Lagos, Nigeria – September 19, 2024 – The Federal Government of Nigeria, under the administration of President Bola Tinubu, has announced a new minimum salary policy mandating that private sector recruitment agencies must pay employees no less than ₦70,000. The government has warned that failure to adhere to this wage standard could result in imprisonment.

The new regulation, which was unveiled at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN) in Lagos, is designed to address Nigeria’s economic challenges and ensure fair compensation for workers.

Ismaila Abubakar, Permanent Secretary of the Federal Ministry of Labour and Employment, explained that the policy has become law, making it a criminal offense for employers to pay below the stipulated minimum wage. “The minimum wage is now a law, and as a result, it is a punishable crime for any employer to pay less than ₦70,000 to any of its workers,” Abubakar said. He was represented by John Nyamali, Director of Employment and Wages at the Ministry.

Abubakar also emphasized that private employment agencies are required to include this wage standard in all contracts with their clients. “The least paid worker in Nigeria should earn ₦70,000, and this should be after all deductions,” he added.

The announcement has elicited mixed reactions from industry stakeholders. Dr. Olufemi Ogunlowo, President of EAPEAN, expressed support for the minimum wage but called for clarification on whether the wage should be calculated on a net or gross basis. “We are committed to implementing the minimum wage. However, the government must clarify whether ₦70,000 is net or gross,” Ogunlowo stated.

Funmilayo Sessi, Chairperson of the Nigeria Labour Congress (NLC) Lagos State Council, also spoke at the meeting. She acknowledged the current economic difficulties but stressed the importance of enforcing the new wage. “The ₦70,000 isn’t enough in the current economic realities. By the time the consequential adjustment is concluded, all private employment agencies should immediately start paying their workers the ₦70,000 minimum wage,” Sessi urged.

The new minimum wage policy is part of the Tinubu administration’s broader effort to address economic disparities and improve the quality of life for Nigerian workers. The government has pledged to closely monitor compliance and work with private employers and labor organizations to ensure the successful implementation of the policy.

As Nigeria continues to grapple with economic challenges, this policy aims to provide workers with fair compensation and prevent exploitation in the private sector. The enforcement of this minimum wage will be closely watched to ensure that it meets its intended goals of economic equity and improved labor standards.