The Federal Government has threatened to jail private employers paying below 70,000 new minimum wage despite its struggles to start payment of the same amount to federal civil servants.

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.

The current N70,000 minimum wage was increased from N30,000 in July by President Bola Tinubu after negotiations between the government, the Nigerian Labour Congress and the Trade Union Congress. 

The Federal Government emphasized that 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. 

It stated 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.

Mr Abubakar, represented by the Director of Employment and Wages of the ministry, John Nyamali, said, “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.”

However, the government has shown lack of commitment to enforce the new wage law in the public sector with reports on how state governments continue to delay new wage payment to civil servants since its approval. 

In fact, some state governments have been accused of dragging their feet in implementing the new minimum wage, which has led to frustration among civil servants struggling to make ends meet.

Stakeholders have continued to call on the government not to only threaten and focus on the private sector based on the new wage payment but to also enforce penalties on the public sector to ensure adherence to it. 

Meanwhile, the President of the Employers Association for Private Employment Agencies of Nigeria, Dr Olufemi Ogunlowo, during the programme 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.

Mr Ogunlowo 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. 

Ms Sessi 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.”