Nigeria

States Race to Meet Minimum Wage Deadline as Oyo Raises GL 17 Salaries by N180,000 

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Nigerian states are preparing to meet the minimum wage deadline, with Oyo State leading the way by increasing salaries of Grade Level 17 workers by N180,000.

Labor organizations in four states and the Federal Capital Territory (FCT) have voiced their confidence that state governments will start implementing the newly approved minimum wage by the end of January.

This comes after the Oyo State Government announced that it has begun paying its workers a minimum wage of N80,000.

In my opinion, Imo, Sokoto, Akwa Ibom, and the FCT are anticipated to implement the new wage structure by month’s end. Conversely, employees in states like Ebonyi and Cross River remain unsure about when their governments will begin disbursing these payments.

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In 2024, several states such as Lagos, Rivers, Edo, Ogun, and Kogi started distributing the new wage; however, others have postponed these payments until 2025.

In July 2024, President Bola Tinubu authorized a minimum wage of N70,000 for employees, including civil servants. He also committed to reviewing the amount every three years. However, despite plans by the Nigeria Labour Congress (NLC) to initiate a strike in December 2024 due to delayed implementation in some states, these efforts collapsed after several NLC state chapters withdrew their support.

Oyo, Imo, Sokoto, Katsina, and Akwa Ibom chose not to participate in the strike. In contrast, Kaduna, Nasarawa, Zamfara, and the FCT confirmed they would take part.

To address increasing worries about payment delays, Minister of Labour and Employment Muhammad Dingyadi assured in December 2024 that numerous states along with the FCT would adopt the new wage structure by January 2025. He highlighted that his ministry was evaluating compliance levels throughout various states.

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Labour Hopeful in Select States

Labour leaders in Imo and Sokoto states are hopeful that their respective governments will honor the commitments to implement the new minimum wage.

In Imo State, Uche Nwigwe, the Chairman of the NLC, mentioned that workers are eagerly anticipating payment despite increasing prices for goods and services.

“We recognize that the prices of goods have increased, but we’re optimistic about the situation. Let’s gather them first, and then we will understand how Imo workers feel regarding our next steps,” Nwigwe stated.

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In a similar vein, Hamisu Hussaini, the Secretary of the NLC in Sokoto, voiced his confidence that the state government is committed to commencing payments by January.

Hussaini explained that following discussions with the state government, the new minimum wage will take effect this month. To facilitate a smooth implementation, the state is currently in the process of verifying its workforce.

In Akwa Ibom State, Governor Umo Eno revealed that starting November 1, 2024, the state’s verified public servants totaling 45,985 will receive a new minimum wage of N80,000. Dominic Abang, chairman of the state Trade Union Congress (TUC), mentioned that workers are eagerly anticipating this payment to help alleviate inflation’s effects.

“We hope the payment will offer essential relief for workers as the cost of living continues to rise,” Abang stated.

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In the FCT, Kabir Abdullahi, Chairman of the Nigeria Union of Local Government Employees, mentioned that area councils were still waiting for allocations from the Federal Government.

“We’re optimistic that the salaries will include arrears in accordance with the agreement. As soon as payments begin, we’ll be able to assess the status of the funds,” Abdullahi mentioned.

In the meantime, the Oyo State Government has made a noteworthy move by starting to pay an N80,000 minimum wage. Commissioner for Information and Orientation Prince Dotun Oyelade stated that on Friday, N12 billion was allocated to honor Governor Seyi Makinde’s commitment to implement this new wage beginning January 1, 2025.

Oyelade mentioned that a consequence of the new wage structure is that employees on Grade Levels one to six now benefit from a minimum pay increase of N50,000, while those on Grade Level 17 have seen their salaries rise by more than N180,000.

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