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N70,000 Minimum Wage States’ Salaries Rise By 90% To N3.8trn
The amount budgeted for personnel costs, including salaries and allowances to state civil servants, has increased from N2.036trillion spent in 2024 to N3.87trillion in the approved 2025 budget.
Although the 36 sub-national allocated a total sum of N2.8tn as salaries costs, it only paid out a total of N2.036trillion within the 12 months of 2024, a reduction of N764billion, according to its budget implementation report.
According to data obtained from the 2025 approved budget of the 36 state governments, the increase occasioned by the implementation of the newly approved N70,000 minimum wage and spiralling political appointments reflects an increase of nearly 90.23 per cent.
The approved budgets are also contained in Open States, a BudgIT-backed website that serves as a repository of government budget data.
The budget report also indicated that at least 27 states of the federation would not be able to pay workers’ salaries this year without having to wait for federal allocations from the central government.
In July 2024, President Bola Tinubu officially approved a significant increase in the minimum wage for Nigerian workers, raising it from N30,000 to N70,000.
This decision came after several months of rigorous discussions and negotiations between the government and labour unions.
However, the implementation of this wage increase has been gradual across the country, with some states still yet to adopt the new minimum wage.
In response to this delay, the Nigerian Labour Congress issued a stern ultimatum to state governments, demanding that they fully implement the new wage structure by December 1, 2024.
Despite this pressure, several states have yet to initiate the payment of the revised minimum wage, further prolonging the financial relief workers were expecting.
An in-depth analysis of the budget document revealed significant variations in personnel costs across states: 20 states saw an increase in personnel expenses exceeding 50 per cent, while 16 states experienced a more modest rise, with salary increases remaining below the 50 per cent threshold.
A further breakdown showed that Abia, Cross Rivers, Ekiti, Niger, Rivers, and Taraba states got the highest increase in its payroll, exceeding 100 per cent of its 2024 personnel cost budget. While Gombe, Osun and Ondo got the lowest salary increase percentage, scoring below 15 per cent.
In a detailed examination of the salary increases across each state, Abia approved a notable increase in its personnel costs, with an escalation from N33.045billion to N77.34billion, representing a 134 per cent increase. Similarly, Adamawa’s personnel cost rose from N48.61billion to N74.23billion, marking a 52.7 per cent increase.
In Akwa Ibom, a sharp surge from N91.74bn to N126.69bn was approved, representing an impressive 38.1 per cent growth.
Anambra state, under Governor Charles Soludo, also approved a significant rise from N34.001bn to N63.41bn, indicating an 86.45 per cent increase.
Bauchi followed suit with an increase from N42.29bn to N70.41bn, showcasing an uplift of approximately 66.5 per cent.
Meanwhile, Bayelsa saw its personnel costs climb from N60.18bn to N114.21bn, a rise of over 89 per cent, signalling an emphasis on investing in its workforce.
In Cross River, the personnel cost grew sharply from N35.02bn to N106.12bn, reflecting a 202 per cent increase, one of the highest among the states. Delta also recorded a notable surge in its expenditure from N139.999bn to N185bn, signalling a growth of about 32.5 per cent.
Ebonyi followed with an increase from N23.076bn to N36.66bn, growing by 58.9 per cent.
Edo with its leap from N74.58bn to N101.29bn, reflected a 35.8 per cent increase, while Ekiti registered a substantial rise from N30.69bn to N62.51bn, almost doubling its personnel cost.
Enugu also saw a substantial rise from N47.988bn to N70.954bn, an increase of 48 per cent.
However, Gombe stood out with a negligible decrease in personnel costs, falling from N40.52bn to N40.28bn, a small dip of just 0.6 per cent.
On the other hand, Imo saw an increase from N41.92bn to N67.4bn, showing an upward trend of 60.9 per cent.
Jigawa experienced a jump from N51.445bn to N90.73bn, an increase of 76.4 per cent, while Kaduna’s personnel costs grew by 23.4 per cent from N68.010bn to N83.94bn.
Kano, one of the largest increases in this analysis, saw its personnel costs skyrocket from N89.97bn to a staggering N150.996bn, an impressive 67.8 per cent rise.
