Report Reveals 15 Nigerian States Yet to Implement N30,000 Minimum Wage
A recent BudgIT report titled “State of States, 2023 edition” exposes that 15 states in Nigeria have not implemented the N30,000 minimum wage, which was signed into law in 2019. As discussions on a new minimum wage continue, this report highlights the challenges facing both the government and labor unions.
A new report by BudgIT, titled “State of States, 2023 edition,” has brought to light a significant issue plaguing Nigerian workers. Despite the N30,000 minimum wage being signed into law in 2019, as of 2022, 15 states in the country have yet to implement it.
The report delves into various aspects of fiscal governance, transparency, accountability, and sustainability within sub-national governments in Nigeria. When examining the operating expenses and expenditures of these states, it’s evident that the implementation of the new minimum wage has not been a uniform practice.
Here are some key findings from the report:
- 15 States Lag Behind: The report confirms that nearly four years after the N30,000 minimum wage was signed into law, 15 states have failed to put it into practice.
- Spending Analysis: A broader analysis of expenditure shows that there was a 19.26% increase in cumulative operating expenses of all 36 states, coupled with a 28.54% increase in capital expenditure year-on-year.
- Costs Rise: Despite 15 states not implementing the minimum wage, the cumulative personnel cost of all 36 states grew by 13.44% to N1.75 trillion, up from N1.54 trillion in the previous year. Overheads also surged by 23.42% to N1.24 trillion in 2022.
It’s important to note that the report did not specify which states have failed to honor the minimum wage agreement.
Current Challenges and Future Implications
BudgIT’s findings raise concerns, especially considering the ongoing negotiations between the Federal government and labor unions for a new minimum wage. In light of the removal of fuel subsidies and increased living costs across the country, the Trade Union Congress (TUC) has already demanded a new national minimum wage of N200,000 for workers nationwide.
Widespread protests have erupted in response to the federal government’s perceived inaction regarding the effects of subsidy removal on workers. In response, the President announced a N35,000 wage award to federal government workers on Independence Day, and various states have implemented similar initiatives, albeit as short-term solutions.
As discussions on a revised minimum wage continue, it remains to be seen how many states can afford to meet the demands of a higher minimum wage, especially if it reaches N200,000, as proposed by some labor unions. This issue highlights the complex economic challenges facing both the government and labor unions in Nigeria.