COVID-19: Gombe Suspends New Minimum Wage, Reviews 2020 Budget

BY ADEYEMI AKANJI IN GOMBE – Consequent upon the downturn of global economy as a result of falling prices of crude oil occasioned by the Coronavirus pandemic, the Gombe State Government has announced the immediate suspension of the implementation of the N30,000 new minimum wage.

This is just as the State government has directed its Ministries of Finance, Budget and Economic Planning to as a matter of necessity, commence a downward  review of the 2020 approved Appropriation.

The deputy governor of the State, Dr Manassah Daniel Jatau, who is also Chairman of the implementation committee, announced these while briefing journalists on the state of the economy in Gombe on Saturday. He said that the COVID-19 pandemic is having negative impact on the running of governance.

Jatau, who was flanked by other members of the committee, said that the decision to review the budget and suspend the new minimum wage was due to the current reality on the ground occasioned by the negative effects of the Coronavirus pandemic on the world economy.

He further explained that the decision was reached following a meeting with the standing committee on the payment of the minimum wage held on March 26, adding that the suspension would take effect from the month of March.

Jatau said; “We have directed the Ministry of Finance to review the 2020 budget downward in order to reflect the reduction in the prices of oil in the international market and the subsequent adoption of $30/barrel bench mark by the Federal Government.

“The minimum wage increment and its consequential adjustments adopted by the state has been suspended until a time when the economy of the state improves.”

The deputy governor said that all government appointees will have their salaries reviewed downward to reflect the current reality and as a sacrifice to the state at this trying period.

He assured that while the state government would embark on reducing wastages and create savings for the execution of necessary projects, the Internal Revenue Service would be strengthened to enable it perform better and reduce over reliance on federal allocations.

He called on the people of the state and workers in particular to bear with the government in view of the current pandemic and see government’s action as “sacrifices the citizens should make in these trying times.”

While urging the media to corroborate what was said, the State Chairman of Gombe State Council of the Nigeria Labour Congress (NLC), Comrade Muhammed Adamu Musa called on the workers in the state to remain calm, saying; “the state government has suddenly found itself in a quagmire because in the last federation account allocation, Gombe State lost N800million from its allocation due to fall in oil price.”

Musa also said that the suspension was temporary as the situation would be monitored to ensure that when the economy improves to normal or near normal, the wage payment would re-commence and arrears would be paid from the month of March.