Appraisal of the Challenges in the Implementation of National Minimum Wage Act, 2024

Abstract

The enactment of the National Minimum Wage Act, 2024, signifies a significant advancement in Nigeria's labour
policy, with the objective of improving the economic welfare of workers. Although the Act has ambitious objectives,
it encounters substantial obstacles that impede its efficient implementation and achievement of its intended
advantages. The main problem is the disparity between the legally mandated salary and the actual socio-economic
circumstances, especially in areas with different economic situations and among firms with limited financial
resources. This study rigorously examines the difficulties by employing a doctrinal approach, scrutinizing legal
texts, statutes, and judicial judgments to assess the effectiveness of the Act's provisions and their conformity with
Nigeria's commitments to international labour standards. The research explores the legislative structure of the Act,
analyzing its methods of enforcement, the involvement of government entities, and the judicial interpretations that
influence its execution. The results suggest that although the Act is a progressive measure, its implementation is
hindered by insufficient legal provisions, ineffective administrative structures, and discrepancies in how the law is
interpreted by the judiciary. The report also highlights a discrepancy between the salary mandated by the Act and
global benchmarks, which raises concerns about whether the wage is sufficient to meet the fundamental
requirements of workers. In order to tackle these problems, the report suggests implementing legal changes to
bolster the enforcement of the Act, improve the capabilities of regulatory organizations, and regularly reassess the
minimum wage to align with economic conditions. These elements are essential for the Act to effectively enhance the
living standards of Nigerian workers and guarantee adherence to international labour responsibilities.