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BUSINESS

Private employers to face jail time for “Non-Compliance” with new minimum wage-FG

September 19, 2024 • 3 min read

September 19, 2024

By Samuel Ogunsona

The Federal Government of Nigeria has issued a stern warning to private employers to pay their workers the new minimum wage of N70,000 or risk facing jail time.

This was made known by the Permanent Secretary, Federal Ministry of Labour and Employment, Alhaji Ismaila Abubakar, on Wednesday while speaking at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria, held in Ikeja, Lagos.

This directive comes as the Government aims to address the current economic reality and ensure no Nigerian worker, whether in Government or private employment, earns less than the minimum wage.

According to Alhaji Ismaila Abubakar, “The minimum wage is now a law, and as a result, it is a punishable crime for any employer to pay less than N70,000 to any of its workers.

Abubakar emphasized that private employment agencies must make it compulsory in any contract to pay workers the minimum wage.

“The private employment agencies should make it compulsory in any contract they take from their principal that their workers should not earn less than the minimum wage. The least paid worker in Nigeria should earn N70,000, and I think that should be after all deductions.

“The minimum wage is a law, and you can be jailed if you fail to implement it. The Federal Government is committed to ensuring that the least paid worker goes home with N70,000.” He said.

The Government’s commitment to enforcing the minimum wage has sparked discussions among stakeholders.

Dr. Olufemi Ogunlowo, President of the Employers Association for Private Employment Agencies of Nigeria, requested clarification on whether the N70,000 minimum wage is net or gross.

According to Ogunlowo, “As an employers union in the private sector, we are committed to implementing the minimum wage. We are a law-abiding and guided association. Our principals and clients have also keyed into the minimum wage.

“However, the government must clarify whether the N70,000 minimum wage is net or gross. The government and NLC should address all ambiguities in the minimum wage,” he stated.

Funmilayo Sessi, Chairperson of the NLC Lagos State chapter, emphasized the need for strict enforcement of the minimum wage

She said, “The N70,000 isn’t enough in the current economic realities. By the time the consequential adjustment is concluded, all private employment agencies should immediately start paying their workers the N70,000 minimum wage.

“The NLC in Lagos State will see to the strict enforcement of the minimum wage. EAPEAN should avoid confrontation with the NLC on the minimum wage.”