Dr Kayode Ajulo, former National Secretary of Labour Party, has called for a review of the revenue sharing formula to enable state governments implement the N30,000 New Minimum Wage.
Mr Ajulo said in a statement that many states had resorted to debt financing to implement various projects and pay workers’ salaries which had further increased their debt portfolios.
According to him, some states cannot pay the 18 per cent minimum wage because of the existing revenue sharing formula between the federal and other tiers of government.
He said it was quite apparent that most states in the country had huge debt loads with very low revenue generation.
“While debt is soaring, most states apparently depend on more debt to execute any meaningful developmental project.
Mr Ajulo said since independence, the revenue sharing formula had neither been equitable nor efficient.
He noted that the internal revenues generated by each state were largely dependent on civilization, population, infrastructural development and number of foreign investments in the state.