Governor Godwin Obaseki of Edo State has provided an explanation for the decision to raise the state’s minimum wage to N70,000, indicating that this move is in line with the nation’s current economic situation.
The declaration of the new N70,000 minimum wage by Obaseki has ignited a nationwide conversation. He pointed out that due to the naira’s diminishing value and the escalating cost of living, it was imperative to revise the minimum wage for the state’s employees.
“In 2011, when the minimum wage was N18,000, the exchange rate was N160/$, so effectively workers in Edo State were taking home about $120 as minimum wage.
“Today, in 2024, with the N70,000 minimum wage at the current exchange rate of N1,257/$, what they are taking home is $55, which is less than 50 per cent of what they were earning about a year ago,” Obaseki said on Channels Television’s Politics Today.
Obaseki emphasized that the focus is on productivity, with the goal of providing workers with sufficient wages to boost their performance, rather than settling for paychecks that fail to inspire effective production.
He recognized the difficulties brought on by the elimination of the fuel subsidy and the liberalization of the currency, which have led to a significant rise in living expenses and inflation rates hitting a 28-year peak of 33.20 percent.
To mitigate the effects of these severe economic conditions, Obaseki mentioned that his administration was compelled to implement the new minimum wage for Edo State workers.
He also shed light on the efforts to modernize work procedures and slash governmental costs, reallocating the savings to salary payments.
“We don’t spend [so much] money on stationery and all those costs used to run the government,” he remarked, mentioning that they have also looked into alternative energy sources to reduce energy expenditures.
“Those savings, I use them to pay salaries,” he affirmed.
