FG Threatens Jail Term for Private Employers Paying Below N70,000 as States Remain Silent on Minimum Wage

The Federal Government Nigeria has issued a warning to private sector recruitment agencies, urging them to comply with the new N70,000 minimum wage or face legal consequences.

This was made known at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN) held in Ikeja, Lagos, on Wednesday.

Ismaila Abubakar, Permanent Secretary of the Federal Ministry of Labour and Employment, noted the government’s commitment to ensuring that no worker in Nigeria, whether in public or private employment, earned below the newly established minimum wage.

Abubakar, represented by John Nyamali, Director of Employment and Wages, emphasised the legal implications of non-compliance.

“The minimum wage is now a law, and any employer paying less than N70,000 to its workers is committing a punishable crime,” Abubakar stated.

“Private employment agencies must ensure that no worker earns below this wage, even after deductions. Employers can face jail time for non-compliance.”

The new minimum wage is part of the government’s strategy to tackle the economic challenges faced by Nigerian workers due to rising inflation and living costs.

In his response, Dr. Olufemi Ogunlowo, President of EAPEAN, expressed the association’s commitment to enforcing the new wage structure but called for clarification on whether the N70,000 is net or gross.

He urged the government and the Nigeria Labour Congress (NLC) to clear any ambiguities in the new policy.

“As a union, we are committed to implementing the minimum wage and ensuring decent work for Nigerians,” Ogunlowo said. “However, it is important for the government and NLC to clarify if the N70,000 wage is calculated before or after deductions.”

Also speaking at the event, Funmilayo Sessi, Chairperson of the NLC Lagos State Council, reiterated the need for private employers to implement the wage, noting that the current economic situation has eroded the purchasing power of Nigerian workers.

However, according to a report by the Nigeria Labour Congress 15 states are yet to implement the N30,000 minimum wage of 2019, as signed during the President Muhammadu Buhari’s administration.

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