Thursday, 25 July 2024 11:30

Akpabio's Misstep: Not All Employers Bound by ₦70,000 Minimum Wage

Senate President Godswill Akpabio has made an error in his statement regarding employers affected by the new National Minimum Wage approved by President Bola Tinubu. Last Tuesday, the Senate and House of Representatives passed the new minimum wage bill, which amends two key issues in the National Minimum Wage Act 2019. The legislation increases the minimum wage from N30,000 to N70,000 and shortens the review period from five to three years.

Speaking after the bill's passage, Akpabio claimed that Nigerians cannot pay domestic workers less than N70,000. He stated, "The bill says that if you're a tailor and employ an additional hand, you cannot pay them below N70,000. If you're a mother with a newborn and hire a housemaid, you cannot pay that housemaid below N70,000." He emphasized that this applies to all employers, including those hiring drivers or gatemen.

However, Akpabio's remarks sparked controversy on social media, with many questioning his claim. A review of the National Minimum Wage Act 2019 by The Cable reveals that not all employers are obligated to pay the minimum wage. Section 3 (1) states that every employer with 25 or more employees must pay the national minimum wage. Section 4 exemptions include:

- Part-time workers
- Commission or piece-rate workers
- Establishments with fewer than 25 employees
- Seasonal workers (e.g., in agriculture)
- Workers on vessels or aircraft subject to merchant shipping or civil aviation laws

Verdict: Akpabio's claim that all employers, including those hiring maids or gatemen, must pay N70,000 minimum wage is false. The National Minimum Wage Act 2019 provides exemptions for certain employers and employees.



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