David Umahi
File: David Umahi of Ebonyi State.

Governor David Umahi of Ebonyi State has claimed that the new minimum wage of N30,000 will cause inflation in the country.

The organised labour and the Federal Government had earlier this week reached an agreement on the new minimum wage after threats of strike action.

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Speaking on Wednesday, while inaugurating his campaign organisation, the Divine Mandate Organisation, Umahi said the minimum wage issue is being tackled wrongly.

According to him, “If what we are being told is correct and some states are using up to 90 per cent of their resources to pay salaries, if what we are told is correct that ASUU is going on strike because ASUU is saying that the budget for education is only 7 per cent against 20 per cent.

“So, if you put these two sections together, it is 110 per cent. We are just talking about this section alone- education, other sectors are there, health, security votes, water, light and so on. We are just talking of education and workers’ salaries alone.”

He said that “The two cannot mix; they cannot work until we are able to sit down and think how we can run this country.

“I do not believe that all the resources of this nation are correctly collected.

“I believe that if we collect in honesty the resources of this country, we will have enough to take care of our workers and we will have enough to take care of our health, education and others.

“Civil servants should look beyond minimum wage component. Even the minimum wage of 30,000d what can it do?

“It will cause inflation and that inflation is going to sweep out whatever gain you think you have.

“Till we sit down in this country and look at all sides and agree that this is how we are going to do it otherwise, we will ground this country.”