Minimum Wage: Why Employers Should Pay More Than N70,000 — Oshiomole

A former governor of Edo State, Senator Adams Oshiomhole, has charged the federal and State governments including other employers of labour, to pay more than the N70,000 national minimum wage, noting that the whole idea of the threshold was not to restrict worker salaries but to protect the lowest income earners.

Oshiomole also said the minimum wage was grossly misunderstood in Nigeria and that is why it was depreciating and not matching the current economic realities.

While commending some State governments, who have already approved minimum wage higher than N70,000, Oshiomole said things were pretty expensive in Abuja and the federal government should be able to pay workers higher than the N70,000, urging other serious employers to also pay higher.

He explained that during the tenure of President Shehu Shagari in the Second Republic, when the concept of minimum wage was introduced, it was N125 or about $160 at the time but today, with the national minimum wage set at N70,000 or about $42, things have not really improved for the Nigerian workers.

The former labour leader Oshiomhole spoke at the 2024 Distinguished Personality Lecture for Executive Intelligence Management Course (EIMC) 17 of the National Institute For Security Studies (NISS), an educative arm of the Department of State Services (DSS), in Abuja on Wednesday.

According to him, “the whole idea of minimum wage is not to determine income of workers but to protect lower income earners. Serious employers of labour should pay much more than the minimum wage. I commend some state governments who have already approved above N70,000 and I also believe the federal government should pay more, especially for workers in Abuja because things are pretty expensive in Abuja.”

He, however, noted that though minimum wage should be reviewed frequently as inflation increases, he cautioned about frequent increment of salaries as it could affect the economy.

Speaking on the current status of the Naira, Oshiomole said the Naira is grossly undervalued in relation to its purchasing power, noting that even though the exchange rates are always cause for concern, what Naira can buy in Nigeria, the equivalent may not buy same in the USA.

For his part, the DG DSS, Adeola Ajayi, said the choice of the distinguished personality Oshiomole for the lecture was because he was well-equipped, having been a labour leader, governor and now a Senator.

Meanwhile, the commandant of the NISS, Joseph Obama, while giving his address of welcome explained that the EIMC 17 is made up of 91 participants from different African countries, with participants from DSS, JAMB, Customs, EFCC, ICPC, NPF, among others.

Participants were also drawn from Chad, Rwanda, The Gambia, among other countries.