Katsina, which saw an increase from N29.69bn to N58.62bn, experienced a growth rate of 97.6 per cent. In Kogi, the personnel budget grew from N64.798bn to N109.96bn, an increase of 69.8 per cent.
Kwara followed a similar trend, rising from N51.045bn to N69.152bn, a growth of 35.5 per cent.
The largest increase came from Lagos, which saw its personnel costs more than double, from N225.114bn to N401.12bn.
In Nasarawa, personnel costs increased from N48.704bn to N80.456bn, a 65.2 per cent rise, while Niger recorded an even larger leap, from N25.36bn to N104.301bn, reflecting a growth of 311.5 per cent. Ondo saw an increase from N75.96bn to N139.726bn, an uplift of 83.9 per cent, while Osun also registered a significant rise from N55.571bn to N102.89bn, an 85.1 per cent increase.
Oyo experienced a massive increase, with personnel costs rising from N116.207 bn to N214.116bn, an 84.3 per cent increase.
Similarly, Plateau saw its personnel expenditure climb from N38.963bn to N67.144bn, marking a 72.5 per cent increase.
Rivers State, under Governor Siminalayi Fubara, recorded a staggering rise from N167.05bn to N343.196bn, a 105.6 per cent increase.
Sokoto also saw a substantial increase, from N55.32bn to N64.711bn, a 17 per cent rise.
Taraba experienced a significant increase from N36.319bn to N95.23bn, a 162 per cent rise, while Yobe recorded a 34 per cent increase, growing from N47.95bn to N64.12bn.
Zamfara saw a moderate increase, with personnel costs rising from N34.21bn to N58.38bn, a growth of 70.7 per cent.
Meanwhile, the substantial increase in salaries and allowances across various states has introduced a new set of challenges.
With the sharp rise in personnel costs, at least 27 states of the federation now face the stark reality that they will be unable to meet their payroll obligations without relying heavily on federal allocations from the central government.
This means only 9 out of the 36 state governments of the federation can independently pay their workers’ salaries without depending on federal allocations.
This is an increase from 24 states that couldn’t pay salaries without federal allocation in 2024, according to an analysis of the state governments’ approved budgets for the 2024 fiscal year.
The states with robust internal revenue are Lagos, Abia, Benue, Enugu, Ogun, Niger Kaduna, Kwara, and Osun.
According to the analysis of the budget data, 27 states cannot fund salary payments from their internally generated Revenue and, as such, may have to rely on Federal Government allocations or borrowing from banks and related institutions.
The development also means that the respective wage bills of the affected states surpassed their various IGRs, raising concerns about workers’ productivity and state governments’ efficiency in internal revenue generation.
Speaking with The Tide’s the economist noted that the latest data further stress the need to reduce the cost of governance across the country.
Commenting, the director and CEO of the Centre for the Promotion of Private Enterprise, Muda Yusuf, noted that there are several arguments for the state’s low revenue generation and its bloated civil service workforce.
He said, “The IGR thing, first of all, we need to recognize that there are big disparities in the natural endowment of the states. Not all states are equally endowed. You know, you can’t compare a state that is a coastal state like Lagos or Delta where you have a lot of oil companies, and they pay taxes through P.A.Y.E.
“If you take a state like Jigawa or a state like Gombe or a state like Kogi, most of the businesses there are SMEs. Most of them are agricultural businesses because most of them are farmers. How much IGR can you get from these people? So what you discover invariably is that the IGR that they get in those states are only from the salaries of the workers.
President Bola Tinubu has ordered a security outreach to the hotbeds of recent killings in Plateau, Benue and Borno States, to restore peace to areas wracked by mass killings and bomb attacks.
National Security Adviser, Nuhu Ribadu, disclosed this to State House correspondents after a four-hour security briefing with the President at the Aso Rock Villa, Abuja on Wednesday.
“We listened and we took instructions from him. We got new directives…to go meet with the political authorities there,” Ribadu told reporters, adding that Tinubu directed them to engage state-level authorities in the worst-hit regions.
Director-General, National Intelligence Agency, Mohammed Mohammed; Chief Defence Intelligence of the Nigerian Army, Gen. Emmanuel Undianeye; Director-General, Department of State Services, Oluwatosin Ajayi and Chief of Staff to the President, Femi Gbajabiamila, appeared for the briefing.
