The Nigeria Employers’ Consultative Association (NECA) has declared that state governments have run out of excuses not to pay civil servants above the recently approved ₦70,000 minimum wage, stressing that rising federal allocations and ongoing economic realities demand better welfare packages for workers.
NECA’s Director-General, Adewale Smatt-Oyerinde, made this position clear during an interview on Channels Television’s The Morning Brief on Tuesday. He noted that the continuous rise in the cost of living, compounded by high fuel prices and inflationary pressures, had made it imperative for governments to go beyond the bare minimum.
According to him, the improved inflow of revenue from the Federation Account Allocation Committee (FAAC) has significantly weakened the arguments previously advanced by state governments about their inability to implement wage increases.
“So, no state really has an excuse in the context of the current reality to stay at ₦70,000, especially with people struggling with the price of petrol,” Smatt-Oyerinde said. “While many states are still doing a lot with the CNG buses, more still needs to be done. A lot still needs to be done in the context of food security and shelter. Once you deal with that, the conversation would not really be about minimum wage, because the quantum of that ₦70,000 will be able to buy enough for an average household. So, it’s not about the quantum, it’s about what exactly the ₦70,000 can buy.”
President Bola Tinubu signed the new minimum wage bill into law in July 2024, raising the wage floor from ₦30,000 to ₦70,000. The move came after months of heated deliberations involving labour unions, the federal and state governments, as well as representatives of the private sector. The signing at the State House in Abuja marked the first upward wage review in five years, following the passage of the Minimum Wage Act 2019.
However, while the law set a new national benchmark, some states have since gone further to introduce more generous packages for their workers. On August 27, Imo State Governor Hope Uzodimma approved an increase to ₦104,000, describing it as part of efforts to cushion the effects of economic hardship on families. Just a day later, Ebonyi State also raised its minimum wage to ₦90,000, with immediate effect for all civil and public servants.
Workers as the “Engine of the Economy”
Smatt-Oyerinde emphasised that ensuring workers’ welfare should not be treated as a burden, but rather as an investment in productivity and stability. He explained that both public and private sector employees form the backbone of Nigeria’s economy, and that their motivation directly affects national growth.
“Whatever will improve productivity will increase motivation, especially within the context of ongoing reforms,” he said. “If you are hungry, or if you’re not really composed, if you have issues with shelter and transport, hardly would you be productive at work. It is therefore in the best interest of state governments to view the civil service as the engine that drives the system.”
He also referenced the International Labour Organization (ILO), which insists that workers are not commodities but assets that must be treated with dignity and fairness.
While welcoming steps taken by some governors, Smatt-Oyerinde argued that more must be done beyond wage increments. He called for sustainable reforms that would address food security, affordable housing, and reliable transportation. According to him, if basic needs are met, wage debates would become less contentious, as workers would be able to live comfortably within the earnings provided.
Smatt-Oyerinde also advised states to prioritise long-term solutions over short-term excuses, urging them to emulate states that have taken bold steps in increasing the minimum wage beyond the federal benchmark.
“Civil servants are not just numbers on a payroll, they are the people who oil the machinery of governance,” he said. “The private sector sees workers as critical to productivity and growth, and that is the perspective state governments must also adopt.”
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