodje of Okpe, Major-General Felix Mujakpuero (retd), Orhue I, while commiserating with the immediate families of the slain officers, the Nigerian Army and the Federal Republic of Nigeria, prayed that God grant their souls eternal rest.
The Delta monarchs called on the Delta State government to set up an independent investigative panel of inquiry to ascertain the immediate and remote cause of the communal crisis between Okuama and Okoloba communities.
The royal fathers also appealed to the Nigerian Army to carry out their search for the perpetrators of the killing of the gallant officers in line with global best practices.
They called on members of the public to stop peddling falsehoods and unsubstantiated claims, as such action could further exacerbate the already fragile peace in the state.
The meeting was attended by the immediate past chairman of the council and Obi of Owa, Dr Emmanuel Efeizomor II; the first vice chairman and Pere of Akugbene Mien, SP Luke Kalanama VIII; and the second vice chairman and Obi of Ubulu-Unor, Agbogodi Henry Kikachukwu I, among others.
Although President Bola Ahmed Tinubu will turn 72 on Friday March 29, 2024, he has asked well wishers not to commemorate his birthday with pomp and pageantry.
Tinubu, who spoke through his aide, Bayo Onanuga, Special Adviser on Information & Strategy on Sunday, said the day will be another important milestone in his life as a leader and a statesman.
According to the president, it is not unusual that during an auspicious occasion as this, it is customary for family members, friends and associates to celebrate him in different ways.
But as the leader of our country, President Tinubu in deference to this challenging times will not host any birthday event and does not want any of his associates and numerous well-wishers across the country to organise any celebratory event on his behalf or in his name.
Onanuga said, “The President appreciates the honour of being the leader of Africa’s leading nation at this time and he is working very hard to make life better for the generality of our people.
“Because of the present mood of the nation and recent killing of the officers and men of our Army and Police in Delta State and recent spate of security breaches by criminal elements in different parts of Nigeria, there should be no form of birthday event and placing of birthday goodwill advertorial messages in newspapers. Goodwill messages should not be placed on radio and television stations too.
“He enjoins friends and associates who may wish to place goodwill advertorials to kindly donate the money to charity organisations of their choice in his name.
“Although the President appreciates the gallantry of our armed forces in freeing our children kidnapped in Kuriga, Kaduna State and in Sokoto State, he will use the opportunity of his birthday to reflect and re-dedicate himself to the task of building a more stable, more secure, virile, prosperous and united Nigeria”.
A former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has criticized the notion that the naira will stabilize at N400 to the dollar.
The political economist deems the notion as unrealistic.
Naija News reports that Moghalu expressed his viewpoint through a series of posts on his X account on Sunday.
He wrote: “Those who want the Naira to be N400 to the $ are living in a dream world. Even discounting for the negative impact of speculative attacks on the value of the Naira, the exchange rate will (and should) reflect its market value in reality, not the artificiality that the Emefiele era central bank sought to maintain to please economic illiterates in political power at the time.
“That artificiality created room for massive arbitrage by speculators which bled the economy. Nigeria does not (yet) have a productive export economy. That’s the heart of the matter.
“And we do not have $100 billion in foreign reserves. So on what basis would the Naira forex rate return to some fantasy land soon? It will also take time to regain or achieve full investor confidence such as we had when we were there (and the rate was N150-165 to the $).
“The sooner we focus on a painstaking creation of value-added manufacturing export economy that earns forex beyond oil in real and significant terms, the better.
“Key to this is the electricity conundrum in which we are at less than 4,000MW of generation for a population of 200 million for decades now. Take power to even 20K megawatts (let’s not talk of 50K for South Africa’s 60 million population or Brazil’s 181K megawatts for a population only slightly larger than Nigeria) and you will see what the Nigerian entrepreneurial spirit is capable of.”
There is uneasy calm on Taraba-Benue border along Wukari – Zaki Biam Highway as gunmen suspected to be militia group operating in Benue State intercepted a bus with 10 passengers heading from Wukari to Zaki Biam.
The bus was stopped few minutes after it took off with the 10 passengers at Takum Junction in Wukari, the headquarters of Wukari Local Government Area of Taraba State on Saturday at about 11am.
Wukari is the home town of Dr. Agbu Kefas, the governor of Taraba State.
The passengers, according a friend to the driver of the bus who spoke to our correspondent on condition of anonymity, were to stop over at Gboko in Benue State, and take another vehicle to Kwara State.
The friend revealed that the passengers were intercepted at Jootar, a major village at border from Benue side.
“My friend revealed to me that he picked the ten passengers at Takum junction in Wukari, among the ten, there was one woman. The gunmen came on motorcycles well-armed, they stopped him in the middle of Jootar town.
