New Minimum Wage: Fresh battle looms over arrears
As Nigeria’s 36 states gradually adopt the new minimum wage, attention is now turning toward the issue of arrears payments, leaving many workers across different states in anticipation and negotiation mode. With the federal government’s Minimum Wage Act taking effect in July 2024, state governments and organised labour have had varied responses to implementing the wage increase, leading to differing timelines, arrears negotiations, and unresolved pensioner matters.
While some states have embraced the new minimum wage, others are still working out the complexities. Imo, Osun, and Plateau are yet to clarify their positions on the precise amounts they will pay or the start dates for wage adjustments, leaving workers uncertain.
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In Katsina State, for instance, labour representatives are preparing for talks on the arrears of the new wage and its extension to retirees. Comrade Hussain Hamisu, the NLC Chairman in Katsina, revealed that once a government-appointed committee wraps up its work in two weeks, negotiations will commence. Hamisu emphasised the importance of including retirees in these discussions, citing existing circulars on their entitlements.
In Delta State, civil servants are not expecting arrears payments as their NLC branch, led by Comrade Goodluck Ofobrukwu, confirmed that October 1, 2024, was the agreed implementation date for the new wage. The pensioners in Delta have also seen a salary adjustment in line with federal directives.
In Kwara State, the government has prioritised sustaining the new minimum wage over immediate arrears payment, asking to hold off on discussions about back payments. This has led to ongoing debates with organised labour, represented by TUC Chairman Olayinka Onikijipa, who expressed concern that the law stipulates arrears coverage.
In Enugu, the new wage structure has begun without a “consequential adjustment,” which is still being finalised. Imo State labour leaders expect to resolve similar outstanding matters once the governor returns from an international trip. Meanwhile, Abia’s planned October payment was delayed due to a “computation error” but is set to begin this month following a fresh agreement.
Bayelsa State has urged local government areas to step up internal revenue generation to meet the financial demands of the new minimum wage for council workers. Deputy Governor Lawrence Ewhrudjakpo highlighted the necessity of creative revenue collection measures to ensure sustainable payments.
Plateau State’s civil servants are optimistic about receiving their new salaries soon, while Kano’s governor has already approved N71,000 as the new wage. However, in Osun, workers remain in limbo as government-led negotiations drag on without a clear commitment from Governor Ademola Adeleke.
With each state taking unique steps to address arrears, payment timelines, and retiree inclusion, the debate surrounding the new minimum wage underscores the complex financial realities faced by governments and workers alike. As negotiations continue, the resolution of these matters will reflect the evolving dynamics of labour relations and public finance across Nigeria.
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