Federal Government Considers Sanctions for States Reluctant to Implement New Minimum Wage

Following the conclusion of the public hearing by the tripartite committee on the New National Minimum Wage across the six geo-political zones of Nigeria, the Federal Government is contemplating sanctions against states that are hesitant to implement the new wage structure. The consideration of sanctions emerged as part of the recommendations put forward by stakeholders during the public hearing sessions.

Although the specifics of the recommended sanctions remain unclear at this stage, it has been suggested that states unwilling to adhere to the new minimum wage may face consequences such as being deprived of Federal Government grants. The tripartite committee conducted public hearings in all six geo-political zones on March 7, 2024, during which stakeholders advocated for sanctions against non-compliant states.

It is anticipated that the current minimum wage of N30,000 per month will cease to be effective after March 31, 2024, paving the way for the implementation of a new wage rate. The committee is diligently working towards finalizing the new minimum wage amount, which is expected to be announced by President Bola Ahmed Tinubu on May 1, 2024.

During a meeting involving members of the tripartite committee, representatives from organized labor, employers, and both state and federal government officials in Abuja, the committee chairman, Alhaji Bukar Goni Aji, urged all stakeholders to collaborate for the progress and development of the country.

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