The Federal Government has commenced payment of the newly approved N70,000 minimum wage and its significant adjustments to over 1.2 million civil servants.
According to The PUNCH, the salary payment, signed by the Accountant-General of the Federation, Dr. Oluwatoyin Madein, began on Thursday, September 24, 2024. Civil servants across different levels will receive payments reflecting the new minimum wage this month.
A breakdown of the new salary structure reveals that level one officers will now earn N930,000 annually, with increases for each subsequent grade level. The highest earning civil servants, Grade Level 17, reserved for permanent secretaries, will now receive N6.9 million annually.
Additionally, step increments within each grade level will vary, further adjusting annual earnings.
The new payment structure applies across all government ministries, departments, and agencies, as well as the Armed Forces, Paramilitary, and tertiary institutions. A sum of N334.9 billion will be spent monthly to cover the wage bill, with an estimated N4.019 trillion required annually.
However, despite the new wage, some civil servants have expressed concerns about the inadequacy of the increase in the face of current economic challenges.
Meanwhile, organised labour has called on other organisations to follow the Federal Government’s lead. The NLC and TUC urged all entities to implement the new minimum wage.
In the private sector, concerns have been raised about the feasibility of enforcing the N70,000 minimum wage. Experts argue that while larger companies might comply, smaller businesses may struggle.
Dr. Ikenna Nwosu of the Nigerian Economic Summit Group suggested that enforcing such a wage across all sectors would be difficult without adequate government support.
Despite these challenges, manufacturers have shown support for the wage increase, noting that higher disposable incomes for workers could benefit the economy by increasing consumer spending.
However, they also cautioned that smaller enterprises may need government aid to comply with the new wage structure without risking closures or layoffs.
