N72,000 Minimum Wage Sparks Debate as Kaduna Govt Rejects NLC Criticism

N72,000 Minimum Wage Sparks Debate as Kaduna Govt Rejects NLC Criticism

The Kaduna State Government has resisted allegations by the Nigerian Labour Congress (NLC) that it is not fully implementing the National Minimum Wage Act. Governor Uba Sani’s administration emphasized that the state is already complying with the law, paying the least-paid worker a gross salary of ₦72,000 in November 2024.

The clarification came through the governor’s Chief Press Secretary, Ibraheem Musa, who described the NLC’s claims as misleading and unfair. “It is grossly unfair to lump Kaduna State with others that are yet to implement the Minimum Wage Act,” Musa stated.

Highlighting the state’s compliance, Musa explained that the administration has adhered to the “spirit and letter” of the law, noting that the November payments reflect a commitment to better wages for civil servants. However, he drew a line between minimum wage compliance and salary consequential adjustments, which the NLC insists are still pending.

“Minimum Wage and salary increment are distinct issues,” Musa explained. “NLC is harping on the latter while ignoring the fact that the state government has fulfilled its obligation regarding the former.”

Revenue Challenges and Spending Breakdown

Kaduna State receives ₦8 billion monthly from the Federal Account Allocation Committee (FAAC) and generates an additional ₦4 billion internally. However, Musa revealed that rising wage bills and debt servicing obligations strain the state’s finances.

“With the implementation of the minimum wage, our monthly wage bill rose from ₦5.4 billion to ₦6.3 billion,” he said. “Additionally, ₦4 billion is deducted monthly for loan repayments, leaving just ₦2 billion to fund critical projects like rural development, healthcare, education, and other dividends of democracy.”

Musa argued that allocating over 90% of the state’s revenue to wages would be unreasonable, especially since the civil servant population constitutes less than 1% of the state’s estimated 10 million residents.

“There are 84,827 civil servants in Kaduna State. While their welfare is important, the government must also prioritize the broader population’s needs,” he explained.

Palliatives and Plea for Patience

The Kaduna State Government called on the NLC to exercise patience regarding consequential adjustments, promising to address the issue once revenue improves.

Musa highlighted measures already taken to support workers amid economic challenges, including free transportation for civil servants through government-provided buses.

“Governor Uba Sani is labour-friendly and committed to easing the burden on civil servants,” Musa said.

NLC’s Stand and Public Reactions

The NLC has maintained that full compliance with the National Minimum Wage Act includes both the base wage and consequential adjustments. However, the government argues that balancing these demands with limited revenue requires strategic planning.

Public reactions to the government’s position remain mixed. While some applaud the administration’s effort to increase wages, others call for greater transparency and equity in revenue allocation.

As the debate unfolds, civil servants and residents alike are watching closely, hoping for a resolution that balances worker welfare with statewide development needs.