News
Increased Minimum Wage: Before you put yourself in a financial mess
By Paulinus I. Iyika, PhD, FCA
It is no longer news that the Federal Government of Nigeria has agreed to raise the Minimum Wage to N70,000. This is a whopping 133.33% increase from the current N30,000.
The purpose of this article is not to discuss the adequacy or otherwise of this amount but to educate as many workers out there who believe they will be receiving an increased monthly salary equivalent to 133.33%.
First of all, what is minimum wage?
Strictly speaking, the minimum wage is the lowest legal hourly pay that employers can give workers. This rate varies by country, state, and sometimes even by city. It is set by governments through enacting into law to ensure a minimum standard of living for employees.
However, national minimum as it is in Nigeria requires the Federal Government to set a flat rate for all employers both public and private sectors. This is in contrast to some countries where Sub-National governments are allowed to fixed wages. In the US for example , some states have minimum wages higher than the federal government.
Back to the main issue.
I came across a formula making the round on social media which is misleading. According to the formula, everybody should expect a 133.33% increment.
X=(a*b)/c
Where :
X =New salary (based on b)
a=Current salary
b=new minimum wage
c=current minimum wage
Hence , an employee on #52,000 should expect about N121,000.
This is utterly misleading and it will be important to clarify this in order to manage expectations. Don’t begin to spend money that does not and will never exist.
For those on the lowest rung of income level, say those on GL 1 for example who earn the lowest or some persons in private sector say cleaners, etc. , the expectation is higher because they are the most hit in the economy.
However, as the grade level increases, the incremental effect reduces across board. At the end, someone earning say #300,000 will not get same percentage increment like someone at the lowest level. Applying same rate of increase will normally lead to #699,999 for someone earning #300,000 presently.
The responsibility to determine the variations across board is domiciled with the National Salaries Income and Wages Commission(NSIWC). They will carry out consequential adjustment which refers to the revisions in the salary structure across various levels of employment that follow an increase in the minimum wage. When the minimum wage is increased, it doesn’t only affect the lowest-paid employees; it also necessitates adjustments for higher salary brackets *to maintain wage differentials and ensure equity within the pay structure*.
The consequential adjustment typically involves:
1. *Review of Salary Structures*: The NSIWC reviews the entire salary structure of the public and private sectors to determine how the new minimum wage affects different pay grades.
2 *Maintaining Wage Relativity*: Ensuring that the new minimum wage does not compress the wage structure, meaning that pay differentials between various grades and levels of employment are maintained. This helps in preserving the incentives for career progression and maintaining motivation among higher-skilled workers.
3 *Incremental Adjustments*: Incremental adjustments are made to the salaries of employees in different grades. These adjustments are calculated to ensure that each grade receives a proportionate increase that reflects the rise in the minimum wage.
4 *Equity and Fairness*:
Ensuring that the salary adjustments are fair and equitable across all employment levels. This involves making sure that the salary increases are proportionate and justified based on job responsibilities, experience, and qualifications.
5. *Budget Impact Analysis*: Assessing the financial implications of the salary adjustments for employers, particularly in the public sector. This includes determining how the increased wage bill will be funded and its impact on government budgets and spending.
6. *Negotiations and Consultations*:
Engaging with labor unions, employee representatives, and other stakeholders to negotiate and agree on the new salary scales. This helps in achieving consensus and minimizing disputes.
7. *Implementation Timeline*: Establishing a timeline for the implementation of the consequential adjustments. This includes setting dates for the adjustments to take effect and ensuring that all parties are aware of the changes.
9. *Compliance Monitoring*: The NSIWC monitors compliance with the new salary structures to ensure that employers adhere to the adjustments and that employees receive their due increases.
In summary, consequential adjustment by the NSIWC ensures that an increase in the minimum wage leads to a comprehensive revision of the entire salary structure, maintaining fairness and equity *while considering the financial capabilities of employers*.
*Do not build castles in the air* !
NB: The opinions expressed here are entirely mine and not the organization I represent. It is also aimed at educating not for advisory purposes.
News
Police high command mobilise to rescue 20 NYSC members abducted in Imo
The Inspector General of Police (IGP) Olatunji Disu, has deployed the Deputy Inspector-General of Police (DIG) in charge of Operations, Shehu Umar Nadada, to Imo State to provide operational leadership and strengthen ongoing efforts to rescue the 20 prospective National Youth Service Corps (NYSC) members and other passengers abducted along the Owerri-Onitsha Road at Umunoha on October 1, 2026.
Force Public Relations Officer, Force Headquarters, CSP Anietie Iniedu, disclosed in a statement on Friday that DIG Nadada arrived Imo State alongside two Commissioners of Police and immediately carried out an on-the-spot assessment of the security situation and the search-and-rescue operations being coordinated by the Imo State Police Command.
During the visit, the DIG reviewed operational strategies, personnel deployments, and the utilization of security assets. He also issued fresh directives aimed at enhancing the effectiveness of the coordinated rescue mission.
The assessment was conducted in the company of the Commissioner of Police, Imo State Command, CP Audu Garba Bosso; the Commissioner of Police, Federal Operations, CP Akpan Anifiok; the Commissioner of Police in charge of the Police Mobile Force, CP Nendel Joseph Gomwalk; other service commanders; and members of the Imo State Police Command management team.
According to Iniedu, the police have intensified the search operation, deploying additional tactical teams and operational resources to identified locations.
He said the operation was being reinforced through intelligence-led efforts to track the abductors, alongside coordinated operations with other security agencies.
Nadada, according to the statement, assured members of the public that the police would continue working to secure the safe release of those abducted.
“The Nigeria Police Force is committed to securing the safe rescue of the 20 abducted persons and will sustain the operation until the mission is successfully concluded,” Iniedu quoted Nadada as saying.
