Implementation of N70,000 Minimum Wage Faces Delays in 27 States
Twenty-seven states, along with the Federal Capital Territory, have yet to establish committees for the implementation of the newly approved N70,000 minimum wage.
The states lagging include Plateau, Kebbi, Sokoto, Nasarawa, Bayelsa, Delta, Osun, Ekiti, Zamfara, Benue, Enugu, Taraba, Gombe, Kogi, Adamawa, Niger, Anambra, Imo, Ebonyi, Oyo, Akwa Ibom, Bauchi, Katsina, Kaduna, Cross River, and Yobe.
In contrast, seven states—Kano, Kwara, Ogun, Borno, Jigawa, Ondo, and Abia—have formed implementation committees. Only Lagos and Edo have begun disbursing the new minimum wage.
President Bola Tinubu signed the minimum wage into law on July 29, 2024, following discussions with leaders of local labor organizations.
In Lagos, the Commissioner for Information and Strategy, Gbenga Omotoso, confirmed that the state had been remunerating workers above the minimum wage prior to the law’s enactment, with starting salaries around N77,000.
The Edo State Government has also announced compliance with the updates to the minimum wage.
State Responses to Implementation Committees
Kwara State’s Governor Abdulrahman Abdulrazaq, also the Chairman of the Nigerian Governors Forum, established an 18-member committee to facilitate the new wage’s introduction on August 1, 2024. This committee includes representatives from the government, labor unions, and the private sector.
Kano State has initiated an advisory committee on the minimum wage, while Jigawa created a ten-member committee in early August. The Borno State Government has also formed a 22-member panel, and Ondo State reported that its implementation committee is actively working on the matter.
In Oyo State, a committee was established months prior, consisting of labor stakeholders and government officials to guide the government in executing the minimum wage.
Abia’s Governor, Alex Otti, announced that a committee for the minimum wage was in place even before the federal law was enacted, emphasizing that provisions for salary increases are underway.
Concerns Over Feasibility
However, Gombe State’s Governor Inuwa Yahaya expressed concerns regarding the state’s limited financial resources, suggesting that many states may struggle to implement the new wage. Similarly, Kogi’s Commissioner for Finance conveyed that no timeline had been set for the wage execution.
In contrast, Plateau and Kebbi states indicated intentions to negotiate with labor organizations regarding the new minimum wage. Kebbi’s leadership mentioned discussions would take place to ensure the implementation fulfills civil servants’ needs.
During a recent town hall meeting, Sokoto State Governor Ahmed Aliyu affirmed his state’s readiness to comply with the new wage requirements, acknowledging the broader economic challenges at play.
Plans are reportedly in motion in Nasarawa State for wage commencement, while Bayelsa State has expressed commitment to meeting the federal wage agreement without retracing any past arrears.
Upcoming Committees in Other States
In Osun, the governor’s spokesperson announced that a committee will be formed next week to address the minimum wage’s implementation. Delta State is also working on establishing a similar committee, as indicated by its Commissioner for Information. Governor Hyacinth Alia of Benue asserted his commitment to ensuring the new wage is paid while addressing any inefficiencies in administration.
The landscape surrounding the N70,000 minimum wage reflects the varying responses and readiness of state governments to accommodate this new directive, highlighting the ongoing challenges faced by both workers and government officials in aligning with national labor policies.
