The Federal Government of Nigeria has begun the payment of a new minimum wage of N70,000 to over 1.2 million civil servants, starting from September. This development follows months of negotiations and a directive signed by the Accountant-General of the Federation. The payment includes consequential adjustments based on civil service grades.
Public servants on lower grades will now earn between N930,000 and N1,806,041 per annum, while senior officials can receive up to N6,918,560 annually. The government requires over N334 billion per month to meet the new wage bill, translating to an annual expenditure of N4.019 trillion.
Despite this increase, some civil servants and pensioners have voiced concerns, arguing that the increment is insufficient considering the economic hardships. Pensioners, particularly in the Southwest, have called for a renegotiation to increase the minimum wage to N250,000 monthly.
The organized private sector has raised concerns over threats of imprisonment for private companies failing to comply with the new wage structure, arguing that compliance under current economic conditions is challenging, particularly for small and medium-sized enterprises (SMEs). They stress the need for government support to help businesses manage the increased wage burden.
Meanwhile, manufacturing leaders assert that many in their sector already pay above the new minimum wage but acknowledge that smaller businesses might struggle without government aid. They emphasize that higher disposable incomes from increased wages could benefit the economy by boosting consumer spending.
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