NECA to Governors: You Can Afford to Pay More Than ₦70,000 Minimum Wage

The Nigeria Employers’ Consultative Association says state governments have no excuse for not paying civil servants more than the new ₦70,000 minimum wage, given the increase in federal allocations and rising living costs.

NECA’s Director General, Adewale Smatt-Oyerinde, made this statement during an interview on Channels Television‘s The Morning Brief.

He said the significant boost in monthly revenue from the Federation Account means governors can no longer claim they can’t afford to meet or exceed the new wage level.

President Bola Tinubu signed the new minimum wage law in July 2024, increasing pay from ₦30,000 to ₦70,000 after months of talks with labor unions, private sector groups, and lawmakers.

Some states have already gone beyond this amount. On August 27, Imo State Governor Hope Uzodimma announced a ₦104,000 minimum wage, while Ebonyi State followed with ₦90,000 for its workers.

Smatt-Oyerinde said these examples prove no state can reasonably claim it can’t afford higher wages.

“No state really has an excuse in the current situation to stay at ₦70,000, especially with people struggling with petrol prices.

While many states are using CNG buses, more needs to be done on food security and housing.

Once those issues are fixed, we won’t really need to talk about minimum wage, because ₦70,000 will be enough for an average household,” he said.

The NECA leader emphasized that workers are crucial to both government and private businesses, warning that low pay hurts productivity.

“If you’re hungry, if you have problems with housing and transport, you can hardly be productive at work.

Anything that improves productivity will increase motivation, especially with the ongoing reforms,” he said.

Smatt-Oyerinde urged governors to see civil servants as the “engine that drives the system” rather than just expenses.

He reminded them of the International Labour Organization’s principle that “workers are not commodities.”