Seven months after contentious negotiations, the Federal Government has finally commenced payment of the N70,000 minimum wage, bringing relief to over 1.2 million civil servants across Nigeria. Starting with the September 2024 salaries, public servants at all levels of the federal civil service will benefit from the new wage structure, following a directive signed by the Accountant-General of the Federation, Dr. Oluwatoyin Madein.
The new wage is a significant outcome of talks between the government and labor unions, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), which have long advocated for a more livable wage in light of rising inflation and economic hardship.
Documents from the National Income, Salaries, and Wages Commission outline the new salary structure under the Consolidated Public Service Salary Structure (CONPSS). The following are the annual earnings for public servants based on their grade level:
- Grade level 1 officers: N930,000
- Grade level 2 officers: N934,160
- Grade level 3 officers: N937,713
- Grade level 4 officers: N950,243
- Grade level 5 officers: N973,123
- Grade level 6 officers: N1,041,786
- Grade level 7 officers: N1,277,667
- Grade level 8 officers: N1,479,276
- Grade level 9 officers: N1,641,226
- Grade level 10 officers: N1,806,041
For senior civil servants, the annual earnings are even higher:
- Grade level 12 officers: N2,007,152
- Grade level 13 officers: N2,182,637
- Grade level 15 officers: N2,358,936
- Grade level 16 officers: N3,611,689
- Grade level 17 officers (Permanent Secretaries): N6,918,560
Public servants can expect incremental salary increases based on their step within each grade level. For instance, a Grade level 1 officer at step 2 will see their annual salary rise to N935,585, while those who reach step 15 will earn N1,008,209.
Speaking on the implementation, Director of Press at the Office of the Accountant-General, Bawa Mokwa, confirmed, “The new minimum wage payment begins today (Thursday) for this month’s salary. Civil servants should expect their payment alerts soon.” Some civil servants have already started receiving their new payments, sparking both relief and cautious optimism among the workforce.
The September salary adjustment impacts 1,236,824 workers across federal Ministries, Departments, Agencies, the Armed Forces, Paramilitary units, and Federal Universities. The revised wage structure follows President Bola Tinubu’s signing of the minimum wage bill into law on July 29, 2024. The government and labor unions have hailed the move as a crucial step toward alleviating the economic challenges faced by Nigeria’s workforce.
However, while many civil servants are welcoming the increase, economists and financial experts warn of potential long-term effects on the nation’s economy. The Federal Government is projected to spend a staggering N334.93 billion monthly on the new wage bill, amounting to N4.019 trillion annually. This massive increase in expenditure is expected to put pressure on government revenues, especially as Nigeria grapples with dwindling oil revenues and mounting debt obligations.
In an attempt to meet this financial commitment, the Federal Government has already begun generating additional revenue, though the move has affected the revenue allocated to states. During the August Federation Account Allocation Committee (FAAC) meeting, several states reported reduced revenue disbursements, sparking concerns over how state governments will meet their financial obligations, including salary payments.
The revised wage also includes a 35% and 25% salary adjustment for workers in specialized sectors, such as those under the Consolidated Research and Allied Institutions Salary Structure (CONRAISS) and the Consolidated Paramilitary Salary Structure (CONPASS).
In addition, the Federal University Teaching Hospital in Wukari, which employs 239 staff, has been allocated N52.32 million to accommodate its payroll under the new structure.
While the wage increase represents a victory for civil servants, it remains to be seen how Nigeria’s economy will adjust to the higher wage bill and whether the government can sustain the financial burden without further impact on public services or state budgets. The coming months will likely test the government’s ability to balance fiscal responsibility with the growing demands of its workforce.
