The proposed ₦70,000 minimum wage has triggered another round of heated debate in Nigeria. The Nigeria Labour Congress (NLC) insists the amount is too low to survive on. Meanwhile, the federal government is quietly dissatisfied with the low productivity levels, especially in the public sector. But what if the true problem lies not in the amount of workers’ pay but in their method of payment?
At PoliGuard Analytics, we strongly advocate for a shift to an hourly wage system. It’s not just a fairer approach; it’s a smarter one. Here’s why
₦70,000 Per Month = ₦358.97 Per Hour
The current standard of 9 hours per day and working days of Monday through Friday makes 45 hours/week; therefore, ₦70,000 monthly boils down to:
- ₦358.97/hour
- ₦16,153.85/week
- ₦840,000/year
The flat monthly wage rewards presence rather than performance. It seems employers compensate workers regardless of whether their contributions drive significant results. This act has cultivated a culture of mediocrity, absenteeism, and minimal output, particularly in government-funded institutions where IGR (internally generated revenue) remains critically low.
The salary-wage reform strategy is not merely an economic necessity; it represents a shift in mindset, and it is long overdue.
Why Hourly Wage Works Better: Real-World Examples
1. Transparency and Accountability
At Beyond Office, our hourly wage ranges from ₦375/hour for non-skilled workers to ₦1,750/hour for senior managers. Employees are paid strictly based on hours worked and tasks delivered. This structure has:
- Eliminated “ghost workers”
- Increased staff punctuality
- Made payroll leaner and performance-driven
2. Incentive to Work Smarter and Harder
Consider this:
- Worker A on a flat salary spends 3 hours chatting or idle daily.
- Worker B, on an hourly wage, ensures they stay productive every minute to earn every naira.
The outcome? Worker B consistently delivers better results, and businesses/government agencies get value for their money.
3. Protecting Freelancers and Young Professionals
With the rise of gig work, hourly payments empower young people and freelancers who take on multiple jobs; instead of being locked into underpaying monthly contracts, they earn based on the actual hours they commit.
4. Better Workforce Planning
Let’s say a ministry employs 200 administrative officers at ₦70,000 per month; this amounts to ₦14 million monthly. However, if this ministry switches to hourly pay and evaluates actual workloads, it may only need to employ 100 officers full-time, with others working part-time. This change could save the government millions while enhancing efficiency.
The Way Forward: A Hybrid Wage Reform Strategy
Hourly wages do not necessitate the complete abandonment of salary structures. This model allows for flexibility in compensation while still providing a stable framework for employee salaries. By integrating both hourly wages and salary structures, organizations can better meet the diverse needs of their workforce. Here is a balanced model we recommend:
- Base pay (to guarantee stability)
- Hourly performance incentives
- Project-based bonuses
This hybrid model aligns wages with effort and national economic reality.
Conclusion: Nigeria Must Pay for Output, Not Occupation
We must evolve from a “monthly entitlement culture” to a performance-driven compensation culture. Hourly wage payment:
- Aligns effort with income
- Eliminates redundancy
- Empowers the youth and gig workers
- Encourages true productivity in public and private sectors
The salary-wage reform strategy is not merely an economic necessity; it represents a shift in mindset, and it is long overdue.
