News/Politics

Private companies stand risk of jail if they pay below minimum wage - Nigerian government warns

Share on
0
Federal Government warned employers in private companies to pay the new minimum wage of N70,000 or risk jail termFederal Government warns private companies to pay new minimum wage or risk jail term | Credit: Punch
  • The Federal Government warned employers in the private sector to pay the new N70,000 minimum wage or risk imprisonment
  • The Permanent Secretary of the Ministry of Labour and Employment said no worker in Nigeria should earn less than N70,000
  • Nigerians reacted, some support the government and others think it is not possible to implement

The Federal Government has warned employers in the private sector to adhere to the new N70,000 minimum wage law as failure to do so could result in imprisonment. 

The Permanent Secretary of the Federal Ministry of Labour and Employment, Alhaji Ismaila Abubakar, represented by the Director of Employment and Wages, John Myamali, disclosed this at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria in Lagos on Wednesday, September 18.

He revealed that it is a punishable crime for any employer to pay less than N70,000 to its employees, and added that private employment agencies should ensure that their workers do not earn less than N70,000. 

He said: “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.

“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.”

The federal government approved the new N70,000 minimum wage on Thursday, July 18, 2024. 

Nigerians react to the Federal Government’s warning

While reacting to the news, some Nigerians have pointed out that some state governments are yet to implement the new minimum wage, and others noted that many private companies may not be able to afford the new minimum wage because of the harsh economic conditions of the country. While some Nigerians support the federal government on the matter, others think it is not feasible. 

Here are some of the comments: 

@Olumister posted: “Actually, the law does not mandate individuals or businesses to pay minimum wage if they don't have up to 25 staffs. These guys are not informed. We overrated them. (Minimum wage act 2009 section 3, 1-4).”

@Jozee_prosper posted: “What about the State Governments that are yet to implement the new minimum wage? What happens to them?”

@SanyaoluS posted: “😂😂😂😂😂😂😂😂 Make I no talk abeg. How many private companies can afford it even FG hasn’t started paying it talk less of private companies.”

@leeymackk posted: “Just imagine, in a country where businesses are not moving properly.”

@Man_k476 posted: “After creating a hostile business environment, they are now following it up with threats . If the books are properly checked, how many of those holding positions of government will not be in jail?”

@theProphessor_X posted: “Honestly, I support this.”

@Chukwumaeze posted: “The SMEs are closing sown on daily basis. FG policies are a burden to the economy. This statement will lead to massive unemployment in the private sector if implemented.”

@dammygtnet posted: “Clowns! Many private schools are still paying less than N30k as salaries. Even FG is still foot dragging on its implementation.”

@Mcnicholas60 posted: “Really? Is the payment of 70K affordable, feasible by all employers? 

I can see more biz closing up while poverty levels dropped.”

N70k minimum wage: Senior Civil Servants issue stern warning to non-compliant states

Meanwhile, TheRadar earlier reported that The Association of Senior Civil Servants of Nigeria (ASCSN) issued a warning that it would halt the activities of any state that fails to implement the N70,000 national minimum wage.  

Shehu Muhammed, the former ASCSN Kaduna branch chairman, who is the newly elected president of the association made the threat on Monday, August 12 at the association’s 5th Quadrennial Delegates Conference held in Lagos.



Share on
avatar
Funmilayo Aremu-Olayemi Admin

Funmilayo Aremu-Olayemi is a reporter with over four years of experience. She covers a wide range of beats, such as health, lifestyle, and human-angle stories. Her work has been published in the Nigerian Tribune and Elegantz Magazine, USA.

Comments ()

Share your thoughts on this post

Loading...

Similar Posts

Never get outdated, subscribe now.

By subscribing, you will get daily, insightful updates of what you need to know in the news, as regarding politics, lifestyle, entertainment and cryptocurrency. You can always cancel it whenever you wish.

Social:

Subscribe now.

Category