Nigerian governments are vying to implement the 2024 National Minimum salary Act’s ₦70,000 minimum salary by December 1, 2024. The Nigeria Labour Congress (NLC) may go on strike in Katsina, Cross River, and Zamfara if they don’t comply. With Lagos and Rivers states leading the way with ₦85,000 and promised up to ₦100,000 in 2025, 33 states and the Federal Capital Territory (FCT) have already put the policy into effect. Other states offer compensation ranging from ₦70,000 to ₦80,000, with varying degrees of compliance.
After negotiations failed and the state administration was deemed to be slow, Cross River workers staged a two-day warning strike from November 24–26 to compel compliance. When Governor Bassey Otu proposed a ₦40,000 pay, labour groups criticised him for citing financial constraints. The state government has formed a Negotiation committee and says it is trying to fulfil the national deadline. There are still conversations going on, and the committee that was established in October to implement the new salary in Katsina has not yet finalised its recommendations.
Zamfara, Katsina, and Cross River blame budgetary limitations.
A committee has been formed by Zamfara to determine the final workforce size and financial ramifications, and the company says it is prepared to execute the salary. Governor Dauda Lawal mentioned earlier steps taken to address pay and Pension difficulties in order to reassure civil staff of his dedication to their well-being. States like Zamfara, Katsina, and Cross River cite budgetary limitations as the main cause of their postponement of enacting the ₦70,000 minimum wage. For example, Cross River’s low internally generated Revenue (IGR) makes it mostly dependent on federal allocations.
According to reports, its IGR in 2023 was approximately ₦20.5 billion, which is much less than the monthly amount needed to pay public service salaries. A higher minimum salary was unsustainable due to the state’s low GDP and heavy debt load, according to Governor Bassey Otu, who earlier fixed it at ₦40,000. Zamfara, who inherited a debt of ₦13 billion, faces similar issues to Katsina, devoting approximately ₦5 billion each month to Salaries while managing historical pension liabilities.
States are not immediately given additional funding to advance wage.
These states’ civil officials are disappointed and frustrated at the financial situation. At a wage bargaining meeting in Cross River, workers left, claiming the government was using delay tactics and not putting their Welfare first. Similar to their colleagues in wealthier states, Zamfara workers feel deceived by the lack of advancement in wage implementation, particularly given that they already get larger sums. Lagos, Rivers, and Akwa Ibom are among the states that have exceeded the Minimum Wage threshold, with Lagos paying up to ₦85,000.
Higher IGR and prudent budgetary management are advantageous to these states. Lagos State, for instance, was able to increase its funding for civil sector salaries in 2023 after generating over ₦600 billion in IGR. In a similar vein, Rivers and Akwa Ibom use oil profits and improved budgetary control to improve social programs and provide on-time worker payments. Although the minimum wage is mandated by the federal government, states are not immediately given additional funding to execute it. To close the budget shortfalls, some states, however, want federal assistance in the form of grants, higher funding, or debt forgiveness.
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Additionally, states with weaker economies find it difficult to comply with national policies without such assistance. In order to overcome the difficulties in paying wages, noncompliant states should concentrate on raising IGR through investment, diversification, and improved Tax collecting methods. Federal assistance could also be available as Promoting economic stabilisation funds or conditional grants could offer instant assistance. Reduced payroll Fraud and cost-cutting measures in governance may also free up funds for salaries. Another way to reduce conflicts with labour unions is through transparent agreements and progressive implementation.