Seventeen States Establish Committees for New Minimum Wage Implementation
Abuja, Nigeria – Seventeen states across the country have set up committees to oversee the implementation of the newly approved national minimum wage. The states include Ogun, Ekiti, Sokoto, Kebbi, Osun, Enugu, Borno, Zamfara, Kogi, Kwara, Gombe, Kano, Taraba, Delta, Rivers, Jigawa, and Abia.
This development follows the Federal Government’s commencement of the new minimum wage payments to its 1.2 million workers last Thursday. The Accountant General of the Federation, Oluwatoyin Madein, confirmed in a memo to the Budget Office that payments would be retroactive from September.
In response, states such as Edo, Lagos, and Adamawa have begun paying the new wage, while Anambra has pledged to commence implementation in October. Adamawa, notably, started paying ahead of the Federal Government, with Governor Ahmadu Fintiri disbursing the new wage in August.
Early Compliance in Adamawa
In Adamawa, the Chairman of the Nigeria Labour Congress (NLC), Emmanuel Fashe, confirmed that Governor Fintiri began paying the new wage to state workers in August, just weeks after President Bola Tinubu signed the minimum wage bill into law in July. While state workers received their payments promptly, local government employees experienced a slight delay, receiving theirs in September.
Fashe attributed the delay to necessary updates in the payroll system, noting that the 2019 consequential adjustment template was used to calculate the new wage percentages. The state’s accountant general’s office had to make adjustments to reflect the new figures for the August payroll.
“The delay for the local government workers was due to the recalibration of the payroll system, but payments have now been made in full,” Fashe said.
Anambra Set to Follow in October
In Anambra, Governor Chukwuma Soludo announced plans to begin paying the N70,000 minimum wage starting in October 2024. Speaking at an event at the Prof. Dora Akunyili Women’s Development Centre, Soludo also unveiled a new free education policy for senior students in all public schools across the state.
“From next month, we aim to start paying the new minimum wage of N70,000. In addition, senior students in public schools will benefit from a free education policy, effective immediately,” the governor said.
Soludo emphasized his administration’s commitment to fiscal responsibility, pointing out that, despite approval to borrow ₦100 billion, his government had yet to take any loans.
NLC Raises Concerns Over Wage Erosion
Meanwhile, an unnamed senior official of the NLC expressed concerns about the real value of the new minimum wage, criticizing the policies that have, in effect, eroded its purchasing power. The official argued that while the new wage was a step forward, the rising cost of living, particularly the skyrocketing prices of essential goods such as petrol and rice, had severely diminished its impact.
“A bag of rice now costs nearly ₦88,000. When a minimum wage cannot even buy a bag of rice, it’s a starvation wage,” the official remarked, questioning the government’s decision to backdate the implementation to July instead of May.
The official further urged state governors to fulfill their legal obligations, calling out those claiming an inability to pay as “lawbreakers.”
Mixed Reactions from State Governments
Several state governments have already expressed their readiness to comply with the new wage, with some setting up implementation committees.
- Imo State: NLC Chairman Uche Chigamezu revealed that the Imo State government has shown a strong commitment to paying the new wage. Discussions with the government are set to begin soon.
- Nasarawa State: The Senior Special Assistant to Governor Abdullahi Sule on Public Affairs, Peter Ahemba, confirmed that the governor intends to follow the Federal Government’s lead on the new wage.
- Ogun State: Governor Dapo Abiodun’s Special Adviser on Information, Mr. Kayode Akinmade, indicated that the state is awaiting the report of its implementation committee.
- Ondo State: Governor Lucky Aiyedatiwa has affirmed that the state is ready to begin payments soon, although the law still needs to be domesticated.
- Sokoto and Kebbi States: Both states have also assured their workers that plans to implement the new wage are underway, with Governor Ahmed Aliyu of Sokoto pledging to begin payment soon.
- Kano State: A committee set up by Governor Abba Yusuf has already completed its report and is expected to submit it shortly.
Governors Under Scrutiny
State governors who have not yet taken decisive steps towards implementing the new wage are facing growing pressure from labour unions. The NLC continues to push for swift action, emphasizing the urgency given the current economic realities. While some states, like Delta and Bayelsa, are still in the planning stages, others like Benue have yet to take any visible steps.
In Benue, for example, workers remain hopeful despite the absence of an implementation committee. Governor Hyacinth Alia has consistently promised to pay the new minimum wage but has yet to set up a formal mechanism for doing so.
As the nation continues to navigate the complexities of wage adjustments in the face of inflation, all eyes remain on the remaining states to see how quickly they will align with federal directives