Another economic war is about to start in Nigeria. The war will be about Minimum Wage, MW. The states want to renegotiate it, meaning reduce it. Labor also wants to renegotiate it, meaning increase it. Renegotiation seems to be the only point of agreement; it is also the battle ground. On the face of it, one would assume that this is only “a matter of cash”. But, it is more than that. The very existence of states and local governments is threatened by this conflict.

Governor Aregbesola, went on to disclose to the people of the state, and Nigeria, that “Osun State received only N55m from the Federation Account for the month of September 2015.” For a state which had declared a monthly wage bill totaling N2.4 billion, this is not only frightening, it naturally leads to the question: from where will the state raise the funds to fulfill its obligations to its workers and others?

It is unthinkable that wisdom should ever be popular”, Johann Goethe, 1749- 1832, (VANGUARD BOOK OF QUOTATIONS, VBQ, p 275.) “The Chairman Fiscal Responsibility Commission, Chief Victor Murako, has warned of a possible shutdown by some states of the federation in the next six months unless they find creative ways of handling their dwindling allocations from the federation account.” PUNCH, November 24, 2015. You bet they can; and at least two are technically bankrupt now.

NOTE: The first part of this series might create the impression that this is political commentary. Even the Editor was alarmed enough to call me about it. Readers need to understand the reason for the historical summary. Every promise involves two elements, the promise and the entity making the promise. Nigerian political history has demonstrated that political alliances don’t last; and the promises made are never fulfilled. APC is another coalition whose sustainability will determine the fate of the promises made to us. Please read on.

If there is one thing uniting the thirty-six state governors, irrespective of political affiliation, it is the fact that the two bail-out arrangements fashioned out by the Federal Government have not solved the problem. Doctors in the medical field know the phenomenon too well. It is called treating the symptom instead of the cause(s) of a disease. And, like cancer, which starts as a small lump and becomes bigger on life-threatening, economic tumour starts slowly; get bigger; and eventually might lead to economic calamity.