The Nigeria Employers’ Consultative Association (NECA) has told state governments they have no justification for paying the nationally agreed minimum wage of N70,000, arguing they can afford to pay more.
NECA’s director general, Adewale Smatt-Oyerinde, said increased money coming to states from the national federation account had weakened their argument that they could not afford a higher wage.
He made the comments during an appearance on Channels Television’s programme, The Morning Brief.
“So, no state really has an excuse in the context of the current reality to stay at that 70,000 naira,” Mr Smatt-Oyerinde stated.
He explained that with many Nigerians struggling with high costs for transport, food, and shelter, paying a higher wage was essential. He stressed that the key issue was not the amount itself, but what it could buy.
“Once you deal with that, the conversation would not really be about minimum wage because the quantum of that 70,000 naira will be able to buy enough for an average household. So it’s not about the quantum, it’s about what exactly the 70,000 naira can buy,” the NECA DG stated.
Mr Smatt-Oyerinde said that measures to reduce the financial pressure on workers, who are key drivers of the economy, would ultimately boost their productivity and benefit the states.
“If you are hungry, or if you’re not really composed, you’re hungry, you have issues with shelter, you have issues with transport, hardly would you be productive at work,” he said.
He urged state governments to view their civil servants as the “engine that drives the system” and to address their welfare.
The current national minimum wage law was signed by President Bola Tinubu in July 2024, raising the floor from 30,000 naira to 70,000 naira after lengthy negotiations.
However, several states have already chosen to implement wages above this national minimum. Imo State now pays 104,000 naira, the highest so far. Ebonyi State has set its minimum wage at 90,000 naira, while Lagos State pays 85,000 naira. The governments of Akwa Ibom, Enugu, and Bayelsa states have all announced a new rate of 80,000 naira for their employees. Osun State approved a minimum wage of 75,000 naira.
NECA, which represents private sector employers, stated that its view is that workers are critical to economic growth and should be treated as such.
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