As negotiations for the new minimum wage template progress, the Association of Local Government of Nigeria (ALGON) has expressed concerns that local councils cannot afford the proposed N62,000 minimum wage due to insufficient allocations from the Federation Account.
Speaking to journalists in Lafia, the Nasarawa state capital, on Monday, Mr. Aminu Muazu-Maifata, the National President of ALGON and Chairman of Lafia Local Government Area, elaborated on the financial constraints faced by the 774 Local Government Councils across Nigeria.
He noted that these councils receive about 18 percent of the Federation Account allocations monthly, which he asserted is inadequate to meet the proposed N62,000 minimum wage.
Muazu-Maifata emphasized that even if local government executives were to allocate their entire monthly budgets to salaries, they would still lack the resources necessary to implement the new minimum wage.
He highlighted that local governments have multiple responsibilities beyond wage payments, including the provision of affordable healthcare, education, security, maintenance of traditional institutions, development of rural roads, and empowerment programs for youths and women.
He underscored ALGON’s support for wage increases for civil servants but insisted that current local government revenues could not sustain the proposed N62,000 minimum wage.
To address this, he appealed for an increase in the monthly allocations to the 774 Local Government Areas (LGAs) to enable them to meet the new wage requirements.
Furthermore, Muazu-Maifata advocated for a constitutional amendment to standardize the tenure of LGA officials across the country, proposing a uniform four-year term. He argued that the current varying terms—three years in some states and two years in others—hinder effective administration and the fulfillment of campaign promises.
He also pledged that ALGON would collaborate with other stakeholders to ensure the full implementation of the constitutional provision for the autonomy of area councils.
