The New Minimum Wage Law: Holding Governments Accountable
With President Bola Tinubu signing the new minimum wage law, all tiers of government are now under scrutiny. The agreed minimum wage of N70,000 was supposed to be implemented in April after the previous N30,000 wage expired in 2019.
Despite the low wages in Nigeria, the issue is complex. States claim they cannot afford the new wage, but with the removal of petrol subsidies in May 2023, all three tiers of government have more funds available.
Reports indicate that some states are financially incapable of financing the new minimum wage, while others have failed to implement the 2019 N30,000 minimum wage. The burden of borrowing and lack of revenue generation strategies are putting states in debt.
It is crucial for governments to be transparent and accountable in their spending, cut down on unnecessary expenses, and invest in human capital and infrastructure. By tapping into the abundant mineral resources across the states, governments can generate income and address the challenges surrounding minimum wage payments.
It is time for states to prioritize sustainable economic strategies to ensure a brighter future for generations to come.