Minimum Wage: FG issues warning to private employers who pay less than N70k, says they could end up facing jail time

• The Bola Tinubu administration introduced a new minimum wage in Nigeria to address the country’s economic situation, ensuring no Nigerian worker should be paid less than this wage.

• Ismaila Abubakar, Permanent Secretary of the Federal Ministry of Labour and Employment, provided clarification at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria.

• Abubakar’s ministry’s Director of Employment and Wages, John Nyamali, announced that the minimum wage has become a law, making it a punishable crime for employers.

The Federal Government has mandated that private sector recruitment agencies compensate their employees with a minimum salary of N70,000, warning of potential imprisonment for those who fail to comply.

It is important to note that the Bola Tinubu administration introduced this new minimum wage to address the prevailing economic conditions, asserting that no worker in Nigeria, whether in the public or private sector, should receive less than this stipulated amount.

On Wednesday, during the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria held in Lagos State, Ismaila Abubakar, the Permanent Secretary of the Federal Ministry of Labour and Employment, provided further insights.

Abubakar, represented by the ministry’s Director of Employment and Wages, John Nyamali, emphasized, “The minimum wage is now a law, and as a result, it is a punishable crime for any employer to pay less than N70,000 to any of its workers.“

“The private employment agencies should make it compulsory in any contract they take from their principal that their workers should not earn less than the minimum wage. The least paid worker in Nigeria should earn N70,000, and I think that should be after all deductions.

Dr. Olufemi Ogunlowo, President of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN), remarked that any ambiguities within the Act should be addressed and clarified.

He urged the government and the Nigeria Labour Congress to specify whether the N70,000 minimum wage is calculated on a net or gross basis.

Ogunlowo stated that EAPEAN is already committed to upholding the minimum wage, promoting decent employment opportunities for Nigerians, and preventing the exploitation of human resources.

“As an employers union in the private sector, we are committed to implementing the minimum wage. We are a law-abiding and guided association. Our principals and clients have also keyed into the minimum wage.

“However, the government must clarify whether the N70,000 minimum wage is net or gross. The government and NLC should address all ambiguities in the minimum wage,” he stated.

During her address at the event, Funmilayo Sessi, the Chairperson of the NLC, Lagos State Council, remarked that the current economic difficulties have severely undermined the earnings of workers in Nigeria. She urged private employers to guarantee the disbursement of the minimum wage set at N70,000.

She said, “The N70,000 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 N70,000 minimum wage.

“The NLC in Lagos State will see to the strict enforcement of the minimum wage. EAPEAN should avoid confrontation with the NLC on the minimum wage.”