Universal Minimum Wage Full Implementation: A Critical Step Towards Poverty and Hunger Reduction in Nigeria
By Mohammed Bello
Nigeria faces a significant challenge in its efforts to combat poverty and hunger, a situation exacerbated by a persistently high inflation rate, recorded at 24.23% as of March 2025. The alarming acceleration of consumer prices, rising by 3.90% in March from 2.04% in February, further exacerbates the economic vulnerabilities of a significant portion of the population, with projections indicating that over 33 million Nigerians face food insecurity in the current year. While the federal government’s legislative enactment of a new national minimum wage of N70,000 represents a commendable policy intervention aimed at bolstering the financial capacity of workers, the observed pattern of delayed or incomplete implementation of this crucial policy by a substantial number of state governments poses a significant threat to its intended impact. Specifically, as reported by the Nigeria Union of Local Government Employees (NULGE) earlier this month (April 2025), approximately 20 states, including Yobe, Gombe, Zamfara, Kaduna, Imo, Ebonyi, Cross River, the Federal Capital Territory (Abuja), Borno, and 11 others, have yet to fully effect the N70,000 minimum wage for local government workers and primary school teachers. This lag in implementation directly undermines the potential of the minimum wage to serve as an effective mechanism for poverty alleviation and economic stimulus at the sub-national level.
Extant empirical evidence robustly demonstrates the positive correlation between increasing the purchasing power of civil servants and the stimulation of local economies. Enhanced disposable income among this significant segment of the workforce can lead to increased demand for local goods and services, thereby fostering economic activity, reducing income inequality, and ultimately contributing to improved overall living standards. However, this empirically supported potential remains unrealised in those states that have yet to fully effect this vital policy change. Prioritising the immediate and full implementation of the N70,000 minimum wage is of critical significance in directly addressing the pervasive issues of poverty and hunger amidst the prevailing challenging economic realities characterised by high inflation and widespread food insecurity. The timely adoption of this policy is not merely a matter of compliance but a strategic imperative for fostering economic resilience and improving the well-being of vulnerable populations within these states.
 The Economic Imperative: Amplifying Purchasing Power and Stimulating Sub-National Economies – Evidence from Early Adopting States
The prevailing economic climate in Nigeria necessitates proactive and impactful policy interventions, and the implementation of a fair minimum wage transcends the realm of social justice, functioning as a critical economic instrument for injecting essential capital into sub-national economies. States such as Lagos (N85,000), Rivers (N85,000), Bayelsa (N80,000), and Niger (N80,000), among others, have already demonstrated the positive economic ramifications of prioritizing the welfare of their workforce. These proactive measures are likely contributing to an augmentation of local aggregate demand and a consequent invigoration of economic activity within their respective jurisdictions, providing empirical evidence of the policy’s intended stimulative effect. Conversely, the protracted delays observed in states including Sokoto, Yobe, Gombe, Zamfara, Kaduna, Imo, Ebonyi, Borno, and Cross River, among others, are leaving a substantial segment of their workforce and their associated local economies in a state of economic stagnation. Civil servants within these states, who constitute a vital component of the formal economic structure, are compelled to contend with escalating living costs while their wages remain static. This situation significantly constrains their capacity to engage meaningfully in local commerce, thereby hindering economic dynamism and increasing their susceptibility to poverty. The delayed adoption of the minimum wage in these states represents a missed opportunity to leverage the fiscal power of their workforce as a catalyst for sub-national economic growth and stability.
 The Social Significance: Mitigating Poverty and Food Insecurity – Quantifying the Human Cost of Implementation Lag
The fundamental rationale for a robust minimum wage lies in its direct and measurable capacity to alleviate poverty and reduce the prevalence of food insecurity. For civil servants currently not enjoying the full implementation of the minimum wage as enacted by the Federal Government, the mandated increase represents a critical economic lifeline, providing a substantial and quantifiable augmentation of their household income. This additional financial capacity can demonstrably translate into the ability to afford a more nutritionally adequate diet, thereby mitigating food insecurity; access essential healthcare services, reducing vulnerability to health shocks; and invest in the educational opportunities of their children, offering a tangible pathway towards breaking intergenerational cycles of poverty.
