Campus Business (September 27, 2024) – The Federal Government has commenced the payment of the newly approved ₦70,000 minimum wage to over 1.2 million civil servants, including a revised ₦77,000 monthly allowance for National Youth Service Corps (NYSC) members. The payment follows seven months of negotiations and is reflected in the September 2024 payroll.

The warrant for payment, signed by the Accountant-General of the Federation, Dr. Oluwatoyin Madein, directed the Budget Office of the Federation to implement the new wage structure for all civil servants, paramilitary officers, armed forces personnel, and corps members.

Salary Breakdown for Civil Servants

According to documents from the National Income, Salaries, and Wages Commission, the new salaries across different civil service grades are as follows:

• Grade Level 1: ₦930,000 per annum
• Grade Level 2: ₦934,160 per annum
• Grade Level 7: ₦1,277,667 per annum
• Grade Level 10: ₦1,806,041 per annum
• Grade Level 17: ₦6,918,560 per annum (highest grade, reserved for permanent secretaries)

These salary adjustments include the new minimum wage and consequential increases across various levels of the federal workforce.

NYSC Members’ Allowance Increased to ₦77,000

As part of the wage adjustment, NYSC members will now receive a ₦77,000 monthly allowance, up from the previous ₦33,000. This increase aligns with the government’s commitment to improving the financial well-being of public sector employees, including youth corps members.

Official Confirmation

The Director of Press at the Office of the Accountant-General, Bawa Mokwa, confirmed the start of payments, stating:
“The new minimum wage payment has begun, and civil servants and corps members should begin receiving alerts shortly. However, there is no update on arrears yet.”

The new wage structure was signed into law by President Bola Tinubu on July 29, 2024, following successful negotiations with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC). The implementation is expected to cost the government ₦4.019 trillion annually.

Labour and Public Reactions

Labour unions, including the NLC and TUC, have welcomed the development and called for prompt implementation across all sectors. Benson Upah, spokesperson for the NLC, said:
“We urge other employers to follow suit and implement the new minimum wage without delay.”

Similarly, TUC Deputy President, Tommy Etim, added:
“The template for the new minimum wage has been released, and there is no reason for further delays by other employers.”

However, some civil servants expressed concerns about the adequacy of the increase, given Nigeria’s economic challenges. A Grade Level 12 officer remarked:
“This increase is far too small compared to the current economic reality. We expected more, considering the hardships we’ve endured.”

Financial Impact and Future Implications

The government’s new wage bill will cost ₦334.9 billion monthly for over 1.2 million workers, leading to a total annual expenditure of ₦4.019 trillion. This increase follows the government’s effort to secure additional revenue, as seen in the August FAAC meeting, where ₦200 billion was transferred into the non-savings account.

As payments begin, pensioners in the Southwest have renewed their demand for a higher minimum wage, calling for a ₦250,000 monthly minimum to reflect the ongoing economic pressures.