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Private Employers Paying Below N70,000 Minimum Wage Risk Jail – FG Warns

The Federal Government has issued a stern warning to private sector employers, emphasizing that paying workers less than the newly established N70,000 minimum wage will result in legal consequences, including possible imprisonment.

Speaking at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN) in Ikeja, Lagos, on Wednesday, the Permanent Secretary of the Federal Ministry of Labour and Employment, Alhaji Ismaila Abubakar, made it clear that the new minimum wage law must be enforced across both public and private sectors. Abubakar, represented by the Director of Employment and Wages, John Nyamali, stressed that paying workers less than N70,000 is now a criminal offense.

“The N70,000 minimum wage is now a law, and it is a punishable crime for any employer to pay their workers less than this amount. Private employment agencies must ensure that any contracts they manage include provisions for paying the minimum wage,” Abubakar stated. He added, “The Federal Government is committed to ensuring that no worker earns less than N70,000, even after all deductions.”

The new wage policy is seen as a necessary step in addressing the rising cost of living and economic challenges faced by workers across Nigeria.

During the meeting, the President of EAPEAN, Dr. Olufemi Ogunlowo, requested clarification from the government and the Nigeria Labour Congress (NLC) regarding whether the N70,000 wage is meant to be gross or net. He emphasized that private employers are committed to the minimum wage but need clear guidance to avoid any legal misinterpretation.

“As employers in the private sector, we are fully committed to adhering to the minimum wage law. However, we need clarity on whether the N70,000 is before or after deductions,” Ogunlowo said. He added that EAPEAN is focused on providing decent jobs for Nigerians and ensuring fair treatment of workers.

In her address, the Chairperson of the NLC Lagos State Council, Funmilayo Sessi, underscored the importance of enforcing the minimum wage, particularly in light of the financial hardship many Nigerian workers are currently facing. She urged private employers to adopt the N70,000 wage immediately, stating that even this amount is insufficient given the current economic conditions.

“The N70,000 minimum wage is just a starting point; it doesn’t adequately reflect the current cost of living. Once all adjustments are finalized, private employers must comply without delay. The NLC will strictly enforce this policy in Lagos State,” Sessi stated, warning that non-compliance could lead to serious confrontations with the NLC.

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