FG Warns: Private Employers Risk Jail for Paying Below ₦70,000 M’Wage

The Federal Government has issued a firm warning to private employers, cautioning that those who fail to pay workers at least ₦70,000, the newly mandated minimum wage, could face legal repercussions, including imprisonment. This follows the government’s recent adjustment to the national minimum wage in response to escalating economic challenges in Nigeria.

Speaking at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN) in Ikeja, Lagos, Kachollom Daju, Permanent Secretary of the Ministry of Labour and Employment, emphasized the need for strict compliance. Represented by John Nyamali, Director of Employment and Wages, Daju made it clear that the new wage is legally binding across all sectors, including private employment agencies.

“The minimum wage is now enshrined in law, and any employer paying less than ₦70,000 is committing a crime punishable by law,” Daju said. “Private employment agencies must ensure that in all contracts, their workers are paid no less than this amount. The least-paid worker in Nigeria should take home at least ₦70,000, after deductions.”

The government reaffirmed its commitment to enforcing compliance and warned that any employer found violating the wage law risks imprisonment.

Dr. Olufemi Ogunlowo, President of EAPEAN, voiced the association’s support for the new minimum wage policy but urged both the government and the Nigeria Labour Congress (NLC) to clarify whether the ₦70,000 figure represents net or gross pay. Ogunlowo stressed the importance of such clarity to avoid confusion among employers.

“As a labour union within the private sector, we are committed to implementing the minimum wage. Our members and clients are in full agreement with this directive,” Ogunlowo said. “However, the government needs to clarify whether the ₦70,000 is a net or gross figure. All ambiguities in the law must be addressed.”

Funmilayo Sessi, Chairperson of the NLC’s Lagos State chapter, called for strict adherence to the new wage, pointing out that the current economic climate has significantly diminished the value of workers’ earnings.

“The ₦70,000 minimum wage is already insufficient given the prevailing economic realities,” Sessi noted. “Once consequential adjustments are made, all private employment agencies should immediately comply. The NLC in Lagos State will ensure strict enforcement, and we urge private employers to avoid any conflict with the union over this issue.”

The Federal Government’s warning is clear: private employers who fail to comply with the new wage law will face serious legal consequences. Authorities are committed to ensuring that all workers receive fair compensation amidst the country’s ongoing economic difficulties.