In order to comply with the new National Minimum salary Act, the federal government has asked state governments that have not yet done so to start paying the minimum salary of ₦70,000. President Bola Tinubu met with Secretary to the Government of the Federation, George Akume, who then made this request. The new Minimum Wage was a top priority for Tinubu’s administration, Akume said, praising states that had already begun to pay it. The federal government, state governors, and the organised Private Sector came together to form a tripartite agreement to address the wage issue.
Akume urged states that have not yet adopted the new salary to do so right away, as some have even surpassed the ₦70,000 threshold. In reaction to growing Inflation and the rising Cost Of Living in Nigeria, the administration of President Bola Tinubu implemented a new minimum salary of ₦70,000. The 2019 minimum salary of ₦30,000 was followed by this pay increase. The pay increase decision was made in the face of mounting economic difficulties and labour union requests for higher wages in order to keep up with the skyrocketing prices of necessities.
Some states doubt their capacity to achieve the wage criterion.
Many workers have found it difficult to make ends meet at the old pay, so the government is hoping that the new salary would help them. Based on the information that is currently available, about 18 states in Nigeria have started to implement the ₦70,000 minimum wage, while other governments are still adjusting their budgets to account for the rise. Citing a lack of funding, some states have voiced doubts about their capacity to achieve the wage criterion. About 60% of Nigerian states are thought to have either complied or started the salary payment, while the remaining states are falling behind, however no official percentage breakdown has been given.
Employees in a few states are paid more than ₦70,000, which is over the minimum wage. It is anticipated that Nigerian workers’ lives, especially those of those in the lowest income range, will be greatly improved by the pay hike. The prior ₦30,000 salary was frequently not enough to pay for necessities like food, shelter, and transportation. It is anticipated that workers will have more money to spend after the new ₦70,000 pay, which will enhance their standard of living and strengthen local economies as consumption rises.
Gov’ts that do not comply have cited budgetary limitations.
Nonetheless, there are worries that some state governments would find it difficult to maintain the payment because of their financial problems, which might cause them to postpone wage payments or make changes to other public services. Furthermore, some detractors worry that Inflationary Pressures may result from the wage hike if it is not carefully managed. The Nigerian Labour Congress (NLC) is among the labour groups that have praised the increased wage as a win for workers’ rights. Nevertheless, they continue to exercise caution and call on the federal and state governments to guarantee regular and prompt payment.
More so, in states where the new wage has been implemented, workers have expressed relief and hope that they will be able to afford better living conditions. On the other side, state representatives from states that do not comply have cited budgetary limitations and requested more funding from the federal government to meet the wage requirement. Governors in compliant states, like Lagos and Rivers, have emphasised their attempts to put workers’ Welfare first in spite of financial difficulties.
Related Article: FG Approves ₦70,000 as New Minimum Wage
Although all states are not required to comply by a specific date, the federal government has asked non-compliant states to do so as soon as feasible through George Akume, Secretary to the Government of the Federation. To guarantee a seamless implementation nationwide, the government has also stated that it will keep collaborating with state governors and the organised private sector. It is anticipated that the government will take into account providing financial aid or restructuring public debts in the future to assist people who are having difficulty meeting salary demands.