Government begins wage award arrears and minimum wage payments amid mixed reactions

Summary

• Federal Government commences phased payment of five-month ₦35,000 wage award arrears
• Implementation of ₦70,000 minimum wage begins across federal institutions, with state-level variation
• Labour unions criticise pace and value of payments, citing inflation and unmet demands

Abuja, Nigeria — The Nigerian government has commenced disbursement of long-awaited wage award arrears and begun implementation of the revised national minimum wage, responding to persistent pressure from labour unions amid economic hardship.

Following the removal of fuel subsidies in May 2023, the Federal Government introduced a temporary ₦35,000 monthly wage award for federal civil servants to cushion the economic impact.

Initially planned for six months, the payments were delayed, resulting in arrears. In a recent update, the government began paying the five-month backlog at the end of May 2025. The arrears are to be paid in four monthly installments, starting after April 2025 salaries.

However, the Nigeria Labour Congress (NLC) has criticised the payment of only one month’s arrears so far, calling it “tokenistic and dismissive,” and expressing dissatisfaction with the slow rollout. Some agencies, such as the Independent National Electoral Commission (INEC), had independently paid the wage award to their staff earlier.

On the minimum wage front, President Bola Tinubu signed the National Minimum Wage (Amendment) Act into law in July 2024, increasing the minimum wage from ₦30,000 to ₦70,000.

The revised wage took effect retroactively from April 14, 2024, with arrears owed from that date. A significant change in the Act was the reduction of the wage review period from five years to three, setting the next review for 2027.

The new minimum wage has now been implemented across all federal ministries, agencies, and parastatals. Circulars issued by the National Salaries, Incomes and Wages Commission (NSIWC) detail new salary structures for public service workers, including those in the medical, academic, and research sectors.

Adoption at the state level, however, remains uneven. While states like Lagos, Rivers, and Kogi have announced even higher minimum wages, ₦85,000 and ₦72,500 respectively, many others have yet to comply. As of June 2025, around 20 states have not implemented the ₦70,000 minimum wage for local government employees and primary school teachers.

Labour leaders maintain that although the revised wage is an improvement, it falls short of meeting current economic realities, with inflation hitting 34.1% and the cost of living continuing to rise. The NLC and Trade Union Congress (TUC) had initially demanded ₦250,000 as the minimum wage, a figure they argue better reflects present-day needs.

The government has also begun paying ₦44,000 in minimum wage arrears to former National Youth Service Corps (NYSC) members.

In a bid to ease economic pressure on vulnerable groups, some state governments have introduced supplementary measures. For example, Enugu has continued wage award payments pending the finalisation of national wage discussions, while Ogun has launched special cash awards for students.

Employers that fail to comply with the new minimum wage law face penalties, including fines of up to 5% of their monthly payroll and additional daily charges for continued non-compliance.

Exemptions to the policy include part-time and commission-based workers, seasonal employees, and businesses with fewer than 25 staff.