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September 19, 2024 Private Employers Paying Below ₦70,000 Risk Imprisonment – FG

The Federal Government has urged private sector recruitment agencies to comply with the ₦70,000 minimum wage requirement, warning that non-compliance will not be tolerated. The FG emphasized that this wage adjustment is necessary to reflect the current economic realities and affirmed that no Nigerian worker, whether in the public or private sector, should be paid below this threshold.

Alhaji Ismaila Abubakar, the Permanent Secretary of the Federal Ministry of Labour and Employment, made this statement during the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN) in Ikeja, Lagos. Represented by the ministry's Director of Employment and Wages, John Nyamali, Abubakar stated, "The minimum wage is now enshrined in law, and any employer paying less than ₦70,000 is committing a punishable offense."

He urged private employment agencies to ensure that any contracts with their clients reflect the minimum wage requirement, stressing that workers should receive at least ₦70,000 after deductions. He added, "Failure to comply with the law on the minimum wage can result in imprisonment, and the Federal Government is committed to enforcing this."

EAPEAN President, Dr. Olufemi Ogunlowo, called on the government and the Nigeria Labour Congress (NLC) to clarify whether the ₦70,000 minimum wage is based on net or gross income, urging that any ambiguities in the policy be addressed. He reassured that EAPEAN is committed to providing decent jobs and preventing exploitation of workers.

"We are a law-abiding organization and are dedicated to implementing the minimum wage," Ogunlowo said. "However, the government must specify whether the ₦70,000 is net or gross, and the NLC should resolve these ambiguities."

During the event, Funmilayo Sessi, Chairperson of the Lagos State NLC, noted that the economic hardship in Nigeria has significantly reduced the value of workers' earnings, making the ₦70,000 wage crucial. She called on private employers to ensure the immediate implementation of the new wage once consequential adjustments are finalized.

"The N70,000 is insufficient given the current economic situation," Sessi remarked. "Once adjustments are made, private employment agencies must comply with the new minimum wage. The NLC in Lagos will enforce this strictly, and EAPEAN should avoid any confrontation over it."

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