The Permanent Secretary, Federal Ministry of Labour and Employment, Ismaila Abubakar, made the disclosure while speaking at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria, held in Ikeja, Lagos.

President Bola Tinubu administration raised the minimum wage to N70,000 from N30,000 in July 2024 after negotiations between the government, the labour unions.  According to the government, the new minimum wage was approved to tackle the current economic challenges, noting that paying any worker less than N70,000 was a disruption of the law and thus a crime.

“The minimum wage is now a law, and as a result, it is a punishable crime for any employer to pay less than N70,000 to any of its workers. The private employment agencies should make it compulsory in any contract they take from their principal that their workers should not earn less than the minimum wage. The least paid worker in Nigeria should earn N70,000, and I think that should be after all deductions. The minimum wage is a law, and you can be jailed if you fail to implement it. The Federal Government is committed to ensuring that the least paid worker goes home with N70,000”, the Minister said.

The Minister, who was represented by the Director of Employment and Wages of the ministry, John Nyamali, emphasized that private employment agencies must ensure contracts include a clause guaranteeing workers earn at least the minimum wage, after deductions, to ensure fair compensation for employees either in the public or private sector.

Speaking at the event, the President of the Employers Association for Private Employment Agencies of Nigeria, Dr Olufemi Ogunlowo, sought clarification from the government and the NLC on whether the minimum wage was net or gross and requested that ambiguities in the Act should be addressed and explained to ensure clarity and compliance.

He said: “As an employers’ union in the private sector, we are committed to implementing the minimum wage. We are a law-abiding and guided association. Our principals and clients have also keyed into the minimum wage. However, the government must clarify whether the N70,000 minimum wage is net or gross. The government and the NLC should address all ambiguities in the minimum wage.’’

Also, the Chairperson of the NLC, Lagos State Council, Funmilayo Sessi, also called on private employers to ensure payment of the N70,000 minimum wage, adding that the NLC was also pushing for strict enforcement.

She noted that though the N70,000 might not be enough, it’s a crucial step towards fair compensation. Ms Sessi said, “The N70,000 isn’t enough in the current economic realities. By the time the consequential adjustment is concluded, all private employment agencies should immediately start paying their workers the N70,000 minimum wage. The NLC in Lagos State will see to the strict enforcement of the minimum wage. EAPEAN should avoid confrontation with the NLC on the minimum wage”, she said.