The DIG appealed to members of the public and the media to remain calm and vigilant, while urging anyone with credible information that could assist the rescue operation to report to the police or the nearest security formation.
“All information received will be treated with strict confidentiality,” he said.
The police said further information on the rescue operation would be made available as developments unfold.
News
Fubara presents staff of office to new Opobo king as monarch pledges to unite community
Photo caption: Governor of Rivers State, His Excellency, Sir Siminalayi Fubara (right) presenting the Staff of Office to His Majesty King Charles Douglas Mac-Pepple Jaja Jeki VI (left),the newly crowned Amanyanabo of Opobo Kingdom at Government House Port Harcourt on Friday.
Governor of Rivers State , His Excellency, Sir Siminalayi Fubara, on Friday formally presented the Certificate of Recognition and Staff of Office to the new Amanyanabo of Opobo Kingdom, His Majesty King Charles Douglas Mac-Pepple Jaja, Jeki VI, urging the new monarch to promote peace, unity and inclusiveness in the kingdom.
The governor while congratulating the new monarch, for successfully scaling the hurdles of selection and coronation, urged the royal father to see contenders who lost out of the selection process, not as victims but as comrades who must be carried along for the kingdom to move forward during his reign.
Speaking during the presentation ceremony in Government House, Port Harcourt, Governor Fubara apologized for his absence at the coronation, explaining that it was due to a call to higher national service, but that his spirit and soul were fully with the kingdom throughout the process.
He declared that history will remember his administration for peacefully laying to rest the late King, Douglas Dandeson Jaja, and mid-wifing the emergence of a new monarch without litigation.
The Governor, who said he remains one of the proudest persons on earth for the success of the transition, disclosed that the late king’s stool was enmeshed in a legal battle that lasted over 27 years, and that it took the wisdom and deliberate intervention of his administration to manage the selection process to avoid another round of court cases.
He emphasized that contrary to insinuations by mischief makers who tried to politicise his absence, his government was fully responsible for the entire process from burial of the late king to the coronation and recognition.
“Our presence was not just in that process alone. Every logistics that were required, there is nobody that can say he’s the one that did it. We did it. So, that is also a key issue in the process. So, for those people who like using everything for politics, my absence was not an intentional thing; it was a call to service. So the fact that I was unable to make it doesn’t mean that I do not value, appreciate or support the process,” Governor Fubara said.
He said the true test of kingship is in the management of success, and prayed that the new reign will usher in greater development in education, healthcare and small businesses, which he said remain the only sustainable antidotes to the growing criminality among youths.
The Governor, who described Opobo as one of the most peaceful Local Government Areas in the State, charged the new king to maintain zero tolerance for criminality, to be intentional and decisive in protecting the kingdom, and not to compromise on security on the grounds of kinship.
Governor Fubara assured the monarch of the continuous support of his administration both in and out of office, while also charging the Alapu Council to guide the king and the titled citizens to redirect their purpose from mere ceremonial uniformity to initiating tangible development projects that will be visible in the kingdom within the next one year.
In an acceptance speech, the newly installed Amanyanabo of Opobo Kingdom, His Majesty King Jaja Jeki VI, pledged to build Opobo on the pillars of service, inclusion and vision, in honour of the legacy of the great King Jaja who founded the kingdom 156 years ago with trade and diplomacy.
Describing the Staff of Office as more than a symbol of authority, the monarch said it represents a sacred trust from the government and people of Rivers State to lead with justice, peace and dignity.
In a statement, Onwuka Nzechi, Chief Press Secretary to Governor Fubara, quoted the monarch to have expressed deep gratitude to God, the ancestors, Governor Fubara, the Opobo Council of Alapu, titled citizens, elders, women and youths for the confidence reposed in him to lead Opobo into its Sixth Chapter.
The new king assured the Rivers State Government that under his reign, Opobo Kingdom will remain a dependable partner for peace, development and unity of Rivers State.
News
Gunmen abduct 20 NYSC members in Imo
Gunmen have abducted 20 corps members serving under the National Youth Service Corps (NYSC) along the Owerri–Onitsha Road by Umunoha community in the Mbaitoli, Imo State, South East Nigeria.
Confirming the unfortunate incident, in a telephone conversation, the Police Public Relations Officer of the Imo State Police Command, Henry Okoye, said the corps members were reportedly travelling in a commercial bus from Ibadan, Oyo State, to different orientation camps in the South-East and South-South states when they were intercepted by the gunmen.
He said the Commissioner of Police, Audu Bosso, visited the scene for an on-the-spot assessment, while the police and other security agencies have intensified efforts to rescue the victims unhurt and unconditionally.
Okoye added that security operatives were currently combing surrounding bushes, while a Rapid Response Team (RRT) had also been deployed to track down the kidnappers and secure the safe release of the corps members.
The incident came weeks after the police said that 11 people, including an unidentified number of corps members serving under the National Youth Service Corps (NYSC), were rescued after gunmen attacked vehicles along the Aloma–Egane Expressway.
-
News2 years agoSenate to speed up conclusion of Nigeria Forest Security Service Bill
-
News1 year agoThe Many Lies Against Bashir Haske
-
News3 years agoBreaking: Tinubu’s authentic ministerial nominees
-
News3 years ago“Anytime we want to kill terrorists, President would ask us to take permission from France but they were killing our soldiers-” Niger Republic coup leader
-
News3 years ago“I’m leaving the Catholic church because Bishop Onah is oppressing me,” says Okunerere
-
News3 years agoMy nude photo leak was a mistake- lawyer Ifunanya
-
News4 months agoSee your state governor’s performance ranking
-
News3 years agoRadio Nigeria’s veteran broadcaster Kelvin Ugwu dies three months after retirement from service
