The Federal Government has mandated that all private sector employers pay their employees a minimum salary of N70,000, with the threat of jail time for noncompliance.
This directive follows the implementation of the new minimum wage by the Bola Tinubu administration, aimed at addressing current economic challenges. The administration asserts that no worker in Nigeria, whether in government or private employment, should earn less than this minimum wage.
On Wednesday, during the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria in Lagos State, Ismaila Abubakar, the Permanent Secretary of the Federal Ministry of Labour and Employment, provided further details on this regulation.
Abubakar, represented by the Director of Employment and Wages of the ministry, John Nyamali,[/b] emphasized, “The minimum wage is now legally binding, and failing to pay at least N70,000 to any employee is considered a criminal offense.”
Nyamali further urged private employment agencies to ensure that their contracts stipulate that workers should not be paid below the minimum wage, stating, “The minimum wage should be N70,000 after all deductions.”
He added, “The minimum wage is legally enforceable, and there are penalties, including jail time, for those who do not comply. The Federal Government is determined to ensure that the lowest-paid worker receives N70,000.”
Dr. Olufemi Ogunlowo, President of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN), emphasized the need for clarity regarding the minimum wage. He requested that the government and Nigeria Labour Congress (NLC) provide explicit details on whether the N70,000 minimum wage is calculated as net or gross income.
Ogunlowo stated, “EAPEAN is committed to the minimum wage and ensuring fair employment practices. We seek clarification on whether the N70,000 is net or gross to avoid any confusion.”
He added, “Our association is dedicated to implementing the minimum wage and ensuring that all private employment agencies adhere to this standard. However, we need the government to resolve any ambiguities in the Act.”
During the event, Funmilayo Sessi, Chairperson of the NLC Lagos State Council, highlighted the severe economic conditions affecting workers. She called on private employers to comply with the N70,000 minimum wage requirement and avoid any conflicts with the NLC.
Sessi stated, “The N70,000 minimum wage is inadequate given the current economic situation. We urge all private employment agencies to implement the wage immediately after adjustments. The NLC will oversee strict enforcement, and EAPEAN should cooperate to avoid disputes.”