Minimum Wage Competition Rages

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As policies-induced hardship worsens, sub-national governments engage in healthy competition as state governors increase the minimum wage of their civil servants beyond the statutory N70,000

By Lukmon Ojerinde

Some governors of the 36 states of the federation have defied the payment of the statutory N70,000 minimum wage to civil servants in their states, rather these governors in what their admirers refer to as state magnanimity, have preferred to pay civil servants in their respective states above the constitutionally approved sum. As at the time of filing this report, some of the governors have raised their minimum wage payment to as high as between N72,000 and N85,000 in a competitive bid to cater to the basic needs of workers in those states.

The latest governor to enter into the competitive arena of the minimum wage payment is Governor Peter Mbah of Enugu State who on Thursday, October 24, 2024 approved a new minimum wage of N80,000 for Enugu state workers.

The governor announced the approval following the presentation of the report from the committee tasked with the responsibility of reviewing the state’s minimum wage at the Government House, Enugu.

Governor Mbah expressed his administration’s dedication to improving workers’ welfare, while saying, “I am pleased to declare a new minimum wage for the workers of Enugu State. This decision is a testament to our commitment to their well-being, which remains a top priority.”

The governor emphasised that the increase was based on the administration’s belief that labour was a crucial driver of economic prosperity. According to Mr. Mbah, well-compensated workers are key to fostering economic growth and wealth creation in Enugu State.

He charged the workers to reciprocate this gesture with their productivity at work.

On their part, the Organised Labour in the state thanked the governor for the gesture where the state’s minimum wage was above the approved national minimum wage of N70,000.

They also thanked Mr. Mbah for his continued payment of N25,000 wage award to workers for over 10 months while awaiting the harmonisation of the new minimum wage.

Fabian Nwigbo, state chairperson, Nigeria Labour Congress (NLC), said the gesture had affirmed that Mr. Mbah was “the most worker-friendly governor that had ever ruled the state, as he matched his words with action”.

Also speaking, the Chairperson, Association of Local Governments of Nigeria, Enugu Chapter, Sydney Edeh, expressed the hope that the new minimum wage would be implemented too at the 17 local government areas in the state.

In Akwa-Ibom state, Governor Umo Eno also announced a new minimum wage of N80,000 for employees of the State government.

To ensure the smooth implementation of the wage increase, the Governor also established an Implementation Committee with a one-month deadline to finalize how the new wage will be executed.

The committee, chaired by the State’s Head of Civil Service, includes the Accountant General of the State, the State Chairman of the Joint Public Service Negotiating Council, and the State Chairmen of the NLC, Trade Union Congress (TUC), and the Nigeria Union of Local Government Employees (NULGE), among others.

Ini Ememobong, the State Commissioner for Information, confirmed the development in a statement on Wednesday, October 23, 2024 while describing it as “a reflection of the state government’s commitment to improving the welfare of its workforce.”

In Kano State Governor Abba Kabir Yusuf has reaffirmed his commitment to enhance the welfare of civil servants in the state upon receiving the highly anticipated report from the Minimum Wage Committee.

Governor Yusuf expressed strong confidence in the committee’s work, acknowledging their thorough research and wide consultations, adding that the new minimum wage would be announced next week.

The Kano State minimum wage review committee, which is chaired by the Special Adviser to the Governor on State Affairs, Usman Bala, was tasked with reviewing and recommending improvements to the state’s minimum wage structure. Bala expressed confidence that the proposed wage structure would positively impact civil servants’ financial stability.

Governor Yusuf called for patience as the government reviews the recommendations to ensure compliance with constitutional guidelines. This development is a significant step towards improving the lives of Kano State’s civil servants.

Earlier on, the Rivers State government had announced that N85,000 would become the new minimum wage for civil servants in Rivers State. Governor Siminalayi Fubara of Rivers and Babajide Sanwo-Olu of Lagos are now two governors whose states are paying the highest minimum wage to workers in their states.

On Friday, October 18, 2024 Governor Fubara announced the approval of the N85,000 as the new minimum wage. The head of the service of the state, George Nwaeke, announced that the approval was granted by Governor Fubara during a closed-door meeting with labour leaders and senior government officials.

Rivers state announcement came two days after Governor Babajide Sanwo-Olu of Lagos announced the same amount of N85,000 on Wednesday, October 16, 2024. However, Sanwo-Olu further promised that the state was looking forward to increasing the minimum wage to N100,000 by January 2025.

In Kebbi State, the government has equally promised to add N5,000 to the minimum wage to make it up to N75,000. Governor Nasir Idris, has approved the N75,000 as the minimum wage for the lowest-paid civil servant in the state.

Governor Idris signed the state minimum wage edict into law recently at the state house, in the presence of national officials from the Nigeria Labour Congress, NLC, led by President Joe Ajaero.

It is worth noting that Governor Idris played a significant role in the new minimum wage implementation. When most state governors claimed they couldn’t afford the new minimum wage, he stood firm and insisted that state governors could pay the wage.

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