Fifteen states are yet to implement N30,000 minimum wage – Report

A new report from BudgIT reveals that no less than 15 states across the country as of 2022 are yet to implement the N30,000 minimum wage signed into law in 2019.

The report titled “State of States, 2023 edition” looked at fiscal governance, transparency, accountability and sustainability in sub-national governments across Nigeria.

According to the report when dwelling on operating expenses and expenditures of states, it was noted that 15 states across the country have not implemented the new minimum nearly four years after it was signed into law.

The report stated, “A broader look at expenditure revealed that a 19.26% increase in cumulative operating expenses of the 36 states was accompanied by a 28.54% increase in capital expenditure, year-on-year.”

“Although 15 states are yet to implement the minimum wage of N30,000, the cumulative personnel cost of the 36 states grew by 13.44% to N1.75tn from N1.54tn the previous year. Similarly, overheads grew by 23.42% to N1.24tn in 2022.”

However, the report did not mention the specific states failing to honour the minimum wage agreement.

Backstory

BudgIT’s recent report is worrying considering the Federal government and the organised labour unions are currently negotiating a new minimum wage in the wake of the fuel subsidy removal and increase in the cost of living across the country.

Already, the Trade Union Congress (TUC) has demanded a new national minimum wage of N200,000 for workers across the country.

There have been protests across the country by labour unions on the failure of the Federal government to address the effects of subsidy removal on workers across the country.

This made the President on Independence Day approve a N35,000 wage award to federal government workers across the country and various states have implemented similar initiatives albeit for the short term.

It remains to be seen how many states can afford a revised minimum wage of N200,000 if agreed by the federal government.