A former Commissioner for Finance in Lagos State, Dr. Adebayo Adewusi, says many states will become bankrupt when the implementation of the new N30,000 minimum wage commences.
He said some states did not have the capacity to pay the new wage, adding that the situation might become worse if there was decline in revenue.
Adewusi, an immediate past chairman of WEMABOD, stated this in an exclusive interview with our correspondent on Monday.
Also giving an analysis of the N12,000 increase on the minimum wage, Adewusi said the N30,000 was lower in value compared with the N18,000 of 2015, due to the current level of inflation in the country and the exchange rate.
He said, “The N30,000 minimum wage in real terms is desirable at this time, given the level of inflation and the exchange rate as at now. From analysis, in 2015 before the President Muhammadu Buhari-led administration came on board, the minimum wage of N18,000 was $122, now the minimum wage of N30,000 today is about $85. Read more