In what appears to be a bold decision, the Imo State Governor, Hope Uzodinma, has approved a new minimum wage of N104,000 for workers in the state civil service making the state to be the first to raise the minimum wage to that level.
The Federal government in July 2024,approved a N70,000 minimum wage for workers. A few states have raised wages above the Federal Government benchmark to N85000, while about 20 states had yet topay the new minimum wage.
Uzodinma made the announcement late Tuesday during a meeting with leaders of various labour unions at the Government House in Owerri. The approval marks a significant increase from the previous N76,000 minimum wage.
The governor further announced that medical doctors in the state will also see their minimum wage rise from N215,000 to N503,000, while lecturers in tertiary institutions will now earn N222,000, up from N119,000.
He noted that other categories of workers will also benefit from similar adjustments.
Uzodinma explained that his administration had to respond to the economic realities faced by citizens since he assumed office in 2020, ranging from insecurity and the COVID-19 pandemic to hardship caused by subsidy removal and wage disputes.
“There is no way any government will do well if it doesn’t have a friendly and cordial relationship with the organised labour.
“When workers are paid well, productivity rises, families are happier, and the local economy grows.
“This is our way of investing in Imo people. Government believes in stimulating political and economic activities, carrying bureaucrats along, and making sure that workers’ welfare was highly respected,” he said.
Uzodinma said that the state Internally Generated Revenue (IGR) had grown from N400 million to over N3 billion monthly.
According to him, in 2020, we were receiving federal allocations between N5 billion to N7 billion, but has increased to N14 billion.
On debt management, Uzodinma revealed that the state’s debt profile had dropped from N280 billion in 2020 to less than N100 billion, stressing that this financial turnaround made the wage increase possible.
“In 2020, the state recorded a debt profile of over N280 billion but has reduced to less than N100 billion,” he added.
The governor further stated that his administration had invested heavily in rebuilding collapsed infrastructure, particularly roads, and had strengthened security operations across the state. He also noted that reforms in the health sector, including a health insurance scheme and upgraded facilities, were part of his commitment to improving citizens’ welfare.
He added that the state government would begin payment of the final batch of N16 billion gratuity owed to pensioners on August 27, describing it as another step toward clearing the backlog of workers’ entitlements.
Uzodinma credited President Bola Tinubu’s removal of fuel subsidy as a policy that increased allocations to sub-national governments, insisting that the responsibility now lies with governors to ensure the benefits reach ordinary citizens.
In his remarks,the State Chairman of the Nigeria Labour Congress (NLC), Uchechigemezu Nwigwe, described the wage increase as “a victory for the entire workforce in the state”.
“Today, no worker in Imo can say the governor has not been fair to us. He has not only rescued us from economic hardship but also placed Imo among the states paying the highest minimum wage,” Nwigwe said.
Nwigwe said Uzodinma not only rescued the workers from the economic challenges, but had made the state one of the highest in payment of minimum wage.
The state Chairman of Trade Union Congress (TUC), Uchenna Ibe, also lauded the governor for his “strong political will in taking up strong projects, including the increase in minimum wage.”
