Governors of Nigeria’s 36 states have warned that they may not be able to pay workers’ salaries if revenue collection continues to fall. Nigeria has seen a drastic revenue shortfall owing to the drop in global oil prices. President Buhari has already asked parliament to approve a plan to borrow to fund the country’s budget. The Governors say they have reached a point that is difficult to pay the current minimum wage of workers because of a severe shortfall in federal allocations to the States.
“Situation is tough. Most states can’t pay salaries and going into next year, even those states that are able to pay now are likely going to get to a stage where they are unable to pay salaries. I believe that is the same situation as the federal government. The oil revenue is actually going down and it is likely going to go down further down a lots more next year. salaries have gone up. so all kinds of consideration would be given . we would need to look at salaries of political office holders and also all other salaries because it’s a question of being able to run governance now, most states are not able to pay salaries not to talk of capital projects and if we cannot free funds for capital development, then the rest of Nigerians are just shut out of government.” Said Ifeanyi Okowa,Governor, Delta State