Edo State Governor, Godwin Obaseki, has clarified the rationale behind the substantial increase in the minimum wage for workers in the state, from N40,000 to N70,000, citing various economic factors and the government’s commitment to improving livelihoods.
Speaking on Channels Television’s Politics Today program, Governor Obaseki attributed the wage hike to recent exchange rate devaluation, economic challenges, soaring food prices, inflation, and the desire to enhance worker productivity.
Highlighting the impact of currency devaluation on workers’ earnings, Obaseki emphasized the need to address the disparity between previous wages and their purchasing power, especially in light of rising living costs.
Obaseki underscored the government’s focus on productivity, emphasizing that adequate remuneration is essential to motivate workers and boost output. He outlined measures taken by the state government to mitigate economic pressures, including fundamental reforms in public services and cost-saving initiatives such as digitalization and efficiency improvements.
Addressing concerns about the budgetary implications of the wage increase, Governor Obaseki assured that the revised budget would accommodate the adjustment, with a shift in allocations to prioritize salary payments over overhead expenses. He reaffirmed the government’s commitment to sustaining the wage increase, asserting that provisions are made in the budget to meet the new obligations.
Obaseki’s announcement of the wage increase came during the inauguration of the newly constructed ultra-modern Labour House secretariat complex for labor unions in the state, underscoring the government’s dedication to improving workers’ welfare and creating conducive working environments.
Looking ahead, Governor Obaseki pledged to assess future adjustments in line with economic realities, indicating a willingness to adapt to changes imposed by the Federal Government while ensuring the state’s financial stability.