Governor Dapo Abiodun has approved ₦77,000 as the new Minimum Wage: Here is What You Need to Know

Governor Dapo Abiodun of Ogun State has indeed approved a new minimum wage of ₦77,000 for the lowest-paid workers in the state, effective immediately as of October 2024. This decision positions Ogun State at the forefront of minimum wage implementation in Nigeria, surpassing the national figure set by President Bola Tinubu, which was ₦70,000. Here are some key points about this development:

• Implementation: The new minimum wage takes effect from October, showcasing immediate action following the approval.
• Consultation: This decision came after consultations with organized labor, including the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the Joint Negotiating Council (JNC). This process underscores a collaborative approach between the government and labor unions.
• Economic Considerations: Governor Abiodun has emphasized the importance of increasing state revenue and efficiency to sustain this new wage level, indicating a strategic economic approach to manage the increased expenditure.
• Implications for Workers: This adjustment not only directly benefits the lowest-paid state workers but is expected to influence wage scales across various sectors due to consequential adjustments. Notably, the government has also recommended that the private sector consider similar wage adjustments, though implementation might vary.
• No Tax on New Salary: A significant aspect of this new policy is that the new basic salary will not be taxed, aiming to maximize the take-home pay for workers.
• Pensioners and Other Adjustments: There’s mention of further discussions regarding adjustments for pensioners, suggesting that the impact of this wage increase might extend beyond just current workers.
• Reactions: Labor leaders have praised this move, highlighting it as a worker-friendly policy that could set a benchmark for other states.

This initiative by Governor Abiodun not only aims at improving the living standards of workers in Ogun State but also reflects on the state’s economic health and governance model, potentially setting a precedent for other states in Nigeria.