Your Allocations Have Increased, No Excuse For Failure To Pay ₦70,000 Minimum Wage – NECA Tells State Governors

The Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale Oyerinde, has declared that no state of the federation should use insufficient funds as an excuse not to pay the recently approved new minimum wage of ₦70,000.

He argued that the federal government has consistently increased the monthly revenue to state governments, so claims of inadequate funds are unacceptable.

Naijaonpoint reports Oyerinde made the submission on Tuesday during an interview with Arise News in which he spoke about the implementation of the new minimum wage approved by President Bola Tinubu in 2024.

The NECA boss urged the state governments to employ fiscal discipline in the management of their funds in order to ensure the full implementation of the new minimum wage.

He stated, “The issue of having funds to pay the 70,000 also doesn’t arise because it is no more hidden that the government itself, the federal government is supporting consistently now, the state government. The federal government’s allocation to state government has increased proportionately. So with a little fiscal discipline, no state should complain that they cannot pay the 70,000 as approved by the president.”

The NECA DG expressed hope that no state government would default in the payment of the new minimum wage, noting that the presentation of the 2025 budgets is an opportunity to factor in the funds for those state which claimed it was not included in their 2024 plans.

“We don’t see the states not paying. We want to believe that it has been factored into their 2025 budget. Those that say it wasn’t in their 2024 budget, most are presenting their budget now or they’ve presented already to their house of assemblies. So we believe probably it’s in their 2025 budget and we hope earnestly that everybody will abide by the 70,000,” he said.

NLC, TUC Must Be Proactive

Oyerinde urged the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to be proactive and engage state governments which may be unwilling to comply, noting again that failure to comply can’t be blamed on lack of funds.

He added that the new minimum wage has come to stay, and every stakeholder should play its part in ensuring compliance, even as the economic realities continue to bite harder.

“If they refuse to pay, because capacity is not an issue now, I think the NLC and TUC probably will have to engage more, probably change their strategy for engagement so that they can get all the states to pay.”

“The reality is that ₦70,000 has come to stay, and everybody should align with the law except those exempted,” the NECA boss submitted.