Onome Amuge
The Nigeria Employers’ Consultative Association (NECA) has commended the governments of Imo and Ebonyi States for raising the minimum wage of their workers, describing the move as a pragmatic response to Nigeria’s strained economic climate.
Imo State last month approved a new minimum wage of N104,000 for civil servants, while Ebonyi State announced an increase to N90,000. Both figures are significantly higher than the national benchmark and come amid rising living costs following the federal government’s removal of fuel subsidies and recent structural reforms.
Speaking on Channels Television’s Morning Brief programme on Tuesday, September 2, Adewale-Smatt Oyerinde, NECA’s director-general said the two states had set a standard that others should emulate.
“Workers are the key drivers of the economy. And whatever will increase productivity or drive motivation, especially with the fuel subsidy removal and other reforms carried out, should not be toyed with,” Oyerinde said.
He suggested that the wage increases were made possible by higher allocations from the federation account, prudent resource management, or improved worker productivity. According to him, “states have no excuse not to pay their workers beyond the minimum wage especially in the face of economic realities.”
Oyerinde also cautioned that the revenue windfall from higher federal allocations must be strategically deployed to ensure sustainability. He urged state governments to use the funds not only to raise salaries but also to tackle persistent issues in food security, housing and transportation. Some subnational governments, he noted, had already begun rolling out compressed natural gas (CNG) buses to ease transport costs for public-sector employees.
At the same time, the NECA chief expressed concern about the sharp rise in Internally Generated Revenue (IGR) being recorded by many states, warning that higher collections may have come at the expense of private businesses.
“NECA is indeed worried about the development as this may have resulted in increased taxes on private businesses/employers, thereby negating the federal government’s efforts to reduce tax burden as enunciated in the recently signed tax reform bill,” he said.
Beyond wages, Oyerinde stressed that long-term productivity depends on investments in human capacity development. He called on governors to prioritise training and skills enhancement for their workforce, citing examples from the private sector.
“If you don’t train the workers, you are basically sabotaging yourself as a government,” he argued. “Our expectation is that beyond pooling the fund, or paying minimum wage, the state should make effort in equipping the workers as it is being done in the private sector. By so doing, the context of productivity will meet the context of wage demand,” he added.
NECA itself, Oyerinde noted, has partnered with Microsoft to train Nigerians on artificial intelligence skills, reflecting the growing need for both public and private organisations to align wage policy with workforce development.
