FG Lacks Power to Enforce Minimum Wage on States, Private Sector – Minister

The Minister of Labour and Employment, Nkeiruka Onyejeocha, has clarified that the Federal Government lacks the authority to impose a minimum wage on states, local governments, and the private sector. In an interview on Channels Television’s Politics Today, she emphasized that the government can only set a minimum wage for federal employees.

Onyejeocha’s comments come amid ongoing negotiations between the government and organized labour over a new minimum wage. Labour unions have been demanding a minimum wage of ₦494,000, while the government has offered a 100% increase from the current wage of ₦30,000, which is ₦60,000.

The Minister highlighted the challenges faced by states in implementing previous minimum wage agreements, noting that some states struggled to pay the agreed-upon wages of ₦18,000 and ₦30,000. She stressed that the government cannot impose a minimum wage on states, local governments, and the private sector, as it is not within its jurisdiction.

Onyejeocha’s statement underscores the complexities involved in setting a new minimum wage. While the government has the authority to set a minimum wage for federal employees, any new minimum wage agreement must be negotiated and agreed upon by states, local governments, and the private sector.

The ongoing strike by labour unions, which began on Monday, has crippled economic activities in the country. The government’s inability to impose a minimum wage on states, local governments, and the private sector may prolong the negotiations. However, Onyejeocha’s statement emphasizes the need for a collaborative approach to setting a new minimum wage that is fair and sustainable for all parties involved.