By HEADLINENEWS.NEWS correspondent
Edo State Governor, Godwin Obaseki, has explained the reasons for the increase in the minimum wage of workers in the state from N40,000 to N70,000.
Obaseki said it was due to the recent exchange rate devaluation, economic realities, high food prices, inflation and the desire to make people work better.
Speaking on Channels Television’s Politics Today program on Monday, the governor said his administration felt the pain of the state’s workers and implemented the measure to improve their lives.
He added that the current national economic realities were forces beyond his control, but that he could no longer allow workers to languish in pain and hardship.
Justifying the increase, Obaseki said: “Government and governance is about our people. You cannot say that you are doing well as a government if your people suffer hardship and are unhappy.
“In 2011, when the minimum wage was 18,000, the exchange rate was 150 naira/$. So, according to calculations, workers in Edo State took home $120 a month. When we increased the minimum wage to 40,000 naira in 2022, the exchange rate at that time was 415 naira. So, workers received about $96, which was a discount on what they earned in 2011.
“Even today, with the minimum wage of 70,000 naira, the current exchange rate with more than 1,000 naira pegged their income home at $55, which is less than what they earned two years ago.
“For us in Edo State, we believe the problem is about productivity. Pay people well so they can produce more. Don’t pretend you’re paying them a salary when you know that can’t motivate them to produce more.
“We are never a frivolous State; We looked at our numbers carefully and, as we understood this was going to happen, we took steps to mitigate the situations we find ourselves in today. So, we undertook fundamental reforms to our public services. Reduce our IPP so we don’t buy diesel at the rate people buy diesel to run power at state and government facilities. We moved our operations to a digital platform. Therefore, we do not spend money on office supplies or other costs that we will use to run the government.
“When we take advantage of all our savings, we will have a lot of money to pay the workers,” he added.
Answering questions on the possible increase in general expenses, pensions and gratuities in the 2024 budget, the Edo governor stressed that he would go to the state assembly with the revised budget to accommodate the new development.
He said: “My overall budget this year is about N89 billion while my personal costs are about N65 billion. That is why I want to move more money from general expenses to pay more salaries to people and taxes generated by the state.”
He further maintained that the new development would be sustained because the money was in the budget, adding: “If the federal government imposes something higher, we will look at the economic realities of the state and make the necessary adjustments.”
Earlier today, Obaseki announced that workers will start earning N70,000 at the inauguration of the newly built ultra-modern Labor House secretariat complex for the state unions, along Temboga Road, Ikpoba-Hill, Benin City.
