The governor of Edo state, Godwin Obaseki has explained why he increased the minimum wage to #70,000
In an interview with Seun on Channel TV on Monday, 29 April 2024 discussed why he increased the minimum wage when asked by Seun
“Let us understand this new minimum wage calculation. In 2011, when the minimum wage was N18,000, the exchange rate was N160/$, so effectively, Edo State workers were taking home about $120 as minimum wage. When we increased the minimum wage to N40,000 in 2022, the exchange rate at that time was N450/$ so effectively, workers were getting about $96,” he said on Monday’s edition of Channels Television’s Politics Today.
“Today, 2024, with the N70,000 minimum wage at the current exchange rate of N1,257/$, they are taking home $55, which is less than 50 percent of what they were earning about a year ago.
“For us in Edo State, we believe that the issue is about productivity; paying people well so that they can produce more and not pretending that you are paying them some salary when you know that that salary cannot motivate them to produce the goods and services that you require.”
Since the Federal Government removed fuel subsidy, the cost of the product has more than tripled. The floating of the nation’s currency later further compounded the country’s economic woes, leaving the cost of living hitting the rooftops.
Inflation figures have reached 33.20 per cent, marking a 28-year high.
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But to cushion the impacts of the harsh economy, Obaseki said his government had to introduce the new minimum wage for workers in Edo State.
“We are taking measures as a state to mitigate the situation that we found ourselves in today,” Obaseki said.
He said with the digitisation of work in the state, his government has been able to save money which will be plowed back to other areas including the payment of wages.
“So, we don’t spend [so much] money on stationery and all those costs used to run the government,” the governor said, adding that the state has also reduced the cost of energy by looking at alternative sources.