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States, LGs may go bankrupt over new pay – Uduaghan

By Austin Ogwuda

Asaba – DELTA State Governor, Dr. Emmanuel Uduaghan, has called on the incoming members of the National Assembly to critically look into the issue of revenue allocation from the Federal Government and find  an equitable sharing formula as he expressed worry that new minimum wage might force most states and local government councils into bankruptcy.

He also called on the new National Assembly members to put the issue of gas flaring in the Niger Delta into the front-burner for appropriate solution.

Uduaghan, who was represented by his deputy, Prof. Amos Utuama, stated this on Monday while speaking at the commencement of an induction course for newly-elected National Assembly members in Asaba.

He said: “Let me use this opportunity to call on members of the new National Assembly to look into revenue allocation and come up with a more equitable formula. The present formula is no longer sustainable owing to the recent increase in workers’ minimum wage.

“If something is not done urgently”, he went on, “most states and local governments might go bankrupt under the burden of salaries and wages.

“The incoming National Assembly should also critically examine the issue of continued gas flaring across the Niger Delta.”