Economy

Employers’ Group Warns States Against Retaining ₦70,000 Minimum Wage

The Nigeria Employers’ Consultative Association (NECA) has called on state governments to raise civil servants’ wages above the current ₦70,000 minimum, stressing that improved federal revenues eliminate the basis for wage stagnation amid rising living costs.

NECA’s Director-General, Adewale Smatt-Oyerinde, speaking on Channels Television’s The Morning Brief on Tuesday, said higher allocations from the Federation Account mean states can no longer justify holding workers at the ₦70,000 threshold while citizens face escalating food, shelter, and transport expenses.

“No state really has an excuse in the context of the current reality to stay at that ₦70,000, especially with people struggling with the price of petrol. While many states are still doing a lot with the CNG buses, more still needs to be done,” he said.

Smatt-Oyerinde added that wage reviews are not just about nominal figures but about the purchasing power of households. He explained that unless food security, shelter, and transport costs are addressed, the value of ₦70,000 will continue to erode, undermining workers’ welfare and productivity.

NECA emphasised that civil servants remain critical drivers of both the public and private sectors, and neglecting their welfare undermines overall economic output.

“Workers are very key drivers of the economy of any state. Whatever improves productivity will increase motivation, especially within the context of ongoing reforms. If you are hungry or have transport and housing challenges, hardly would you be productive at work,” Smatt-Oyerinde said.

The association urged state governments to treat workers in line with international labour standards, stressing that “workers are not commodities.”

It advised governors to prioritise worker welfare as a strategic investment in governance and economic growth.

The call comes as more states announce wage increases beyond the national minimum. Imo State last week raised its minimum wage to ₦104,000, while Ebonyi State approved ₦90,000 with immediate effect.

The moves are expected to intensify pressure on other states still operating at the ₦70,000 level introduced in July 2024 following the passage of the National Minimum Wage Act by President Bola Tinubu.

NECA noted that sustained wage adjustments are necessary to reflect current inflation realities and maintain worker productivity across the federation.