Fayemi faults revenue sharing formula

Ekiti State Governor Kayode Fayemi has urged the Federal Government to allocate more funds to the states to make them more responsible and responsive to the yearnings of the people.

The governor, who expressed his displeasure over the present revenue sharing formula where the larger chunk is allocated to the Federal Government, leaving the states and local councils with low allocations, said approval of the new minimum wage by the Federal Government required that government makes move to increase states’ funding to enable them effectively take up the responsibility.

Fayemi, who stated this in Ado-Ekiti yesterday, however, assured workers that his colleagues are committed to the payment of the new minimum wage as soon as the Federal Government releases the template.

He reiterated the need for government at all levels to diversify the economy and think of ways to generate more revenues to enable them to effectively address the socio-economic challenges facing them.

Speaking on the issue of the minimum wage, Fayemi said: “Governors were part of the negotiations. It’s been signed into law; so, governors definitely would honour the law as it is. The issue that needs to be addressed fundamentally by workers and employers is one clear issue, is a minimum wage review also a general wage review?

“Minimum wage applies to anyone earning anything less than N30,000 now. It should not apply to people who are earning above that

“However, because the increase is going to have an implication on those who already earn above N30,000, there necessarily ought to be some adjustment to make provision for that shift. That is where the sticky point is.

“I have reassured the union leaders in Ekiti that once we get the template, difficult as it might be for us, we are committed to honouring the minimum wage review that we have signed up to at the Governors’ Forum and I can assure you that my colleagues in the governors’ forum are also committed to doing this.”