Yesterday, July 29, 2024, at a Federal Executive Council meeting, President Bola Ahmed Tinubu and members of the National Assembly, including Senate President Godswill Akpabio, signed the National Minimum Wage Amendment Bill 2024 into law. Olusegun Dada, the President’s Special Assistant, announced the signing via his X account on social media. It establishes a minimum monthly compensation of N70,000 and includes provisions for periodic evaluations every three years.

The signing, which occurred midway through the meeting, introduces a significant increase in the minimum wage, aimed at addressing economic challenges and improving the standard of living for workers across Nigeria.

The law establishes N70,000 as the new minimum salary, a substantial rise from previous levels.

In addition to setting the minimum wage, the law mandates that the wage be reviewed every three years. This review mechanism is intended to ensure that the minimum wage remains consistent with economic conditions and inflationary trends, allowing for necessary adjustments over time.

The introduction of this bill is expected to have a broad impact on the Nigerian workforce, influencing wage policies across various sectors. The President and National Assembly leadership have indicated that this step is part of a broader effort to enhance workers’ compensation and contribute to economic stability.

The implementation of the law, which sets the minimum monthly salary at N70,000 and includes a review every three years, carries both potential benefits and challenges. On the positive side, the increased minimum wage is expected to enhance the standard of living for workers, improve their purchasing power, and address inflationary pressures.

The periodic reviews ensure that the wage remains relevant to economic conditions over time.

However, potential negative effects include increased operational costs for businesses, which may lead to higher prices for goods and services or reduced hiring. Additionally, smaller businesses could face a financial strain, which can impact employment levels.

As the new law is implemented, it will be important to observe its effects on the labor market and broader economic conditions in Nigeria.