20240919 183910

FG Warns: Employers Paying Below ₦70,000 Minimum Wage Face Jail Time

The Federal Government has issued a firm directive to private recruitment agencies, reminding them of the legal obligation to adhere to the N70,000 minimum wage, stressing that any failure to comply will result in serious consequences.

Speaking at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria in Ikeja, Lagos, the Permanent Secretary of the Ministry of Labour and Employment, Alhaji Ismaila Abubakar, reiterated the government’s position.

Abubakar, represented by the Director of Employment and Wages, John Nyamali, emphasized that the N70,000 wage floor is now enshrined in law and must be upheld across all employment sectors, whether public or private.

“The minimum wage is now a law, and it is a crime for any employer to pay less than N70,000 to their workers. Non-compliance will lead to prosecution and possible jail time,” Nyamali warned.

The government’s insistence on enforcing the new wage structure comes in response to rising concerns about the economic realities faced by Nigerian workers.

According to the Federal Government, this new wage benchmark aims to cushion the impact of the country’s current economic challenges.

Private employment agencies were urged to incorporate the minimum wage into contracts with their clients, ensuring that all employees, regardless of their sector, receive no less than N70,000.

“The least paid worker in Nigeria should take home N70,000 after all deductions,” Nyamali stated, underscoring the government’s commitment to ensuring wage fairness.

However, the President of the Employers Association, Dr Olufemi Ogunlowo, raised a critical question about the specifics of the wage law. Ogunlowo called on the government and the Nigeria Labour Congress to clarify whether the minimum wage is to be interpreted as net or gross income.

He emphasized that any ambiguity in the legislation could hinder smooth implementation and called for further explanations to avoid confusion among employers and employees alike.

As the government continues its push for full implementation of the new wage law, it remains to be seen how private sector employers will adjust their payrolls to comply with the updated standards.