MINIMUM WAGE: Osinbajo challenges new governors to rack their brains

Vice President, Yemi Osinbajo on Tuesday charged returning governors and governors-elect to explore alternative means to generate revenue to pay the newly signed N30,000 minimum wage.

The Vice President made this note while representing President Muhammadu Buhari at the induction programme for the governors in Abuja.

He charged the governors to also explore opportunities in technological innovations to open up the economy of their states, especially in engaging the youths.

The Chairman of the Nigeria Governors’ Forum (NGF), Governor Abdulaziz Yari of Zamfara State had earlier warned of a looming economic recession in the middle of next year.

He added that Nigeria enjoyed Oil boom between 2001 and 2014 which helped the governors to achieve infrastructural development but things began to go south when prices of crude crashed to $75 per barrel in 2014.

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He added that this economic downturn made it impossible for states to pay workers salaries.

“On our part, we made a lot of achievements in infrastructural development and provision of social services because we enjoyed a relatively high oil price of between $100 and $114 per barrel between 2001 and the middle of 2014.

“However, by the mid-2014, the price of crude oil, which is sadly the main driving force of government’s expenditure, dropped to $75 per barrel. It, therefore, became very difficult for many states to even pay salaries of their workers.

“This scenario is a wake-up call for all of you to come amply prepared to face these kinds of challenges, especially since we are expecting the possibility of another cycle of recession by mid-2020 and which may last up to third quarter of 2021,’’ he said.

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