Edo State Governor, Godwin Obaseki, has explained the rationale behind his decision to increase the minimum wage in the state to N70,000, a significant increase from the previous N40,000.
According to Obaseki, the move was necessary to reflect the current economic realities in the country, including the depreciating value of the naira and the rising cost of living. He noted that despite the increase, the actual value of the minimum wage has decreased over the years due to inflation and exchange rate fluctuations.
The governor stated that in 2011, the minimum wage of N18,000 was equivalent to $120, while in 2022, the N40,000 minimum wage was equivalent to $96. With the current exchange rate, the new N70,000 minimum wage is equivalent to just $55.
Obaseki emphasized that the increase was aimed at boosting productivity and motivating workers to produce more, rather than just paying a nominal salary. He also highlighted that the state government has implemented measures to mitigate the impacts of the harsh economy, including digitization, which has saved the state money that will be used to pay salaries.
