The Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale Oyerinde, has stated that no state government can justify failing to implement the newly approved ₦70,000 minimum wage by citing insufficient funds.
Oyerinde argued that with the federal government’s consistent increase in monthly revenue allocations to states, claims of inadequate funding are no longer tenable.
Speaking during an interview on Arise News on Tuesday, he addressed the implementation of the minimum wage approved by President Bola Tinubu in 2024.
He called on state governments to adopt fiscal discipline in managing their resources to ensure the successful implementation of the new minimum wage.
He stated, “The issue of having funds to pay the 70,000 also doesn’t arise because it is no more hidden that the government itself, the federal government is supporting consistently now, the state government. The federal government’s allocation to state government has increased proportionately. So with a little fiscal discipline, no state should complain that they cannot pay the 70,000 as approved by the president.”
The NECA DG expressed hope that no state government would default in the payment of the new minimum wage, noting that the presentation of the 2025 budgets is an opportunity to factor in the funds for those state which claimed it was not included in their 2024 plans.
“We don’t see the states not paying. We want to believe that it has been factored into their 2025 budget. Those that say it wasn’t in their 2024 budget, most are presenting their budget now or they’ve presented already to their house of assemblies. So we believe probably it’s in their 2025 budget and we hope earnestly that everybody will abide by the 70,000,” he said.
Oyerinde called on the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to take a proactive approach in engaging state governments that may resist implementing the new ₦70,000 minimum wage. He emphasized that non-compliance cannot be justified by claims of insufficient funds.
He reiterated that the new minimum wage is here to stay and urged all stakeholders to ensure its implementation, despite the challenging economic conditions.
“If any state refuses to pay, since funding is no longer an issue, the NLC and TUC may need to intensify their engagement efforts and possibly rethink their strategies to ensure compliance from all states,” he stated.
“The reality is that ₦70,000 is now the standard, and everyone must adhere to it, except those explicitly exempted,” Oyerinde concluded.
