Organised Labour Issues warning over Minimum Wage compliance

Organised Labour Issues warning over Minimum Wage compliance

The Organised Labour has issued a stern warning that states failing to implement the federally approved new minimum wage risk inciting significant unrest.

In July, President Bola Tinubu signed the National Minimum Wage of N70,000 into law following extensive negotiations with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).

Three months post-agreement, the NLC has expressed concerns over the uneven progress in implementing the new wage. While some states have made strides, many others are still falling short.

NLC spokesman Benson Upah stated that varying degrees of implementation are evident nationwide.

He highlighted that the consequential wage adjustment—used to calculate increases based on workers’ positions—has created challenges in several areas.

The NLC is calling on state governments to act promptly and fulfill their legal obligations, particularly in light of rising living costs and recent fluctuations in exchange rates.

Upah said: “All the states are at various levels of implementation. At least we know that of Lagos State that has raised its offer from the 70,000 it was paying to N85, 000.

“We know that Ogun is paying N77, 000; Ondo, N73, 000; Kogi State, N72,500; Gombe is paying N71,500.

“The other states such as Delta, Adamawa, Edo, Borno, Ekiti, Cross River, Benue are also paying. Other states have set up committees for implementation.

“Generally, the issue at the moment revolves around the consequential adjustment. That is where I would say we have some slight issues but even then, that would be sorted out, because as you know, this is a law and all the states are expected to obey the law.

“The states have become very rich, as you can see, the FAAC allocation to them has moved up. So, we do not expect any state to act in breach of this law. And besides that, the cost of living has pushed up. The naira has lost considerable value and anybody who says they cannot afford to pay will be causing trouble and trouble they will have.”

Other states expressing their intention to pay the new minimum wage include Rivers, Anambra, Katsina, Ebonyi, Adamawa, Nasarawa, Oyo, Borno, Osun, and Benue.

Joshua Apebo, General Secretary of the Association of Senior Civil Servants of Nigeria (ASCSN), also added that no state has fully implemented the new minimum wage at this time.

He emphasized that while many state governments have publicly announced their plans to comply, actual implementation remains lacking.

He said: “From information available to me, no state government has implemented minimum wage as at the moment.

“What state governments have done is just mere pronouncements on their willingness to pay.

“We are hoping that state governments will pay the minimum wage this month (October). We have noted too that there will be consequential adjustments across the grade levels.

“I do not see any state refusing to pay because it is a law. They were part of the negotiation.

“They were presented at the Governor’s Forum. So they cannot refuse. The new minimum wage commenced in July, so we are expecting that by the time they finish negotiating with their various workers in the states, they will pay with the arrears.”