The Tide’s source reports that in Plateau State, inter-communal violence between predominantly Christian farmers and nomadic herders spiralled into gory slaughter when gunmen stormed Zikke village in Bassa Local Government early on April 14, killing at least 51 people and razing homes in a single night.
In Benue, at least 56 people were killed in Logo and Gbagir after twin assaults blamed on armed herders.
Meanwhile, in Borno State, eight passengers perished and scores were injured when an improvised explosive device ripped through a bus on the Damboa–Maiduguri highway on April 12.
Ribadu explained that after an extensive briefing, intelligence chiefs received fresh instructions to restore peace, security and stability across Nigeria.
“In particular, Tinubu had ordered immediate outreach to the political authorities in Plateau, Benue and Borno States, and the defence team had gone round those States to carry out his directives and report back.
“We gave him an update on what has been the case and what is going on, and even when he was out there, before coming back, he was constantly in touch. He was giving directives. He was following developments, and we, in charge of the security, got the opportunity today to come and brief him properly for hours. And it was exhaustive.
“We listened and we took instructions from him. We got new directives. The fact is, Mr. President is insisting and working so hard to ensure that we have peace, security and stability in our country. We gave him an update on what is going on, and we also assured him that work is ongoing and continues.
“We also carried out his instructions. We went round, the chiefs were all out where we had these incidents of insecurity in Plateau State, Benue State, even Borno, these particular three states, and we gave him feedback, because he directed us to go meet with the political authorities there,” the NSA explained.
Ribadu described Tinubu as “worried and concerned,” and said he directed that all security arms be deployed around the clock.
The government, he added, believes these steps have already produced measurable improvements, even if the situation is not yet 100 per cent safe and secure.
“He’s so worried and concerned, he insisted that enough is enough, and we are working and to ensure that we restore peace and security and all of us are there. The armed forces are there, the Civil Police, intelligence communities, they are there.
“They are working there 24 hours, and we feel that we have done enough to believe that we are on the right course, and we’ll be able to be on top of things,” Ribadu stated.
The NSA emphasised that combating insecurity was not solely a Federal Government responsibility.
He stated, “The issue of insecurity often is not just for the government. It involves the subunits. They are the ones who are directly with the people, especially if some of the challenges are more or less bordering on community problems.
“Not entirely everything is that, but of course it also plays a significant role. You need to work with the communities, the local governments, and the governors, especially the governors.
“The President will continue to direct that. We should be doing that, and that’s what we are able to. We are very happy and very satisfied with the instructions and directives given by Mr. President this evening.”
In Borno State, the NSA noted that while violence had surged in recent months, the insurgents refused to accept defeat.
He warned that most recent casualties there resulted from improvised explosive devices—”cowardly” IED attacks targeting civilians—and from opportunistic raids that follow any lull in fighting.
“We are getting the cooperation of the leadership at the state level, and everybody. It’s not 100 per cent…but we are going there.
“When you are having peace and you are beginning to get used to it, if one bad incident happens, you forget the periods that you enjoyed peacefully,” he added.
He paid tribute to the “many who do not sleep, who walk throughout, who do not go for any break or holiday”—the soldiers, police and intelligence officers whose sacrifices have created the fragile calm Nigerians now experience.
“They will continue to be there,” he said, adding, “Things have changed in this country…we are on the right track and we will not relent. We will not sit down; we will not stop until we are able to achieve results.”
A Federal Government agency – the National Agency for Science and Engineering Infrastructure, has decried the low patronage of Nigerian-made products by Nigerians.
The agency identified some challenges leading to the low patronage of the local products as affordability and public perception, among others.
Speaking during a stakeholders meeting organised by the agency in Akure, Ondo State capital, yesterday, the Deputy Director of Engineering at NASENI, Mr Joseph Alasoluyi, said Nigerians preferred buying foreign goods compared to local goods.
Alasoluyi, however disclosed that the agency had trained over 50 participants in the production of hand-made products, in a bid to ensure Nigeria-made products are patronised.
He explained that NASENI was set up to promote science, technology, and engineering as a foundation for Nigeria’s development and currently operates 12 institutes nationwide to achieve its objectives.
According to him, the aim of President Bola Tinubu, who is also the overall chairman of NASENI, was to ensure high production and patronage of “our local products thereby creating employment opportunities for many.”
