Private sector employers risk imprisonment for non-compliance with N70,000 minimum wage,FG warns

Business a.m.

The federal  government has issued a strong warning to private employers, stating that failure to comply with the new N70,000 minimum wage could result in imprisonment.

Kachollom Daju, permanent secretary of the ministry of labour and employment, affirmed that the minimum wage of N70,000 is now legally enforceable and that all employers must comply, during the 13th annual general meeting of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN), held recently in Ikeja, Lagos.

Daju, who was represented at the event by John Nyamali, the director of employment and wages, stated:

“The minimum wage is now a law, and as a result, it is a punishable crime for any employer to pay less than N70,000 to any of its workers. Emphasizing the necessity of the updated wage to address current economic conditions, the government asserted that no Nigerian worker, whether in public or private employment, should earn less than this minimum.

“The private employment agencies should make it compulsory in any contract they take from their principal that their workers should not earn less than the minimum wage. The least paid worker in Nigeria should earn N70,000, and I think that should be after all deductions.

“The minimum wage is a law, and you can be jailed if you fail to implement it. The Federal Government is committed to ensuring that the least paid worker goes home with N70,000.” 

Olufemi Ogunlowo, president of the  EAPEAN, in response to the government’s warning, emphased the need for greater clarity surrounding the implementation of the new N70,000 minimum wage.

Ogunlowo specifically requested clarification on whether the wage applies to net or gross pay and urged both the Nigerian government and the Nigeria Labour Congress (NLC) to work together to resolve any ambiguities in the Act to avoid potential confusion and unfair practices.

“We are already committed to the minimum wage and providing decent jobs for Nigerians while preventing the exploitation of human resources,” Ogunlowo said.

Also speaking at the event, Funmilayo Sessi, chairperson of the Lagos State chapter of the  NLC, stressed the significance of the N70,000 minimum wage for workers in Lagos, especially given the current economic climate.

Sessi remarked, “The N70,000 isn’t sufficient in today’s economic realities. Once the consequential adjustment is finalised, all private employment agencies must begin paying their workers the N70,000 minimum wage.” 

The NLC chairperson also underscored the readiness of the NLC to enforce the new minimum wage in Lagos State, urging EAPEAN to avoid any potential conflicts that could arise from the implementation of the new policy.