Yenagoa, Bayelsa — The Bayelsa State Government has called on local government councils to increase their internally generated revenues (IGR) in order to meet the new minimum wage requirements recently announced by Governor Douye Diri.
State Deputy Governor Lawrence Ewhrudjakpo made this appeal on Friday while meeting with the executive committee of the Nigerian Union of Pensioners (NUP), local government branch, in Yenagoa.
This advice comes on the heels of Governor Diri’s announcement of a new minimum wage of N80,000 for workers in the state. Deputy Governor Ewhrudjakpo emphasized the importance of local governments exploring new revenue sources beyond their monthly federal allocations, which he said would be insufficient to sustain the increased wage.
“I have asked experts to assess the local government’s capacity to meet the new minimum wage,” Mr Ewhrudjakpo stated. “While council workers may seek parity with state workers, we must recognize that local and state governments do not share the same funding levels. Many of our councils struggle to generate N100 million in an entire year. We must work out a viable plan to avoid financial strain on our local councils.”
To prevent financial insolvency among local governments, Ewhrudjakpo urged them to be proactive in revenue generation. He suggested collecting modest fees from local vendors and transport operators, such as motorbike, boat, and tricycle operators, noting that these fees are legitimate revenue sources.
In response to the NUP’s concerns about unpaid pension gratuities, the deputy governor reassured the group that efforts were underway to settle payments for local government pensioners overlooked in last year’s gratuity disbursement. He also noted that the state’s recently announced N7 billion gratuity fund might be extended to include these pensioners.
Ewhrudjakpo further addressed the issue of pension reviews, stating that any increases would depend on the financial capacity of the local councils, which are largely reliant on federal allocations.
The chairman of the NUP’s local government branch, Noel Itade, expressed gratitude to the state government for approving N7 billion for outstanding gratuities and requested consideration for retirees who were omitted from the previous payment round. He also called for an upward review of pensions to match the economic conditions affecting retirees.
The deputy governor congratulated the newly inaugurated NUP committee and promised to look into their request for an operational vehicle and other assistance to improve their operations.