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The New Minimum Wage In Nigeria: Which States Have Implemented It?

In July 2024, the Federal Government of Nigeria, under the leadership of President Bola Tinubu, signed a bill into law establishing a new national minimum wage of ₦70,000 per month for civil servants. This landmark decision marked a significant increase from the previous minimum wage of ₦30,000 and was aimed at improving the standard of living for Nigerian workers amid rising inflation and economic challenges. While some states have gone beyond the federal minimum wage, committing to a minimum of ₦77,000, the implementation of this new policy has been uneven across Nigeria's 36 states.

This blog explores the states that have adopted the new minimum wage, those that have pledged to implement it, and the challenges faced by states struggling to meet this obligation.

States That Have Fully Implemented the New Minimum Wage

As of January 2025, several states have fully implemented the new minimum wage of ₦70,000 or even exceeded it by committing to a ₦77,000 minimum wage. These states are often characterized by relatively stable financial conditions and political will to prioritize workers' welfare. Among the early adopters are:

1. Lagos State:

   • Lagos, being Nigeria's economic hub, was among the first to implement the new minimum wage. The state government has not only committed to paying ₦70,000 but has also pledged to explore additional incentives for workers.

2. Rivers State:

   • Known for its substantial oil revenue, Rivers State has implemented the ₦70,000 minimum wage without delays, ensuring timely payment to civil servants.

3. Kaduna State:

   • Kaduna has long been proactive in labor issues. The state government confirmed that workers would receive the new minimum wage in line with federal directives.

4. Ogun State:

   • The Ogun State government has also embraced the new wage policy, demonstrating its commitment to workers’ welfare.

5. Akwa Ibom State:

   • With significant oil revenue, Akwa Ibom has implemented the new wage and has committed to addressing other welfare concerns of public servants.

States Committed to Implementation

Some states have expressed their commitment to implementing the new minimum wage but are still in the process of doing so. These states face financial or administrative hurdles but have reassured workers of their intentions. Examples include:

1. Oyo State:

   • The state government has announced plans to align with the federal minimum wage but is working out modalities to ensure sustainability.

2. Kano State:

   • Kano State has promised to implement the new wage, with the governor stating that the process is underway.

3. Delta State:

   • Delta has committed to the new minimum wage and is currently finalizing its budget to accommodate the wage increase.

4. Enugu State:

   • The government of Enugu has assured workers that the new wage will be implemented soon, pending internal budgetary adjustments.

5. Ekiti State:

   • Ekiti State has pledged to meet the new wage demands, emphasizing its commitment to improving workers’ welfare despite financial constraints.

Challenges Faced by States Yet to Implement

Several states, particularly those with limited internally generated revenue (IGR), have struggled to adopt the new minimum wage. These challenges include:

1. Limited Revenue:

   • States with low IGR, such as Taraba, Yobe, and Zamfara, face difficulties in meeting the increased wage demands.

2. Dependence on Federal Allocations:

   • Many states rely heavily on monthly federal allocations, which may not suffice to cover the increased wage bill.

3. Existing Salary Arrears:

   • Some states are already burdened with unpaid salary arrears, making it harder to implement the new minimum wage.

4. Rising Debt Levels:

   • High debt levels in states like Bayelsa and Kogi have further constrained their ability to adopt the wage increase.

5. Inflationary Pressures:

   • The rising cost of goods and services has made it challenging for states to balance wage increases with other development priorities.

Union Responses and Advocacy

Labor unions, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), have been vocal in advocating for the swift implementation of the new minimum wage. Union leaders have held meetings with state governments, staged protests, and threatened strikes in states lagging behind. Their efforts have been instrumental in ensuring compliance in states like Ogun, Rivers, and Lagos.

Recommendations for Effective Implementation

To ensure the smooth implementation of the new minimum wage across all states, the following measures are recommended:

1. Improved Revenue Generation:

   • States should diversify their economies and enhance IGR through taxation reforms and investments in agriculture, mining, and other sectors.

2. Budgetary Adjustments:

   • Governments should prioritize workers' welfare in their budgets, reallocating funds from less critical areas to cover wage increases.

3. Federal Support:

   • The federal government can provide conditional grants to financially struggling states to support wage implementation.

4. Transparency and Accountability:

   • States should ensure transparency in financial management to build trust with workers and unions.

5. Regular Wage Reviews:

   • Establishing mechanisms for periodic wage reviews can help ensure that salaries keep pace with inflation and economic realities.

Conclusion

The implementation of the new minimum wage of ₦70,000 (and in some cases ₦77,000) represents a significant step toward improving the welfare of Nigerian workers. While states like Lagos, Rivers, and Akwa Ibom have demonstrated leadership in adopting the new wage, others are still navigating financial and administrative hurdles. Continued advocacy by labor unions, combined with innovative revenue generation and federal support, will be crucial in ensuring that all states comply with the new minimum wage policy. By addressing these challenges, Nigeria can create a more equitable and supportive environment for its workforce, fostering economic growth and social stability.