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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.
The Mayor of Housing, My-ACE China, has teamed up with a renowned hospital group in Port Harcourt, the Meridian Hospitals, which is in partnership with the Pilgrims Health Foundation, to carry out a one-day medical outreach last Tuesday.
The free treatment scheme took place at Oromenike Government Girls Secondary School in D-Line, Port Harcourt, with over 100 persons accessing free treatments, including free eye-glasses and booking for eye surgeries.
Other areas of treatment included general health consultations and treatment; blood pressure and sugar level testing; malaria testing and treatment; free prescriptions; preventive health talks focusing on hygiene, maternal health, and nutrition.
The scheme was conducted under the theme: ‘Bringing Healthcare to the Community.’
Newsmen who visited the venue of the scheme found that enthusiastic beneficiaries had thronged the area as early as 7a.m. After setting up, the medical team began attending to the patients.
Mr. Jerry Onwuso, a 63-year-old patient, who was first to see eye doctors and got eye glasses and drugs, told newsmen that he was pleased with the medical intervention.
He made it clear he did not pay any money to get all the treatments and glasses, and pleaded that the scheme be sustained.
Another patient, Loveth Sam, expressed satisfaction with the scheme and appealed to the sponsors to continue to increase the benefits.
Throwing some light on the scheme, Mr. China said he worked in Meridian Hospitals as a Lab. Scientist 19 years ago, but resigned because he could not bear to see patients struggling for life because they had no money to pay for treatment.
He said he came back to help extend free medical treatment to the less privileged.
Sources said China was always having issues with the hospital authorities when he would insist on critical patients being allowed to be treated first, with or without money.
Years later, China, who now goes by a brand name, the Mayor of Housing, returned to the Meridian Hospital headquarters to support free medical scheme.
He also went the next day to the headquarters of Meridian, after the one-day medical outreach, to give cash gifts and palliatives to workers he met when he worked there but had remained in service since he left.
He encouraged them to continue to give their all to humanity through the hospital. The Mayor of Housing called most of them by name and a cloud of emotions descended on them during the reunion.
Appreciating the gesture, the Founder and Chief Medical Director, Dr. Iyke Odo, said China had always manifested hard-work, ambition, and impulsive giving.
According to him, the then young bright boy was full of humanity, kindness, love, and made friends easily, adding that “not everybody that gives is a giver. The difference is that givers are given to give.”
Dr. Odo used the opportunity to call on governments to review Nigeria’s health insurance system and make it work in Nigeria to save lives.
He said it was sad watching critically sick persons abandoned because they did not have money for treatment.
He also condemned harsh tax and electricity tariffs whereby facilities like his now pay N12 million instead of N500,000 few years back.
He wondered why hospitals were being made to pay tariffs like oil companies, citing many other countries where medical facilities were placed on low rates and tariffs so they could charge moderate fees from patients.
The Renewed Hope Initiative in conjunction with the Rivers State Government has empowered 500 elderly citizens in Rivers State with financial support of N200,000 each.
The empowerment programme was part of activities to celebrate the third anniversary of the Renewed Hope Initiative Elderly Support Scheme RHIESS, a social investment policy initiated by the First Lady of the Federal Republic of Nigeria, Senator Oluremi Tinubu.
Speaking at the event which held at the Government House, Port Harcourt, recently, under the theme, ‘Finding Joy in Old Age,’ Senator Tinubu said the gesture which has become traditional since 2023 was a mark of gratitude in recognition of the invaluable contributions of the senior citizens to nation building.
The First Lady who was represented by the wife of the Rivers State Governor and State Coordinator of the Renewed Hope Initiative, Lady Valerie Fubara, said the scheme was to “support two hundred and fifty (250) vulnerable elderly citizens aged 65 and above in all the 36 states of the federation, the Federal Capital Territory, and veterans from the Defence and Police Officers’ Wives Association (DEPOWA) totalling 9,500 selected beneficiaries across the nation.
She urged the beneficiaries to engage in activities that will make them find joy in old age.
“I encourage you to continue playing your part by staying healthy and active, nurture both your body and mind through regular exercise and meaningful engagement,” Senator Tinubu advised.
On her part, Lady Fubara said the State Government through the magnanimity of the governor, Sir Siminalayi Fubara, has increased the beneficiaries of the programme from 250 to 500.
She restated the commitment of the State Government towards provision of social welfare and improving the standard of living of the elderly in the State.
Also speaking, the Executive Secretary, Rivers State Contributory Health Protection Programme (RIVCHPP), Dr Vetty Agala, said the State Government has through the Health4allrivers Initiative, introduced free medical care for senior citizens in the State, in line with the Renewed Hope Initiative.
