Osinbajo Tasks Governors To Boost IGR For Smooth Implementation of Minimum Wage
Vice President Yemi Osinbajo has called on newly-elected governors to work harder in their respective states to boost Internally Generated Revenue.
He said the new minimum wage will further put pressure on them, adding that the only way out of it was for the governors to be alive to their responsibilities.
Osinbajo spoke in Abuja on Monday at the opening of the Induction of New and Returning Governors at the State House Banquet Hall, Abuja.
The induction was organised by the Nigeria Governors’ Forum.
He asked the governors to cooperate with the Federal Government, adding that there will be no disparity in government dealing with the states on the basis of political affiliation.
According to him, it has always been the tradition for all elected officials in Nigeria to complain about inadequate funds.
“So, we will not be saying anything new if and when we raise those complaints.
“Lagos State, the highest IGR earner, was earning N600m in IGR when minimum wage was increased from N7,500 to N18,000 — about 140 per cent increase.
We are confronted again with the new increase in minimum wage. So, as scripture says, ‘There is nothing new under the sun.’
“We must confront the problem, not merely by hoping that the Federal Government can do more.
“Already, our deficit is close to N2trn, while debt service is somewhere in the order of 54 per cent. States must, in the next few years, earn more in IGR. We must effectively collect VAT and increase our agricultural output, work with the Federal Government to make broadband infrastructure available all over the country.
“So, our young people anywhere in the country can do jobs anywhere in the world from their villages in any corner of Nigeria.
“If a state is charging for right of way from communications companies and is hindering the laying of cables and other broadband infrastructure as an IGR measure, permit me to say that will be penny wise pound foolish.’’