The Governor of Niger State, Babangida Aliyu, has said that six states are financially distressed with 15 others likely to go down if the revenue allocation formula was not reviewed to cushion the effect of the financial burden on the states as a result of the new minimum wage.
Gov. Aliyu said this at the swearing ceremony of newly elected local government area chairmen held yesterday in Minna, capital of Niger State.
He said that the salary bill of the state government and local government areas has increased by 30 per cent, leaving them barely able to pay just salary.
He said, “For instance, salary bill in Niger state local government workers of 60,000 was N2.5 billion monthly but with the new wage it is now N3.2 billion. Invariably, the local governments would do nothing but pay salary.”
Aliyu, who is also the Chairman of the Northern Governors Forum, added that the federal government should review the revenue formula, concentrate on foreign policies, formulate the educational frame work for the country and devolve more powers to the states and local governments.
Also speaking at the event, the Governor of Rivers State and Chairman of Nigeria’s Governors Forum, Rotimi Amaechi, called for the review of the revenue allocation formula.
Amaechi said that if true transformation was to take place in Nigeria the local government councils must be strengthened and properly funded.