New Minimum Wage Act: Employers Mandated to Pay N70,000 Minimum Salary

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President Signs Landmark Bill


President Bola Ahmed Tinubu has officially enacted a new Minimum Wage Act, requiring all employers in Nigeria to pay a minimum salary of N70,000. The legislation, passed by the National Assembly last week, took effect immediately after the President’s assent during a brief ceremony at the ninth Federal Executive Council (FEC) meeting at the State House in Abuja.


The ceremony was attended by Senate President Godswill Akpabio and other legislative leaders. President Tinubu expressed gratitude to the National Assembly for their swift passage of the bill, highlighting its significance for Nigerian workers.


Senate President Akpabio emphasized that the new minimum wage applies to all sectors, including federal, state, local governments, private enterprises, and individual employers. He clarified that while N70,000 is the minimum, employers capable of paying more are encouraged to do so. This law guarantees that no Nigerian worker will earn less than the stipulated amount from now on.

The Head of Service of the Federation, Mrs. Folashade Yemi-Esan, welcomed the presidential approval, noting it would alleviate worker unrest. Attorney-General and Minister of Justice, Lateef Fagbemi, called for expedited passage of the 2024 Budget amendment to support the new wage law. He praised the timing of the legislation, stating it significantly enhances workers' welfare.


Finance Minister Wale Edun labeled the event historic and assured rapid implementation of the new minimum wage. He noted that extensive consultations with stakeholders had taken place to ensure compliance.

Minister of State for Labour, Mrs. Nkeiruka Onyejeocha, affirmed the government’s commitment to enforcing the new wage law. She highlighted the inclusive process involving various stakeholders, including governors, local government representatives, and labor unions, that led to the law’s passage. The government is also considering backdating the new wage payments to May 2024.


Senate President Akpabio commended President Tinubu’s dedication to improving workers' conditions, noting the National Assembly's prompt action on the bill. He anticipated the budget amendment's readiness by the following day.


House of Representatives Speaker Tajudeen Abbas, represented by House Leader Prof. Julius Ihonvbere, lauded the President’s commitment to Nigerian workers’ welfare. He highlighted the significant increase from N30,000 to N70,000 and the reduced negotiation period as evidence of the administration’s dedication to national progress.


The Trade Union Congress (TUC), led by President Festus Osifo, praised the new minimum wage law. The TUC urged the National Salaries, Incomes, and Wages Commission (NSIWC) to establish a fair and equitable adjustment template. Osifo called for immediate implementation of the new wage by state and local governments to enhance workers' purchasing power.


This new legislation marks a significant milestone in Nigeria's labor history, promising better living standards for workers nationwide.

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