Edo State Governor Godwin Obaseki has justified the increase in the state’s minimum wage from N40,000 to N70,000. He attributed the decision to the following factors:Exchange Rate Devaluation: The governor noted that the recent devaluation of the naira has significantly reduced the purchasing power of workers.
Economic Realities: The current economic challenges, including inflation and high food prices, have made it difficult for workers to meet their basic needs.
Willingness to Enhance Productivity: Obaseki believes that paying workers a living wage will motivate them to be more productive.
He emphasized that the government’s primary responsibility is to improve the well-being of its people. He stated that the previous minimum wage of N40,000 had fallen below the 2011 equivalent of $120 due to the exchange rate devaluation.
The governor highlighted cost-cutting measures implemented by his administration to mitigate the financial impact of the wage increase. These measures include:
* Reducing the state’s Independent Power Project (IPP) to save on diesel costs.
* Digitizing government operations to eliminate unnecessary expenses.
Obaseki assured that the state has sufficient funds in its budget to support the increased wage. However, he indicated that a revised budget would be submitted to the state assembly to accommodate the new development.
Regarding potential increases in overhead, pension, and gratuity expenses, the governor stated that he planned to allocate more funds from overhead to salaries. He also emphasized that the wage increase would be sustainable as long as economic realities in the state remained favorable. CONTINUE READING
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