He said, “The idea of this programme is to interface to ensure we produce products using our indigenous technology. This is what NASENI is out for, to ensure that homegrown technologies are encouraged.
“We are out there to ensure we integrate efforts to ensure that local technology is used to develop products within the resources we have.
“ The NASENI’s ‘3 Cs’ – Creation, Collaboration, and Commercialisation – that define NASENI’s strategic mandate: Creating innovations through research, Collaborating with partners to develop and refine products, and Commercialising these solutions to benefit the economy.
“Our achievements include the development of solar irrigation systems, CNG conversion centres, building machines capable of producing up to 1,000 blocks per hour, 10-inch tablets, locally made laptops, and electric tricycles (Keke Napep) set for market launch.”
In his remarks, the Deputy Vice Chancellor of the Federal University of Technology, Akure, Prof. Samuel Oluyamo, blamed the Federal Government for not properly funding research in the varsities, also noting that many research outputs were left halfway due to lack of funding and weak linkages between research institutions and industry.
Oluyamo also queried the Federal Government’s commitment to funding research and development, saying many academic innovations remained on the shelve due to a lack of support for commercialisation and poor infrastructure.
“Until we upscale research into mass production, technological growth will remain elusive. The government is not funding research in the universities enough. Thank God for TETfund that is trying in this regime. The major interest in beefing up research in universities and research institutions is really not there,” he said.
The Director-General of the Debt Management Office, Patience Oniha, has said that Nigeria is in advanced discussions with JP Morgan to re-enter the Government Bond Index and renew investors’ confidence.
Oniha disclosed this on Wednesday at a Nigerian Investors’ Forum on the sidelines of the World Bank and International Monetary Fund Spring Meetings in Washington, D.C.
The DMO boss explained that Nigeria has enjoyed favourable credit assessment among rating agencies in recent times on the back of the sweeping reforms initiated by the Central Bank of Nigeria.
Fitch Ratings recently upgraded the Long-Term Issuer Default Ratings of seven Nigerian banks and two bank holding companies to ‘B’ from ‘B-‘, noting that the outlooks are Stable.
The affected issuers are Access Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, Guaranty Trust Bank Limited, Guaranty Trust Holding Company Plc, First HoldCo Plc, First Bank of Nigeria Ltd, Fidelity Bank Plc and Bank of Industry Limited.
The upgrades of the Long-Term IDRs of the banks followed the recent sovereign upgrade and reflect Fitch’s view that Nigeria’s sovereign credit profile has become less of a constraint on the issuers’ standalone creditworthiness, the rating agency said.
Fitch also upgraded Nigeria’s Long-Term IDRs to ‘B’ from ‘B-‘ on 11 April, a decision that reflected increased confidence in the government’s broad commitment to policy reforms implemented since its move to orthodox economic policies in June 2023, including exchange rate liberalisation, monetary policy tightening and steps to end deficit monetisation and remove fuel subsidies.
“These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks,” Fitch said.
Nigeria was removed from the JP Morgan index in 2015 ostensibly due to its deviation from orthodox monetary policies and influence of capital control in its management of foreign exchange.
Principally due to reduction in oil revenues at the time, Nigeria introduced currency restrictions to defend the naira after it failed to halt a dangerous slide with burning of dollar reserves. The bank had earlier warned Nigeria to restore liquidity to its currency market in a way that allowed foreign investors tracking the index to conduct transactions with minimal hurdles.
“Foreign investors who track the GBI-EM series continue to face challenges and uncertainty while transacting in the naira due to the lack of a fully functional two-way FX market and limited transparency,” the bank said in a 2015 note.
Nigeria was listed in JP Morgan’s emerging government bond index in October 2012, after the Central Bank removed a requirement that foreign investors hold government bonds for a minimum of one year before exiting.
The JP Morgan Government Bond Index reflects investor confidence and opens doors to billions of investment flows, making Nigeria’s proposed re-entry a positive signal to the market and investors.
Oniha explained that talks with JP Morgan were ongoing and had gained momentum in recent times due to the stability created by the FX market reforms.
“With all the reforms that have taken place, particularly around FX, we have started engaging JP Morgan again to get back into the index. We think we are eligible now,” the DMO DG said.