New Minimum Wage is Law, You Risk Jail Time for Paying Less Than N70,000 to Any Worker— FG Warns Private Employers

The Federal Government has mandated that private employers must adhere to the new minimum wage of N70,000, warning that non-compliance could result in imprisonment.

This directive was issued by the Permanent Secretary of the Federal Ministry of Labour and Employment, Alhaji Ismaila Abubakar, at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria in Ikeja, Lagos.

Represented by Director of Employment and Wages, John Nyamali, Abubakar stressed that it is now illegal for any employer to pay below this threshold. The government aims to ensure that every Nigerian worker, regardless of their employer, earns at least N70,000 after all deductions.

FG Warns Private Employers
[Credit: Punch News]

He stated, “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.”

In his address, Dr. Olufemi Ogunlowo, President of the Employers Association for Private Employment Agencies of Nigeria, called for clarification on whether the minimum wage is considered net or gross, urging the government and the Nigeria Labour Congress (NLC) to address any ambiguities in the law.

“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.

Speaking further in the event, Funmilayo Sessi, Chairperson of the NLC Lagos State Council, highlighted that the current economic conditions make the N70,000 minimum wage inadequate, but affirmed that the NLC will enforce compliance rigorously.

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She noted, “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.”

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