Governors Express Challenges in Implementing N70,000 Wage
Following President Bola Tinubu’s enactment of the N70,000 minimum wage, at least two Nigerian state governors have voiced their struggles with implementing the new wage due to financial limitations.
Governors’ Stances:
Inuwa Yahaya (Gombe State):
Gombe State Governor Inuwa Yahaya has declared that his administration cannot sustain the new N70,000 minimum wage due to insufficient federal allocations.
Yahaya, who also chairs the Northern Governors Forum, noted that even the previous N30,000 minimum wage was challenging to implement, and the increased wage might be beyond the capacity of many states despite recent federal funding increases.
Abdullahi Sule (Nasarawa State):
Nasarawa State Governor Abdullahi Sule has announced a delay in the wage implementation until 2026.
Initially, Sule had promised to commence the new wage this month, covering arrears for previous months. However, he cited the need to address outstanding promotions, which requires approximately N200 million, thus delaying the wage increase. He explained that the combined cost of promotions and the wage hike exceeds the state’s financial capacity.
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Ahmed Usman Ododo (Kogi State):
Kogi State Governor Ahmed Usman Ododo has yet to make a definitive decision on implementing the N70,000 minimum wage. Kogi’s finance commissioner, Ashiwaju Ashiru Idris, indicated that no implementation date has been set.
Private Sector Concerns:
Organised Private Sector (OPS):
The OPS has also expressed difficulties in meeting the new minimum wage without additional support. Adewale-Smatt Oyerinde, spokesperson for the Nigeria Employers’ Consultative Association (NECA), highlighted the financial strain on businesses to comply with the new wage structure.
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Nigeria Labour Congress (NLC) Response:
NLC Lagos State:
The NLC has clarified that the existing N35,000 wage award is separate from the newly prescribed N70,000 minimum wage. Funmi Sessi, NLC Lagos State chairman, called for a revised wage structure that appropriately reflects different worker categories and salary grades.
This situation underscores the financial challenges faced by various states and sectors in adapting to the new minimum wage policy.
