Governor Babajide Sanwo-Olu of Lagos State has explained why the state would pay N85,000 minimum wage and then increase same to N100,000 in January of 2025.
Mr Sanwo-Olu spoke on Wednesday while appearing on Channels Television’s Politics Today programme.
The new minimum wage in the state is N15,000 higher than what the federal government announced in July.
“I am glad to let you know that the minimum wage for Lagos, which we discussed with our union, is N85,000,” Mr Sanwo-Olu said.
He said the development is not to compete with other states but “a function of affordability and capacity.”
Mr Sanwo-Olu said the move is to ensure that civil servants earn a “living wage” and also for them to know that the government is committed to their welfare.
Sharing his aspirations for an increase, the governor said, “I would like to come back to you in January to say I have been able to increase the minimum wage of Lagos to N100,000…”
Following months of pressure from the labour unions, the administration of President Bola Tinubu in July increased the minimum wage to N70,000, a 43 per cent increase from the previous wage of N30,000.
The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) mounted pressure on the federal government following the removal of the fuel subsidy, high inflation rates and deregulation of the Naira.
According to the groups, the previous wage of N30,000 barely covers the rising costs of necessities for Nigerian workers.
As of September, only seven states had set up committees to fashion out modalities for its implementation.
Before the announcement of the minimum wage, the Nigeria Governors Forum issued a statement in June warning that even N60,000 as the minimum wage was “not sustainable and cannot fly.”
If paid at all, they argued that all their monthly disbursements from the Federation Accounts Allocation Committee (FAAC) would be utilised in the payment of salaries, with nothing left for socio-economic development.
Mr Sanwo-Olu also disclosed that the state had earlier in the year increased the salary of workers.
