New Minimum Wage Law Comes with Legal Consequences

The Federal Government of Nigeria has issued a strict warning to private employers, mandating them to comply with the recently established N70,000 minimum wage. Employers who fail to meet this requirement could face legal action, including jail terms. This announcement was made during the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN) in Ikeja, Lagos.

Government’s Firm Stance on Wage Compliance

Ismaila Abubakar, the Permanent Secretary of the Federal Ministry of Labour and Employment, emphasized the government’s commitment to ensuring that no worker, whether in public or private employment, earns below the new minimum wage. Abubakar, represented by John Nyamali, Director of Employment and Wages, stressed that paying less than the N70,000 wage is a criminal offence, punishable by law. “Any employer paying below N70,000 is committing a punishable crime,” he warned.

Private Agencies Urged to Enforce New Policy

Abubakar further stated that private employment agencies must ensure compliance, even after deductions. “Employers can face jail time for non-compliance,” he added. This wage hike is part of the government’s broader strategy to mitigate the economic challenges facing Nigerian workers, who are grappling with rising inflation and living costs.

EAPEAN Seeks Clarification on Wage Structure

Dr. Olufemi Ogunlowo, President of EAPEAN, expressed the association’s readiness to implement the wage increase but called for further clarification on whether the N70,000 is net or gross. Ogunlowo urged both the government and the Nigeria Labour Congress (NLC) to clear up this ambiguity, ensuring that all parties are on the same page.

NLC Calls for Immediate Implementation

Funmilayo Sessi, Chairperson of the NLC Lagos State Council, echoed the call for private employers to quickly adopt the new wage structure. She noted that the current economic situation has significantly reduced the purchasing power of Nigerian workers, making the wage increase essential for their well-being.

Some States Yet to Implement Previous Minimum Wage

While the Federal Government pushes for compliance with the N70,000 minimum wage, a report by the Nigeria Labour Congress highlights that 15 states have yet to implement the N30,000 minimum wage, which was signed into law in 2019 during President Muhammadu Buhari’s administration. This delay underscores the ongoing challenges in enforcing wage policies at state levels.

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