The continued inaction in states that have yet to fully implement the revised minimum wage carries significant and demonstrable social consequences, imposing a tangible human cost on dedicated civil servants and their families. These individuals are disproportionately bearing the burden of prevailing economic hardship, facing an increased risk of food insecurity, a decline in their overall quality of life, and heightened vulnerability to economic shocks. This protracted delay not only negatively impacts individual and familial well-being but also demonstrably undermines morale and productivity within the state’s civil service, potentially affecting the efficiency and effectiveness of public service delivery. The social imperative for immediate and comprehensive full implementation is therefore underscored by the potential for significant positive impacts on poverty reduction, food security, and the overall welfare of a substantial segment of the population in these states.
 *Addressing Fiscal Sustainability Concerns Through Strategic Prioritisation and Economic Foresight*
While concerns regarding fiscal capacity are frequently articulated as justifications for delaying the full implementation of the revised minimum wage, recent augmentations in federal allocations to sub-national entities have demonstrably enhanced their financial standing, arguably positioning them for full compliance. The Nigeria Employers’ Consultative Association (NECA) has cogently argued that these improved fiscal conditions should now enable states to prioritise the full implementation of the new minimum wage within their budgetary frameworks.
Furthermore, a well-compensated workforce exhibits demonstrably higher levels of motivation and productivity, directly translating into improved efficiency in public service delivery. The long-term economic benefits accruing from a stimulated local economy, driven by increased household consumption resulting from enhanced wage levels, have the potential to significantly outweigh the initial financial investment required for minimum wage compliance. States that prioritize efficient resource management practices, actively explore and optimize avenues for enhanced internally generated revenue (IGR), and commit to prudent fiscal spending will recognize that investing in their human capital through the provision of fair and competitive wages is not merely an expenditure but a strategic imperative for fostering sustainable socio-economic development and achieving tangible reductions in poverty levels within their jurisdictions. This forward-thinking approach acknowledges the intrinsic link between a well-supported workforce and a thriving state economy.
 *A Decisive Imperative: Universal and Immediate Implementation of the National Minimum Wage*
The prevailing socio-economic realities of Nigeria necessitate an immediate and comprehensive commitment to the universal and full implementation of the legislated national minimum wage. The federal government has established the requisite policy framework; the onus now rests upon each state government to translate this crucial legislation into tangible improvements in the lives of their workforce and the well-being of their citizenry. The continued delay in full compliance by a subset of states represents not only a demonstrable inequity to their hardworking civil servants but also a significant impediment to the economic vitality of their respective sub-national economies and the broader national agenda to combat poverty and food insecurity.
Given Nigeria’s current economic vulnerabilities, marked by significant inflation and widespread food insecurity, and recognising the crucial role of a fair minimum wage in mitigating economic hardship and stimulating sub-national economies, a decisive and unified national response is imperative. I strongly urge the governors of states yet to fully implement the N70,000 minimum wage to undertake immediate and comprehensive action, encompassing a clear acknowledgment of the urgent need to safeguard their workforce from economic shocks, a strategic prioritization of fair wages as a catalyst for enhanced productivity and morale within the public service, the expedited allocation of necessary budgetary resources and efficient administrative mechanisms for prompt payment, the fostering of transparent communication and robust engagement with labour unions and civil servants to ensure a seamless and equitable transition, and a clear recognition of the broader macroeconomic benefits of investing in their workforce’s financial security for sustainable state development and tangible poverty reduction. The proactive leadership demonstrated by states that have already adopted the new minimum wage underscores the necessity for remaining states to overcome any further impediments and align with this critical national endeavour, as a cohesive and comprehensive implementation across all states is indispensable for effectively combating poverty and food insecurity. The imperative for universal and immediate implementation is now paramount.
Mohammed Bello is the Founder/Chief Executive Officer, African Centre for Innovative Research and Development (AFRI-CIRD). He wrote via: [email protected]
