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New minimum wage: Private employers paying below N70,000 risk jail, FG warns

The Federal Government has issued a firm directive to agencies recruiting for the private sector, insisting on full adherence to the newly established N70,000 minimum wage. Any deviation from this mandate, it warns, will not be tolerated, as the new wage structure is critical to addressing Nigeria’s current economic realities.

Emphasizing the significance of this policy, the government declared that no Nigerian worker, whether in the public or private sector, should earn below the stipulated minimum wage. This announcement was made at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN) in Ikeja, Lagos, according to The PUNCH.

Kachollom Daju, the Permanent Secretary of the Ministry of Labour and Employment, conveyed this message through the Director of Employment and Wages, John Nyamali. He stressed, “The minimum wage is now a law, and any employer who fails to pay their workers at least N70,000 will be held accountable. This is a punishable offense.”

He further added, “Private employment agencies must include in their contracts that no worker earns less than N70,000. This amount should be the minimum, even after all deductions. The government is determined to ensure the well-being of Nigerian workers through this law.”

Dr. Olufemi Ogunlowo, President of EAPEAN, voiced the association’s commitment to the minimum wage, but requested clarity on whether the N70,000 is considered gross or net income. He emphasized the need for the government and the Nigeria Labour Congress (NLC) to eliminate ambiguities in the Act.

“As a law-abiding organization, we support the implementation of the minimum wage. Our members are on board with this policy, but we require the government to clarify whether the N70,000 is gross or net, so there are no misunderstandings,” Ogunlowo stated.

Funmilayo Sessi, Chairperson of the NLC’s Lagos State chapter, highlighted the financial struggles faced by Nigerian workers, asserting that the N70,000 wage still falls short of addressing the harsh economic conditions. She urged private sector employers to embrace the new wage structure and warned of strict enforcement.

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“The current economic situation has eroded workers’ purchasing power, making the N70,000 barely sufficient. Private employers must act swiftly to comply, and the NLC will ensure that the minimum wage is enforced without compromise,” she declared.

The Federal Government’s stance on the minimum wage reinforces its commitment to ensuring fair compensation for workers across all sectors of the economy.

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