“He said the gunmen ordered him to come down from the bus, as soon as my friend came down, one of them went in and drove off, leaving my friend with the other gunmen who were on the motorcycles.”
LEADERSHIP gathered that people from Wukari and Jalingo the headquarters of Taraba State became agitated to know the whereabouts of their loved ones.
Some were visibly seen worried while making phone calls to stop their relatives from traveling on the road.
Efforts to talk to the Chairman of Wukari Local Government Council, Hon. Ismaila Dauda, to confirm the identity of the passengers failed as he did not pick his phone calls nor respond to our correspondent’s messages as at the time of the report.
[Leadership]
Paramount Ruler of Igbomotoru Communities in Bayelsa State, HRH Ayibaikie Aseimighen Ofongo, has narrated how the militant gang currently on the run over the killing of soldiers in Delta State, forced him out of his community.
Addressing reporters in Yenagoa, Bayelsa capital, the monarch said the over the years, the gang, which operated unchallenged, perpetrated criminality in Southern Ijaw local government area of Bayelsa.
He said after he was banished from the community three years ago, the militant leader took control until the killing of soldiers at Okuama.
Ofongo, a retired army officer, said having served in the armed forces, he could not have kept quiet while militants perpetrated criminality in his domain.
He also commended the military operations in Igbomotoru Communities, saying so far, troops have only gone after the fleeing militant leader and his boys.
He said: “My Community, Igbomotoru, for some time now, have had some internal problems; there is a group that went and brought militants to the community to dissolve the ruling class, and at the same time leading to vandalizing national assets of oil companies in our area, which I opposed. I said if we had any problem with the oil companies, we should apply the normal system of communication so that they can look at those issues, but this advice did not go through with the group.
“And since that time, there have been problems, based on that differences we had. For almost three years now, I have not been allowed to visit my own community. My life was threatened; I had to escape from the community. I only went to the community when I heard about the death of my relations.
“From where I’m hiding, I got telephone calls from both home and from some other relations and friends on what happened at Igbomotoru; what I was told was that military men came into the community, particularly on Igbomotoru ll, Igbomotoru is on both sides of River Sangana. So, when I had this issue, I enquired from sources. I was told there was an Army invasion of the community, I was told a militant leader from Igbomotoru by name Endurance Amagbain went to Delta and some military officers who were there to make peace were shot dead, that was why military invaded our community last Sunday.
“The Army troops that came, they know where the person they wanted was and they went there, and some miscreants who are members of the militant gang came out and wanted to know what was happening in their usual militant way, and there was opening of fire from the Army, and some of them were killed. So, it was only members of the militant gang that were killed, not the natives.
“I have previously written several petitions to both the presidency, the state government and the security agencies about the activities of this militant gang, and we attended meetings with the governor, we also had time with the oil companies representatives, because when they started, they started with the oil companies and then rolled back to me, claiming I had been deposed and all that, so all those activities were reported to the government, and so many meetings were held by the government and oil companies to resolve that, but the people continued to do what they thought was good for them, until we reached this state. It was my opposition to this militant group that made them force me out of the community.
“As a Paramount Ruler and somebody who has served in the Nigerian Army and retired, I always report any act of lawlessness to the authorities, if not, that means I am involved. Army operation at Igbomotoru Community is just after the fleeing militant gang at Igbomotoru ll, where their leader resides and commit all these crime. In fact, they have not crossed to Igbomotoru 1, but because of fear, people have deserted the entire community.”
Military has done well
“You see the military has done well, what happened to the military, even during my time as a soldier, you cannot go and tempt the lion and you will think he will sit down and begin to look at you, the militant gang went to Delta to kill army personnel and the army came to kill them, they didn’t move from house to house in Igbomotoru to kill everybody.
“I am not against government taking any action in respect to what has happened, because lives have been lost. It was only houses where the prime suspect in the killing of soldiers staysthat were burnt not innocent people’s houses. That is why I appeal to the federal government to establish army formation at Igbomotoru Community, it will help checkmate the criminality.
“So, I urge the army to continue to be civil as they are hunting for their suspected killers of soldiers, because the community is ready to assist them to ensure that all suspects involved in the dastardly act are apprehended,” he said.
[DailyTrust]
A stampede during an almsgiving zakat for the poor in Bauchi State has led to the death of four people.
The stampede occurred at about 10am at the Shafa Holdings Company plc headquarters along Jos Road, on Sunday.
A 17-year-old identified as Naima Abdullahi, is currently receiving medical treatment at the Abubakar Tafawa Balewa University Teaching Hospital in Bauchi.
