Nigeria’s long-standing wage crisis is now a thing of the past as increased government revenue and recent fiscal reforms have strengthened states’ ability to pay salaries, according to the Convener of the Bola Ahmed Tinubu Ideological Group (BAT-IG), Honourable Bamidele Atoyebi.

Atoyebi stated that the removal of petrol subsidy under President Bola Ahmed Tinubu has significantly boosted revenue allocations, enabling state governments to meet wage obligations without resorting to borrowing, a persistent challenge in previous administrations.

Monthly disbursements from the Federation Account Allocation Committee increased from an average of N620 billion before 2023 to over N1.09 trillion after the policy change, he said.

In 2024 alone, a total of N28.78 trillion was shared among the three tiers of government, representing a 79 percent increase compared to the previous year.

This surge in revenue supported the implementation of a new national minimum wage of N70,000 approved in July 2024. Atoyebi argued that unlike past wage increases, which often strained state finances, the current adjustment is backed by improved liquidity.

He noted that senior government officials, including Senate President, Godswill Akpabio, have indicated that no state currently relies on borrowing to pay salaries, marking a departure from decades of fiscal strain.

The article traces Nigeria’s wage challenges through successive administrations since 1999. Under President Olusegun Obasanjo, the minimum wage rose from N3,000 to N7,500, but many states struggled to meet obligations due to weak revenue base. Reports at the time indicated that more than a dozen states faced debt pressures, while university strikes disrupted academic calendars for extended periods.

During the tenure of Umaru Musa Yar’Adua, efforts to review the wage structure began with the inauguration of a tripartite committee in 2009. However, his death in 2010 stalled the process, leaving underlying fiscal challenges unresolved.

Under President Goodluck Jonathan, the minimum wage increased to N18,000. Despite this, many states accumulated salary arrears, with some reportedly owing workers for up to a year. The federal government intervened with a N338 billion salary support facility, which critics described as a temporary measure rather than a structural solution.

The administration of President Muhammadu Buhari introduced bailout packages totaling over N1.75 trillion to assist states facing fiscal crises. While these interventions enabled the adoption of a N30,000 minimum wage in 2019, they also increased subnational debt levels.

Atoyebi emphasised that beyond wages, the current administration has introduced measures aimed at reducing the social impact of financial instability. One such initiative is the Nigerian Education Loan Fund, designed to provide students with access to funding for higher education and reduce dependence on household income for school fees.

He also pointed to the government’s commitment to stabilising the academic calendar, noting that recent agreements with university unions have reduced disruptions caused by strikes.

In terms of infrastructure, the ongoing Lagos-Calabar Coastal Highway was cited as an example of a shift toward long-term economic development. The project is expected to enhance connectivity and stimulate economic activity along Nigeria’s southern corridor.

Atoyebi framed the current period as a transition from what he described as “phantom wage increases” and debt-driven interventions to a revenue-backed fiscal system. He acknowledged that challenges remain but argued that the foundation for sustainable wage payment has been established.

The article combines personal experience with broader economic analysis, recalling instances of salary delays in the early 2000s that affected households and access to education. It concludes that recent reforms may signal the end of a cycle in which workers often went unpaid while governments depended on federal bailouts.

Honourable Bamidele Atoyebi, the convener of the Bola Ahmed Tinubu Ideological Group (BAT-IG), is also the publisher of Unfiltered and Mining reports.