In an interview with Arise TV, Adewale Oyerinde, Director General of Nigeria Employers’ Consultative Association (NECA) emphasized the need for the state governments to comply with the federal directive regarding Nigeria’s 70,000 Naira minimum wage.
This comes amid growing concerns over Nigeria’s economic difficulties, where inflation, inadequate implementation, and state-level differences have left millions of workers grappling with poor wages.
The latest minimum wage was set into motion in 2024 to ease the harsh effects of inflation and improve the quality of life for the country’s workforce. Despite the directive, the full implementation of this wage remains incomplete, particularly in state-level government offices.
Background
The journey toward the current Nigerian minimum wage has been a long one. The last major wage adjustment took place in 2019, following deliberations between labour unions, the federal government, and other stakeholders.
In April 2019, President Muhammadu Buhari signed the new National Minimum Wage Bill into law, which was to raise the minimum wage from 18,000 Naira to 30,000 Naira.
This increase was welcomed by labour unions, though they pointed out that this figure was still far from meeting the cost of living, especially considering the inflation rate.
However, even with the increase, the economic realities of Nigeria continued to decline.
In 2022, inflation soared to an alarming 18%, affecting the purchasing power of citizens. The cost of basic goods skyrocketed, making it difficult for minimum-wage earners to meet their basic needs.
Given these circumstances, Adewale Oyerinde and many others in the labour movement began advocating for an upward adjustment to the wage. The government eventually agreed to raise the minimum wage to 70,000 Naira in 2024.
Inflation and the Struggle to Keep Up with Living Costs
Adewale Oyerinde pointed out that the economic situation in Nigeria is dire.
The current inflationary trends make it extremely difficult for individuals on the minimum wage to cope. With inflation affecting the prices of essential goods and services, the 70,000 Naira proposed wage increase still falls short of ensuring a decent standard of living.
In light of this, Oyerinde declares that Nigerians should shift their focus toward the state and local governments.
While the federal government has set the directive for a 70,000 Naira minimum wage, the implementation across various states has been patchy.
Many states, particularly in the northern part of Nigeria, continue to fall behind in the payment of the wage, citing financial constraints.
However,, the Director claimed that the allocations to state governments have increased and therefore paying should not be a problem. Yet, the situation persists where state workers are still not earning the agreed minimum, with some states continuing to offer below the specified amount.
Private Sector Compliance: A Contrast in Implementation
The private sector, by contrast, has largely complied with the 70,000 Naira minimum wage law, according to Ayorinde.
Many businesses, especially those operating in urban centres, have taken the lead in meeting the new wage requirements. The companies have acknowledged the need to provide their workers with fair compensation.
While some private sector organizations have complied with the 70,000 Naira minimum wage, state governments are lagging.
Adewale Oyerinde’s critique of the state governments’ resistance is pointed out: “Saying you would only pay 70,000 naira and not above is not legalistic. Those who can pay above 70,000, like in the private sector, have been compliant.”
The Future of Minimum Wage Implementation
Oyerinde raises the argument that the situation should be considered as part of the 2025 budget.
“By factoring the cost of the wage increase into their budget projections, states can ensure that the minimum wage is implemented fully,” he stated.
However, the failure to act leaves millions of citizens at risk of poverty, especially in the context of rising unemployment rates and difficulties in accessing basic services like healthcare, education, and housing.
At the same time, these state governments must be pushed to meet the minimum wage and ensure that they do not underpay or exploit their workforce. As Oyerinde emphasized, Nigerians should focus more on holding them accountable for the effective disbursement and implementation of the wage increase.
