In the midst of growing economic challenges and rising inflation across Nigeria, many state governments were under increasing pressure in 2025 to revise their minimum wage structures. One state that rose boldly to this challenge was Kogi State. Under the administration of Governor Ahmed Usman Ododo, the state government initiated a historic review of its wage system, resulting in a significant upward adjustment of the minimum wage for civil servants.
This blog post takes a deep dive into the new wage regime for Kogi State workers, the government’s efforts to support civil servants, and the broader implications of these policies on the state’s economy and public service sector.
Background: The Need for Wage Reform
Prior to 2025, civil servants in Kogi State operated under a salary structure that no longer reflected the true cost of living. Rising prices, transportation costs, housing, and essential commodities had all become unaffordable on the old ₦30,000 minimum wage. Nigeria’s inflation rate had eroded the purchasing power of average workers, making wage reform not just necessary but urgent.
As civil servants clamored for change, the federal government led the way by reviewing and updating the national minimum wage. The announcement of ₦70,000 as the new national benchmark spurred many state governments into action. Kogi State was among the early adopters, going a step further by introducing a ₦72,500 minimum wage—exceeding the federal recommendation.
The New ₦72,500 Minimum Wage: A Bold Move
In a landmark decision, Governor Ododo’s administration officially approved ₦72,500 as the new minimum wage for civil servants across the state. The announcement came after weeks of consultations with labor unions, civil service heads, and budget experts. Unlike some other states that delayed or hesitated, Kogi moved swiftly to implement the new wage.
This bold move signaled the government’s dedication to improving workers’ lives. The increase not only applied to entry-level workers but also triggered consequential adjustments across all salary grades, ensuring that middle and senior-level staff also enjoyed meaningful increases.
Wage Breakdown Across Grade Levels
Although exact figures vary by cadre and years of service, a simplified breakdown of the new structure might look like this:
| Grade Level | Estimated Salary (₦) |
|---|---|
| GL 01 | 72,500 |
| GL 02 | 85,000 |
| GL 03 | 95,000 |
| GL 04 | 110,000 |
| GL 05 | 125,000 |
| GL 06 | 145,000 |
| GL 07 | 165,000 |
| GL 08 | 190,000 |
| GL 09 | 215,000 |
| GL 10 | 240,000 |
| GL 12 | 275,000 |
| GL 14 | 320,000 |
| GL 15 | 375,000 |
| GL 16 | 430,000 |
| GL 17 | 500,000 and above |
The adjustment ensured that those further along in their careers were not left out. It also fostered fairness and motivation throughout the workforce.
Tax Reliefs: More Money in Workers' Pockets
One of the most impactful policies that complemented the wage increase was the introduction of a one-year tax relief for all civil servants in the state. Specifically, the administration suspended the Pay-As-You-Earn (PAYE) deductions and other statutory deductions that typically reduced monthly salaries. This policy took effect in October 2024 and was extended into 2026 due to overwhelming support from workers.
This tax holiday gave workers a much-needed financial buffer, allowing them to better cope with the high cost of living. It also helped civil servants redirect funds toward critical needs like school fees, healthcare, and housing.
Additional Welfare Measures for Civil Servants
Governor Ododo’s administration understood that salary increments alone would not fully address the economic pressure on workers. As such, the government rolled out several complementary welfare policies aimed at boosting morale and service delivery. These included:
1. Timely Payment of Salaries
The administration made prompt payment of salaries a top priority. Delayed salaries had previously demoralized workers and led to reduced productivity. Since the new administration came on board, civil servants received their paychecks on or before the end of each month.
2. Retirement Age Extension for Health Workers
Recognizing the critical shortage of healthcare professionals in the state, the government increased the retirement age for health workers from 60 to 65 years. This allowed the state to retain experienced personnel and reduce the gap in healthcare service delivery, especially in rural communities.
3. Infrastructure Support
To further ease working conditions, the government approved the construction of water facilities and improved sanitation within public offices. The State Secretariat in Lokoja, for example, benefitted from a water project that now serves both government workers and nearby residents.
4. Promotion and Career Advancement
There was also a renewed emphasis on promotions based on merit and years of service. Stalled promotions had long been a concern for many workers, leading to frustration and reduced performance. Under the current administration, the government ensured that promotional backlogs were cleared and deserving staff were elevated.
Labor Union Response: Commendation and Cooperation
During the 2025 Workers’ Day celebration, labor unions across Kogi State commended Governor Ododo for his pro-worker policies. In a rare show of unity, the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and Joint Negotiation Council (JNC) jointly presented the governor with an Award of Excellence in recognition of his outstanding leadership and support for workers’ welfare.
The unions praised the state for being proactive in wage reform and called on other states to emulate Kogi’s example. They also expressed readiness to cooperate with the government on further policy development, ensuring continued harmony and productivity.
Implications for the State’s Economy
While some critics initially questioned the sustainability of the new wage structure, the government provided assurances that the implementation was based on a careful review of the state’s internally generated revenue (IGR) and federal allocations. Through strategic financial planning, the state aims to sustain the wage increment without accruing new debt.
In fact, the wage reform is expected to stimulate the local economy. With more disposable income, civil servants can spend more on goods and services, boosting local businesses and creating employment opportunities. The policy also enhances the state’s image as a responsible employer and may help attract more professionals to its workforce.
Final Thoughts
The decision by the Kogi State government to implement a ₦72,500 minimum wage for civil servants in 2025 is a milestone in the journey toward better governance and economic justice. More than just a pay raise, it reflects a government that listens, plans carefully, and delivers.
By pairing the wage increase with tax reliefs, infrastructure improvements, and public sector reforms, the administration of Governor Ahmed Usman Ododo has shown that it is possible to prioritize workers without compromising fiscal responsibility.
As Nigeria continues to grapple with inflation and fiscal constraints, the Kogi example stands out as a model for states seeking to balance economic realities with the need to improve the lives of their public servants.
