Published on 19/09/2024
The Nigerian government has warned private employers of severe penalties, including jail time for not adhering to the new minimum wage of N70,000. This move aims to ensure fair wages and improve workers’ living standards.
The government emphasised that the minimum wage is a law that must be adhered to, and any employer paying less than N70,000 to their workers is committing a punishable offence.
This was disclosed by the Permanent Secretary, Federal Ministry of Labour and Employment, Ismaila Abubakar, on Wednesday, September 18, at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria, in Lagos, according to Punch.
He said the new minimum wage was important given the nation’s economic situation, stressing that no Nigerian worker, whether in public or private sector employment, should receive less than the mandated minimum wage.
“The minimum wage is now a law, and as a result, it is a punishable crime for any employer to pay less than N70,000 to any of its workers.
“The private employment agencies should make it compulsory in any contract they take from their principal that their workers should not earn less than the minimum wage. The least paid worker in Nigeria should earn N70,000, and I think that should be after all deductions.
“The minimum wage is a law, and you can be jailed if you fail to implement it. The Federal Government is committed to ensuring that the least paid worker goes home with N70,000,” Abubakar, who was represented by the Director of Employment and Wages of the ministry, John Nyamali, said.
However, the government’s firm stance on private employers has sparked controversy, especially as some state governments are still grumbling about paying the N30,000 minimum wage that was approved five years ago.
According to a report by BudgIT titled “State of States, 2023 edition”, 15 states were yet to implement the old minimum in 2023 – nearly four years after it was signed into law.
The report also noted that while the 15 states were unable to pay the old minimum wage, the cumulative personnel cost of the 36 states grew by 13.44 per cent, from N1.54 trillion in the previous year to N1.75 trillion.
While the report did not mention the specific states that failed to pay the old minimum wage, Zamfara recently in May 2024, announced that it would begin to reflect the wage in its workers’ remuneration from June 2024.
Meanwhile, some Nigerians argued that while private businesses are being heavily scrutinised, the government has largely turned a blind eye to defaulting state governors.
They also queried the government about state governors who have publicly denounced the new N70,000
“What about the state governors who have refused to pay the initial N30,000 minimum wage and those who have expressly denounced the N70,000 minimum wage?” Eric Esoimeme, a Nigerian wrote on X.
Recall that during the negotiations of the new minimum wage, governors across Nigeria’s 36 states expressed their opposition to the initial proposed N60,000 minimum wage by the federal government.
