The journey towards establishing a new minimum wage in Nigeria began immediately after President Bola Tinubu’s announcement of the removal of the fuel subsidy. During his inaugural speech on May 29, 2023, Tinubu declared that “subsidy is gone,” a move that sparked widespread reactions and the urgent need for economic adjustments, particularly for the working class.
The removal of the subsidy led to a significant increase in the cost of living, prompting labour unions to push for an increase in the national minimum wage to cushion the effects.
Following months of intense negotiations between the federal government and labour leaders, an agreement was reached to raise the minimum wage to N70,000. This figure was recently signed into law, marking a milestone in the government’s efforts to improve the standard of living for millions of workers across the country. The new wage will apply to employers with at least 50 employees, reflecting a broad-based approach aimed at reducing poverty and enhancing workers’ welfare.
However, the implementation of this new minimum wage faces significant challenges. Small businesses, in particular, are struggling to meet the requirements due to their limited financial capacity. Similarly, several state governments are grappling with budget constraints, raising concerns about whether they will be able to comply with the new wage structure. The burden of increased salaries, amidst ongoing economic difficulties, has sparked debates about the sustainability of the policy in some quarters.
Labour unions and advocacy groups have continued to push for the strict enforcement of the new minimum wage, emphasizing that regular adjustments will be necessary to keep up with rising inflation. They argue that the wage increase, while a positive development, must be accompanied by continuous oversight to ensure that all employers comply and that the purchasing power of workers is not eroded by inflation. Without proper enforcement mechanisms, many fear that workers may not fully benefit from the wage rise.
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Despite these concerns, some state governors have already announced their commitment to implementing the new minimum wage, with some offering even higher figures for their workers. This move has been met with widespread approval from labour groups and workers in those states, as it signals a proactive approach towards addressing the economic challenges faced by citizens. Governors who have made such declarations are viewed as setting an example for others to follow, though the practical realities of sustaining these payments remain a subject of debate.
Below is a list of the governors who have recently announced the implementation of wages above the N70,000 minimum wage for workers in their respective states. These leaders are seen as taking bold steps to improve the welfare of their workforce, setting the pace for other state governments to follow in these challenging economic times.
The Nigeria Labour Congress (NLC) and Governor Muhammad Yahaya of the Gombe state government recently reached an agreement to implement N71,000 new minimum wage.
It was learned that the development resulted from intense negotiations between the state government and the workers’ union.
This was a surprising development, as there were concerns that the state would not be able to pay the new minimum wage the federal government had agreed to with the labour leaders.
Ogun state governor Dapo Abiodun recently announced the approval of ₦77,000 as the new minimum wage for workers in the state.
After meeting with the union leaders, the governor announced that the new minimum wage would take effect immediately.
The meeting, led by Tokunbo Talabi, the secretary to the state government, aimed to discuss the implementation of the new minimum wage. Governor Abiodun initiated the meeting to address workers’ welfare.
Ondo state governor, Lucky Aiyedatiwa, has announced the implementation of N73,000 as the new minimum wage for workers in the state.
Aiyedatiwa, the APC candidate in the November 16 governorship election in Ondo, announced the development at the campaign’s flag-off.
The governor highlighted his administration’s achievements in improving the welfare of civil servants. He emphasized that the state government has paid workers’ salaries regularly and provided training opportunities and promotion exercises.
Ahmed Ododo, the governor of Kogi state, was among the sub-governments that recently approved the payment of ₦72,500 minimum wage for workers in the state.
Governor Ododo’s action followed the submission of the Minimum Wage Committee report on Monday, October 7.
The governor also announced that the payment of the newly approved minimum wage would commence in October.
The governor of Lagos state, Babajide Sanwo-Olu, has made a fresh pledge. He announced that the minimum wage for civil servants in the state has been set at N85,000.
Sanwo-Olu said his government will increase the minimum wage of Lagos to N100,000 by January 2025.
The governor made this announcement in an interview with Channels Television on Wednesday, October 16.
Sodiq Lawal is a passionate and dedicated journalist with a knack for uncovering captivating stories in the bustling metropolis of Osun State and Nigeria at large. He has a versatile reporting style, covering a wide range of topics, from politics , campus, and social issues to arts and culture, seeking impact in all facets of the society.
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