Why Are Some States Delaying the New Minimum Wage Hike?

In Nigeria, President Bola Ahmed Tinubu’s recent approval of a new minimum wage of N70,000 excited many civil servants. This wage increase was expected to offer relief, especially amid rising living costs. 

However, despite the official announcement, not all states have implemented this raise, leaving workers in many regions with their previous, lower wages. 

At least seven states, Zamfara, Sokoto, Osun, Cross River, Imo, Plateau, Taraba as well as the Federal Capital Territory (FCT) have yet to approve or pay the new minimum wage, sparking questions and frustrations among workers and observers alike.

Financial Challenges faced by states

One significant reason for the delay in some states is financial strain. Many state governments are already struggling with limited budgets, making it hard for them to find additional funds for higher salaries.

In states like Zamfara and Sokoto, for example, the administrations have been battling financial challenges even before the wage increase was announced. Governor Dauda Lawal of Zamfara only recently increased the minimum wage to N30,000, and further raising it to N70,000 requires even more resources. 

For some states, implementing the new wage means re-evaluating their finances, which might not currently support such an increase.

In Cross River, Governor Bassey Otu had previously increased the minimum wage to N40,000 as a step towards alleviating workers’ financial burden. However, transitioning from N40,000 to N70,000 requires significant budget adjustments. For many states, the pressure to maintain other essential services while allocating more funds for salaries presents a tough balancing act.

State-specific priorities and promises

Beyond financial issues, some governors have other priorities they are addressing first. Governors may choose to prioritize infrastructure projects, security initiatives, or social programs before implementing wage changes. 

For instance, Governor Ademola Adeleke of Osun and Governor Hope Uzodinma of Imo, who is also the chairman of the Progressive Governors Forum (PGF), have expressed commitments to various state initiatives but are yet to formally announce the new wage approval.

In Taraba, Governor Agbu Kefas made an announcement that he was ready to implement the new minimum wage, but as of now, the plan remains unfulfilled. Similarly, Governor Caleb Manasseh Mutfwang of Plateau has not yet approved the new wage, despite anticipation from civil servants in the state. 

These governors might be weighing other pressing needs against the minimum wage implementation.

Political and administrative delays

Sometimes, the delay in approving the new minimum wage is simply a result of administrative bottlenecks. Budget adjustments, legal approvals, and coordination with local governments can all slow down implementation. 

In the Federal Capital Territory (FCT), for example, FCT Minister Nyesom Wike has not yet made a clear statement on when or if the minimum wage will be implemented for civil servants in Abuja.

This uncertainty leaves many FCT employees in limbo, as they wait for a definitive answer. Administrative delays can be frustrating for workers, especially in situations where promises are made but concrete actions lag behind.

The impact on workers

For civil servants in these states, the delay in receiving the new minimum wage is a source of disappointment. Rising costs of living have put immense pressure on workers, and the prospect of a wage increase brings hope for some financial relief. 

In states like Borno, where the new wage was implemented for primary school teachers, many workers expressed joy and relief as they shared payment alerts on social media. This has increased the frustration of workers in states yet to implement the new wage, as they witness peers in other regions receiving the higher salary.

What’s next?

As pressure mounts, many workers’ unions and civil society groups are calling on state governments to speed up the implementation of the N70,000 minimum wage. Governors are urged to prioritize workers’ needs and communicate clear timelines for wage adjustments. 

Civil servants and their families are eagerly waiting for these states to follow the federal government’s lead and provide the much-needed salary increase.

In the meantime, workers in Zamfara, Sokoto, Osun, Cross River, Imo, Plateau, Taraba, and the FCT continue to hope for action from their state leaders. The implementation of the new wage would represent not only a financial boost but also a recognition of the critical role that civil servants play in the functioning and development of their states.