Why Edo could increase the minimum wage from ₦40,000 to ₦70,000
Godwin Obaseki, the Executive Governor of Edo State, has revealed that the recent increase in minimum wage from ₦40,000 to ₦70,000 by his administration was made possible because the state can afford it, following strategic plans initiated by the government three years ago.
Obaseki disclosed that the government was able to pay the new ₦70,000 minimum wage to its workers and fund numerous developmental projects and other programs aimed at improving the lives of the people, using savings from reducing the cost of governance.
In a statement seen by Arise News, the governor said, “I am able to pay ₦70,000 because two or three years ago, I raised an alarm that we were resorting to massive borrowings, which would be inflationary in the long run. I predicted there would be massive devaluation of our currency.”
“You will ask, if you knew this, what did you do? We knew it would translate into a demand for higher wages because of inflation, and so we said, ‘Look, let’s focus on building a much more efficient economy.’”
“Let’s focus on reducing our cost of governance. Let’s focus on training our people and getting more productivity out of them,” he concluded.
Recall that in April 2024, the governor announced the new minimum wage for Edo workers during the commissioning of the constructed Labour House in Benin, the state capital. According to him, the new wage comes into effect on May 1.
Similarly, the governor noted that the government’s investment in strengthening the state’s security architecture and overhauling the security system led to the transformation of Edo as the safest in the South-south region and one of the most secure in the country.
Obaseki said the government gained the confidence of investors, resulting in an influx of businesses, enhanced economic activities, and increased revenues for the state.
Written by Oluwatosin Ola