Confirming the incident, the Police Public Relations Officer in the state, Ahmed Wakili, said the situation has been stabilized as at the time of filing his report.
Wakili said the police acted swiftly upon hearing the news, adding that the police commissioner encouraged the public to stay composed.
[DailyPost]
Foremost Yoruba socio-cultural organization, the Yoruba Alliance Forum (YAF), at the weekend urged the Aare Onakakanfo of Yorubaland, Iba Gani Adams, the Yoruba nation activist, Sunday Adeyemo, popularly called Sunday Igboho and many others that have been bothered by the recent viral audio content credited to Iba Gani Adams, to sheath their swords and unite to fight the common enemies of Yoruba race.
The leaders of the pan-Yoruba organization made the appeal on Saturday, after reaching out to Iba Gani Adams on the telephone, as part of efforts to ensure peace in Yoruba land.
YAF, in a statement signed by the chairman, Chief Onitolo-Ariyo Adejare, and the secretary, Comrade Adedeji Oluwaseun, described the unity of the Yoruba as the best weapon to fight common enemies.
The YAF chieftains also added that Yoruba sons and daughters, both at home and in the diaspora are worried about the ongoing social media attacks between loyalists of Iba Gani Adams and that of Sunday Igboho.
The group also described those who are sending the viral audio content across the social media platforms as enemies of the Yoruba race, saying that such acts were very libellous because they had intruded into the privacy of Iba Adams and the other person involved in the private discussion.
“This unlawful act can affect the much-needed unity and peace in Yoruba land and can also expose the race to further attacks by the enemies of the Yoruba.
“The issue that transpired between Iba and his former aides in 2015 as well as the audio content generated from a private discussion in 2021 should not be the clog in the wheel of the progress of the Yoruba race.”
[TheNation]
Several people have been reportedly killed in a clash between rival youths in the Mikang Local Government Area of Plateau State.
It was learnt that many people were also injured during the clash said to have started on Saturday night between Taroh and Motola youths in the locality and lasted till the early hours of Sunday .
The state Commissioner for Information , Musa Ashoms, confirmed the development to The PUNCH in Jos on Sunday .
“I Cannot Call My Forefathers Unwise Because I’m A Christian” -Says A Herbalist Who Is Also A Pastor
The commissioner, who blamed the situation on disputed land in the area, said, “I have just called the Mikang Local Government chairman over the issue. He told me that it is something that could have been avoided and not allowed to escalate to the point that people lost their lives, and at the moment, there are persons receiving treatment at the hospital.
“It started as a result of dispute over land.
“According to the LG chairman, the land in question cannot even produce six bags of rice, and you know when people are attached to their land, they could go extra mile.
“It is something they could have controlled their nerves, but somehow, it got to a point where others too joined them and houses were burnt down and people were maimed.”
He advised the people to always explore alternative dispute resolution mechanism in resolving their differences and refrain from taking the law into their hands .
When contacted, the state Police Public Relations Officer, Alabo Alfred, said security operatives had been deployed to the troubled area while investigation over the incident continues
“The area is now calm. People are going about their normal businesses,” the PPRO added
[Punch]
More...
A former deputy governor of the Central Bank of Nigeria, Kingsley Moghalu, said those expecting the Naira to be N400 to the Dollar are living in a dream world.
Moghalu made this assertion in a statement via his X handle on Sunday.
According to him, the exchange rate should reflect its market value in reality.
Moghalu claimed that the Central Bank had created artificiality that it sought to maintain to please economic illiterates in political power at the time.
The economist insisted that artificiality created room for massive arbitrage by speculators which bled the economy.
He suggested that the sooner the country focused on the creation of value-added manufacturing export economy that earned forex beyond oil in real and significant terms, the better.
Moghalu said, “Those who want the Naira to be N400 to the $ are living in a dream world. Even discounting for the negative impact of speculative attacks on the value of the Naira, the exchange rate will (and should) reflect its market value in reality, not the artificiality that the central bank sought to maintain to please economic illiterates in political power at the time.
“That artificiality created room for massive arbitrage by speculators which bled the economy. Nigeria does not (yet) have a productive export economy. That’s the heart of the matter.
“And we do not have $100 billion in foreign reserves. So on what basis would the Naira forex rate return to some fantasy land soon? It will also take time to regain or achieve full investor confidence such as we had when we were there (and the rate was N150-165 to the $.
“The sooner we focus on a painstaking creation of value-added manufacturing export economy that earns forex beyond oil in real and significant terms, the better.
“Key to this is the electricity conundrum in which we are at less than 4,000 megawatts of generation for a population of 200 million for decades now.
