MINIMUM WAGE IMPLEMENTATION IN NIGERIA: ISSUES AND PROSPECTS

 

IGBADUMHE Abaye Friday¹*, ADENIJI Adenike Anthonia², OSIBANJO Adewale Omotayo³, IMHONOPI David⁴, SALAU Odunayo Paul⁵

¹Covenant University, Ota, Nigeria, honesty_crystal@yahoo.com

²Covenant University, Ota, Nigeria, anthonia.adeniji@covenantuniversity.edu.ng

³Covenant University, Ota, Nigeria, adewale.osibanjo@covenantuniversity.edu.ng

⁴Covenant University, Ota, Nigeria, david.imhonopi@covenantuniversity.edu.ng

⁵Covenant University, Ota, Nigeria, odunayo.salau@covenantuniversity.edu.ng

*Corresponding Author

 

Abstract

The purpose of this paper is to explore minimum wage implementation in Nigeria, the contending issues and prospects. The paper employed a systematic and analytical review of literature through documentary sources such as books, journals, reports and online sources with the use of content analysis technique. The review also involves data and documents from government agencies, reports and previous works on wages, budgets and public finances. Budget data covering seven (7) months (Jan – July 2017) were obtained from the National Bureau of Statistics. Reviewed literature shows that the state governments’ inability to implement minimum wage is due to reduction of Federal statutory allocation to the states and the states’ inability to effectively engage in internally generated revenues. A conceptual model for alternative sources and sourcing of revenue was developed. The paper therefore recommends that the state governments should explore alternative sources of revenue. They should be allowed to negotiate and fix minimum wage base on their ability to pay. Also they are encouraged to reorder their priorities and reduce the many frivolous expenses that eat deep into their annual budgets.

Keywords: minimum wage, implementation, state government, civil servants