The Federal Government of Nigeria has commenced the payment of the newly approved N70,000 minimum wage for over 1.2 million civil servants. This marks the beginning of an increase in public servants’ salaries, with September 2024 salaries reflecting the adjustment. The wage rise is expected to push the government’s annual wage bill to N4.019 trillion.
The new wage structure covers various cadres within the federal civil service, with the lowest earners (Grade Level 1 officers) now receiving N930,000 annually. The highest earners, Grade Level 17 officers, will receive N6.9 million per annum. These changes follow President Bola Tinubu’s signing of the minimum wage law in July 2024.
Despite the increase, some civil servants and pensioners have expressed dissatisfaction, calling for a further review due to the rising cost of living and fuel prices. Pensioners in the Southwest have urged organized labor to renegotiate the minimum wage to N250,000. Meanwhile, private sector leaders raised concerns about compliance, noting that many small and medium enterprises (SMEs) might struggle to meet the new wage requirements.
The organized labor, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), welcomed the new wage but urged other employers to follow the government’s example. The government has committed to supporting smaller businesses that may face difficulties with the wage increase, promising potential relief or incentives to assist with compliance.