“Take power to even 20K megawatts (let’s not talk of 50K for South Africa’s 60 million population or Brazil’s 181K megawatts for a population only slightly larger than Nigeria) and you will see what the Nigerian entrepreneurial spirit is capable of,” he said.
[Vanguard]
President Bola Tinubu says his administration is deploying “detailed strategies” to ensure schools are secure for learning in the country.
In a statement on Sunday, Ajuri Ngelale, presidential spokesperson, said Tinubu welcomed the news of the release of the abducted students of the Government Secondary School Kuriga, Kaduna, and Tsangaya in Sokoto.
The president commended Uba Sani, governor of Kaduna; Nuhu Ribadu, the national security adviser, and the security agencies for the safe release of the abducted Kuriga students.
The president said the dedication towards the safe release of the victims is “critical to optimal outcomes in cases of mass abductions”.
In the early hours of Sunday, Sani announced the release of the abducted Kuriga schoolchildren.
Sani Abdullahi, a teacher at Government Secondary School Kuriga, had said 287 students were missing after the attack on the schools.
On Friday, 15 students abducted from a Tsangaya school in Gidan Baya, Gada LGA of Sokoto regained their freedom.
The students were kidnapped on March 9 when bandits attacked their community.
[TheCable]
Human rights advocate, Femi Falana said official negligence led to death of Nasarawa State University students, who died in a stampede incident that occurred in the institution.
Falana stated this in a statement he made available to Vanguard on Sunday.
The statement reads, “Governor Abdullahi Sule of Nassarawa State was reported to have ordered the distribution of two 7.5 kg bags of rice and N5,000 to each student of the State University at Keffi.
“The distribution of the palliative was scheduled to hold at the state university’s convocation square last Friday morning. As the distribution exercise was not well organised, there was a stampede of thousands of students at the venue. The stampede led to tragedy as many students were injured.
“As the university health centre was ill-equipped to treat the injured students, they were rushed to the Federal Medical Centre in Keffi, Nassarawa State.
“As the injured students were not promptly attended to, two female students were pronounced dead while at least 17 others were left with varying degrees of injuries arising from sofocation at the venue of the distribution of rice. Our thoughts and condolences go to the families and friends of the deceased students.
“According to the state government, the tragic incident occurred “when suspected hoodlums and some misguided students forced their way into the school’s convocation ground to cart away the rice kept at the venue meant for distribution as palliatives to students.”
“But the Vice-chancellor of the University, Prof Suleiman Bala decided to blame the tragedy on the victims of the official negligence. He was reported to have said that “our students were not patient enough to follow the process of accessing these palliatives.”
React to the development, Falana described the death of the students as unfortunate, noting that the authorities of the University failed to draw any lesson from the recent stampede which claimed the lives of seven persons during the distribution of 25kg bags of rice in Lagos by the Nigeria Customs Service.
Falana, the Chair, Alliance on Surviving Covid 19 and Beyond (ASCAB), stated, “No doubt, the tragedy would have been averted if the University management had distributed the 7 kg bags of rice to the students through their departments. Indeed, there was no justification to have assembled thousands of students without a standby ambulance.
“As if that was not enough, the university health centre was not equipped to attend to the injured students. Hence, they were rushed to the Federal Medical Centre in Keffi where two female students were certified dead.”
Falana, however, said, having regard to the facts and circumstances of the tragic incident, the Nassarawa State police command should be directed to investigate the allegations of criminal negligence which led to the unfortunate death of the two students.
He said, “The culprits should be prosecuted without delay. In view of the official statement that hoodlums hijacked the distribution exercise the state government and the university management are required by law to compensate the bereaved families of the two students.”
[OpinionNigeria]
Abia, Anambra, Bayelsa, Kebbi, Nasarawa, Zamfara default payment of N30,000
Many of the 36 states are in a quandary on how to cope with payment of the new minimum wage according to reports from some of the states.
Negotiation is already intensifying between the federal government and labour over the new minimum wage with investigation showing that six states
Abia, Anambra, Bayelsa, Kebbi, Nasarawa and Zamfara- are yet to implement the current minimum wage of N30,000,almost six years after its introduction.
Four other states –Ebonyi, Benue, Kogi and Osun – are only paying the minimum wage to workers on levels one to six and in the case of Osun, beneficiaries are those from level 7 and below.
Many of the states have also not done well in the payment of wage award to workers to cushion the effect of the current rise in the cost of living, according to a report prepared for the Nigeria Labour Congress (NLC).
