The Federal Government of Nigeria has issued a stern warning to private sector employers, stating that they risk imprisonment for failing to comply with the newly mandated ₦70,000 minimum wage.
This announcement was made by Alhaji Ismaila Abubakar, the Permanent Secretary of the Ministry of Labour and Employment, during the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN).
Represented by John Nyamali, the Director of Employment and Wages, Abubakar emphasized that the minimum wage law is now legally binding across the country.
“The minimum wage is now a law, and as a result, it is a punishable crime for any employer to pay less than ₦70,000 to any of its workers,” Nyamali stated.
The government has made it clear that non-compliance with this law could result in jail time for defaulters.
The ₦70,000 minimum wage is intended to help workers cope with Nigeria’s rising cost of living, which has been exacerbated by inflation and other economic pressures.
This wage increase aims to provide a basic standard of living for employees across various sectors.
Additionally, Nyamali clarified that any deductions from workers’ salaries should not reduce their earnings below the ₦70,000 threshold, ensuring that the minimum wage is the actual take-home pay.
EAPEAN President Dr. Olufemi Ogunlowo expressed support for the new wage law but called for further clarification on whether the ₦70,000 wage is net (after deductions) or gross (before deductions).
“The government and Nigeria Labour Congress (NLC) should address whether the ₦70,000 is net or gross,” Ogunlowo said. Despite this call for clarification, Ogunlowo reaffirmed the association’s commitment to complying with the new wage law and providing decent jobs for Nigerians.
Funmilayo Sessi, Chairperson of the Lagos State chapter of the Nigeria Labour Congress (NLC), voiced her concerns that ₦70,000 might still fall short given the current economic conditions.
Sessi acknowledged that while the increase is an improvement, it remains insufficient given the high costs of living. She urged private employers to comply with the law promptly, stressing that workers should not be left behind during these challenging times.
The ₦70,000 minimum wage is part of the government’s broader strategy to improve the livelihood of Nigerian workers.
However, there are concerns about how this wage increase will be implemented, particularly in the face of Nigeria’s current economic challenges.
The Federal Government has pledged strict enforcement of the new wage law, with significant legal consequences for employers who attempt to evade compliance.
The introduction of this minimum wage law reflects the government’s ongoing efforts to ensure fair compensation for workers and to address the economic hardships faced by many Nigerians.
The Ministry of Labour and Employment will continue to monitor compliance, with labor inspectors and other enforcement officers expected to ensure adherence to the new regulations.
While the minimum wage increase is expected to benefit workers by improving their standard of living, it may pose challenges for employers, particularly small and medium-sized enterprises.
The full impact of the ₦70,000 minimum wage on Nigeria’s workforce and economy will become clearer as the law is implemented and enforced.
