The Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale Oyerinde, has emphasised that no state in Nigeria has an excuse for not paying the recently approved ₦70,000 minimum wage.
Speaking on the matter of delayed implementation of the 70,000 naira minimum wage during an interview with ARISE NEWS on Tuesday, Oyerinde noted that the federal government’s financial support to states has significantly enhanced their revenue streams, making claims of inadequate funds unjustifiable.
According to him, the funds to meet the wage increment are available, and fiscal prudence is key to ensuring that resources are directed appropriately.
He stated, “The issue of having funds to pay the 70,000 also doesn’t arise because it is no more hidden that the government itself, the federal government is supporting consistently now, the state government. The federal government’s allocation to state government has increased proportionately. So with a little fiscal discipline, no state should complain that they cannot pay the 70,000 as approved by the president.”
The NECA DG therefore stressed the importance of compliance with the new minimum wage law, urging states to ensure the provision is included in their 2025 budgets if it was not factored into their 2024 financial plans. He expressed confidence that the budgetary adjustments necessary for implementation have already been made or are underway.
“We don’t see the states not paying. We want to believe that it has been factored into their 2025 budget. Those that say it wasn’t in their 2024 budget, most are presenting their budget now or they’ve presented already to their house of assemblies. So we believe probably it’s in their 2025 budget and we hope earnestly that everybody will abide by the 70,000.”
Addressing potential resistance from state governments, Oyerinde called on the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to adopt proactive strategies to ensure compliance.
He advised, “If they refuse to pay, because capacity is not an issue now, I think the NLC and TUC probably will have to engage more, probably change their strategy for engagement so that they can get all the states to pay.”
While underscoring the necessity of the ₦70,000 minimum wage, Oyerinde acknowledged the prevailing economic challenges, which have raised concerns about the viability of the amount. However, he reiterated that the circumstances surrounding the wage approval necessitate strict adherence to its implementation, urging all stakeholders to uphold their commitments.
Oyerinde concluded by calling for collective accountability among stakeholders, reminding all parties involved in the national minimum wage discussions of their agreement to abide by the president’s directive. “The reality is that ₦70,000 has come to stay, and everybody should align with the law except those exempted,” he stated firmly.
Melissa Enoch
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