In the NLC report sighted by The Nation states confirmed as paying the current minimum wage are: Adamawa, Akwa Ibom, Bauchi, Borno, Delta, Edo, Ekiti, Enugu, Gombe, Jigawa, Kaduna, Kano, Katsina, Kwara, Lagos, Niger, Ogun, Ondo, Oyo, Plateau, Rivers, Taraba and Yobe.
The excuse often given by the states that have not been paying the minimum wage is paucity of funds.
Although the monthly allocations to the three tiers of government have increased substantially in the aftermath of the fuel subsidy withdrawal, the defaulting states are still foot dragging on effecting payment of the minimum wage.
The situation appears even worse in respect of payment of wage award by the states.
Only Ondo and Lagos states are recorded as having paid anything close to the N30,000 per month for a half year as initiated by the federal government.
Ondo paid N35,000 and Lagos N31,000.
Some other states pay amounts ranging between N10,000 and N25,000 while some have not even paid anything yet.
States yet to pay the wage award are: Abia, Akwa Ibom, Bayelsa, Benue, Borno, Edo, Kaduna, Kebbi, Kogi, Nasarawa, Rivers, Taraba and Zamfara.
Akwa Ibom is said to have paid palliative allowance for Christmas only while Anambra paid only N12,000 and Niger State N20,000 also in December.
Delta paid N10,000 for September, October and November.
Reports from the states said the governors were not amused by the high figures demanded by labour activists during the recent zonal public hearing on the minimum wage organized by the 37-member committee set up on the issue by the federal government.
The figures range between N447,000 and N850,000 per month.
The committee which is headed by a former Head of Civil Service of the Federation, Bukar Aji, has six governors among its members: Mohammed Bago (Niger State, representing the North Central); Bala Mohammed (Bauchi State, representing the North-East); Dikko Radda ( Katsina State, representing the North-West);Charles Soludo (Anambra State, representing the South-East); Ademola Adeleke (Osun State, representing the South-West); and Otu Bassey (Cross River State, representing the South-South).
Also on the panel are Minister of State for Labour and Employment, Nkeiruka Onyejeocha; Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget Economic Planning, Atiku Bagudu, and the Head of the Civil Service of the Federation, Dr. Yemi Esan.
The governors, who said unrealistic demands from Labour would not do anyone any good, urged the Minimum Wage Committee to consider the capacity of the states to pay the new minimum wage.
The committee is scheduled to meet again later this week.
Experts: How governors can cope with new minimum wage
A former Director-General at the Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, believes that the states can pay a reasonable minimum wage if they have the right policies in place.
“Well, the point is that the states are getting more revenue now and so, their capacity to pay has increased,” he told The Nation by phone yesterday.
He added: “There is no doubt about that. But the major thing I think they can do to meet up with the minimum wage obligation is to take a cue from what the federal government is doing.
“Many of them (states) have over-bloated workforce, whether at the state or local government levels. Some of them do not need more than half or two thirds of the current workforce that they are carrying.
“There are so many idle hands in the state bureaucracies. There are too many political appointments and too many people on their payrolls. So, they have to also prune down that.
“Because if you must engage people, you must give them a wage that makes sense. You don’t just engage people for the sake of engaging them. What is worth doing at all is worth doing well. “So, let them just retain the size of the workforce that they can give a wage that is a bit reasonable, especially given the realities of inflation that all of us are facing now. I think those are the things I think they should do first and foremost.
“Then of course, they should also be more creative in getting more revenue internally. Many of them are too dependent on the federal allocation. So, they need to be a lot more creative.”
On whether the state governments need to consider raising taxes in order to jack up their revenue base, Yusuf spurned the idea, but would rather they get more ingenious with the tax administration.
“Asking the states to boost their revenue profile is not about raising taxes at all. It’s about efficiency in tax administration. In many of the states, their tax administration system is so very loose. People are doing business in those places and it is their responsibility to pay tax. We are not talking about increasing the taxes regime. We are talking about efficiency, we are talking about using technology to ensure that the citizens’ taxes, especially the corporate citizens also live up to their statutory obligations to the government.“
According to him, “Some people are doing businesses across the states and some of those businesses are doing well and some of them are not paying any taxes at all. If you go to some of those states, you have some big properties that people have built there; it’s not poor people that built them there. In many of those places, many of them are not paying any form of taxes. So, the point to make is about efficiency in tax administration.”
Pascal Efe, a public affairs analyst, shares the same sentiments with Yusuf. “I agree that a new minimum wage is indeed inevitable given the current state of affairs. What the state governors can do is to ensure proper management of their resources by cutting down on many wasteful expenditures. That way they can pay the minimum wage and still be able to carry our critical infrastructure in their respective states.”