States not FG should decide minimum wage – El-Rufai

Kaduna State Governor Nasir El-Rufai has said that states should set the minimum wage based on their income level, and not the federal government.

He stated this on Wednesday in Abuja during the fourth national Internally Generated Revenue (IGR) peer learning event organized by the Nigeria Governors’ Forum (NGF).

“I do not agree that the national minimum wage should be under the federation. I think minimum wage should be done by each state according to the level of income. If you look at the 1963 constitution, minimum wage was not in the Exclusive List. It was added during the military rule. There are a number of laws that were enacted during the military rule, and there is a need to look at them and do something about them,” El-Rufai said.

Edo Governor State Governor Godwin Obaseki said IGR would not be improved if there was no economic growth, adding that there is need to block leakages.

Kwara State Governor Abdulfatah Ahmed said as the nation prepares for a new minimum wage law which would put greater strain on state finances,  there was need for governors and all stakeholders to strike the necessary balance between the economic and social costs of generating increased IGR through taxes, fees, levies and fines.

Director General of the Nigeria Governors’ Forum (NGF) Secretariat, Asishana Okauru said from next year, the forum would facilitate additional support to states through the incoming World Bank State Fiscal, Transparency, Accountability and Sustainability (SFTAS) program-for-results.

Executive Secretary, Joint Tax Board, Oseni Elamah said that the capacity to trigger effective mobilization and utilization of domestic resources in Africa and Nigeria is beset with a number of challenges.