A WikkiTimes review of the budget performance reports have shown that ten Northern states spent N449 billion on personnel expenditure in 2023.
Personnel expenditures are usually dedicated to cover for workers welfare, especially salaries. Checks also show that states prioritise personnel expenditure in terms of actual releases.
The review comes at a time when there is clamour for increased minimum wage with negotiations between the Nigerian labour and the federal government said to be almost hitting a conclusion.
Clamour for Increased Minimum Wage Puts More Financial Burden on States
Studies show that while states sampled spent over 70% of their budgeted expenditure, there is a general revenue shortage for most states, a development that leads to the states borrowing money.
Although it is unclear how states plan to earn more money to boost revenue without waiting for federal government allocation to pay salaries.
It would be recalled that a report noted that 24 states would not be able to pay salaries without FAAC. An earlier report also noted that states Nasarawa, Plateau failed to pay salaries of some workers for months.
States have pledged their readiness to ensure better welfare package for workers, however, many states still grapple with meeting the financial needs for current wages.
WikkiTimes earlier reported how Northern states face poor internally generated revenue challenge, showing classic case inability to pay own bills, piling up debts and high debt portfolio.
