Governors Paying Above the N70,000 Minimum Wage: A Progressive Step Amid Rising Living Costs

By: Amaechi Okoro

The issue of minimum wage has always been central to labor discussions and government policies in Nigeria. Following the approval of a N70,000 minimum wage by President Bola Tinubu on July 18, 2024, some state governors have gone a step further, approving even higher amounts for civil servants.

This move comes against the backdrop of economic realities, such as escalating prices of essential commodities, fuel, and transportation, which have significantly impacted the purchasing power of the average Nigerian worker.

The importance of a living wage cannot be overstated. It directly correlates with the standard of living and the ability of workers to meet their basic needs.

In recent years, inflation in Nigeria has driven up the cost of food, housing, healthcare, and education. Staple food items such as rice, garri, beans, and bread have seen a sharp increase in prices, leaving many families struggling to survive.

The introduction of a higher minimum wage is thus a vital policy tool to mitigate the effects of rising costs and improve the welfare of the workforce.

Governors Setting a New Standard

1. Babajide Sanwo-Olu (Lagos State): N85,000

Lagos State Governor Babajide Sanwo-Olu set the bar high by announcing a new minimum wage of N85,000 on October 16, 2024. Acknowledging the high cost of living in Lagos, Sanwo-Olu also expressed a commitment to further raise the wage to N100,000 by January 2025. This increase aims to provide some relief for workers facing exorbitant housing and transportation costs in Nigeria’s commercial hub.

2. Siminalayi Fubara (Rivers State): N85,000

Rivers State Governor Siminalayi Fubara followed suit on October 18, 2024, with a similar commitment to pay N85,000. This policy reflects Rivers State’s robust financial capacity due to its oil-rich economy and underscores the governor’s focus on improving workers’ welfare.

3. Peter Mbah (Enugu State): N80,000

Governor Peter Mbah of Enugu State approved a new minimum wage of N80,000, emphasizing his administration’s dedication to workers’ welfare. This decision came after a thorough review by a committee tasked with addressing minimum wage issues, showing a structured approach to worker compensation.

4. Umo Eno (Akwa Ibom State): N80,000

On October 18, 2024, Governor Umo Eno of Akwa Ibom announced a similar increment, setting the state’s minimum wage at N80,000. The state also established an implementation committee to ensure timely and effective adoption of the new policy.

5. Mohammed Bago (Niger State): N80,000

Niger State joined the league of states paying higher wages when Governor Mohammed Bago approved an N80,000 minimum wage effective November 2024. This decision followed extensive negotiations with labor unions and reflects the state’s commitment to its workforce.

6. Douye Diri (Bayelsa State): N80,000

Governor Douye Diri of Bayelsa announced an N80,000 minimum wage, effective November 2024, while also addressing pensioners’ needs by increasing their monthly payments and allocating N7 billion for gratuities. This comprehensive approach highlights the administration’s effort to cater to both current workers and retirees.

7. Seyi Makinde (Oyo State): N80,000

Governor Seyi Makinde approved N80,000 as the minimum wage for civil servants on November 7, 2024. A technical committee is finalizing the consequential adjustments to ensure a seamless transition.

8. Sheriff Oborevwori (Delta State): N77,500

Delta State, under Governor Sheriff Oborevwori, opted for a minimum wage of N77,500. This decision was reached after discussions with organized labor unions and reflects the state’s financial capability to sustain a wage above the federal benchmark.

9. Dapo Abiodun (Ogun State): N77,000

Ogun State Governor Dapo Abiodun approved N77,000, citing the need to cushion the effects of inflation and rising living costs on civil servants.

10. Francis Nwifuru (Ebonyi State): N75,000

Governor Francis Nwifuru of Ebonyi State announced an N75,000 minimum wage on October 27, 2024, emphasizing the administration’s awareness of the economic challenges facing workers.

11. Ademola Adeleke (Osun State): N75,000

Governor Ademola Adeleke of Osun State joined other governors by approving an N75,000 minimum wage, following recommendations from the Public Service Negotiation Committee.

12. Nasir Idris (Kebbi State): N75,000

Kebbi State Governor Nasir Idris approved N75,000 as the minimum wage on October 23, 2024, demonstrating the administration’s responsiveness to workers’ needs.

13. Ahmed Ododo (Kogi State): N72,500

Governor Ahmed Ododo of Kogi State not only approved a new minimum wage of N72,500 but also suspended taxes on the amount for a year, providing additional relief to workers.

14. Uba Sani (Kaduna State): N72,000

In Kaduna State, Governor Uba Sani approved N72,000 as the minimum wage effective November 2024, highlighting his administration’s commitment to improving living conditions for civil servants.

15. Muhammad Yahaya (Gombe State): N71,500

Governor Muhammad Yahaya of Gombe State signed an agreement with labor unions to pay N71,500, showing a collaborative effort to support workers despite limited resources.

16. Abba Yusuf (Kano State): N71,000

Kano State Governor Abba Yusuf approved N71,000 for civil servants, emphasizing timely implementation starting November 2024.

17. Lucky Aiyedatiwa (Ondo State): N73,000

Ahead of the November 16 governorship election, Governor Lucky Aiyedatiwa announced an N73,000 minimum wage, reflecting his commitment to workers’ welfare as part of his campaign promises.

18. Abdullahi Sule (Nasarawa State): N70,500

Governor Abdullahi Sule clarified that Nasarawa State is already paying N70,500 as the minimum wage. While slightly above the federal benchmark, the governor noted challenges in fulfilling demands for consequential adjustments due to resource constraints.

The new minimum wages, especially those exceeding N70,000, have far-reaching implications for workers and the economy. On one hand, they promise to alleviate some of the financial pressures faced by workers due to inflation. On the other hand, higher wages could potentially drive up consumer spending, stimulating local economies.

However, without corresponding efforts to stabilize food prices, the benefits of these increments might be eroded. For instance, a bag of rice, which once sold for N25,000, now costs over N100,000 in many markets. Similarly, the price of garri, a staple for many Nigerian households, has doubled in recent years. While the wage increase is a step in the right direction, its true impact will depend on broader economic policies aimed at controlling inflation and boosting agricultural productivity.

The decision by some governors to pay above the N70,000 minimum wage is commendable, reflecting a proactive approach to addressing the economic challenges faced by civil servants. While the increments provide short-term relief, long-term solutions must include measures to stabilize prices, enhance job security, and ensure sustainable economic growth. For now, these states set a benchmark for others to follow, fostering hope for improved worker welfare across Nigeria.

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