In a recent move to support its workforce, Oyo State has raised the minimum wage to N80,000. According to Prince Dotun Oyelade, Commissioner for Information and Orientation, this increase follows recommendations from a government technical committee and has been approved by Governor Seyi Makinde.
The wage hike is aimed at boosting the welfare of workers, potentially spurring increased consumer spending in the local economy.
For SMEs, this change could signal both challenges and opportunities. While larger disposable incomes among state workers may increase demand for goods and services, local businesses could also feel pressure to review their wage structures.
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The increase aligns with Governor Makinde’s welfare wage awards of N25,000 for workers and N15,000 for pensioners, aimed at offsetting the effects of the fuel subsidy removal on household budgets.
The minimum wage update not only reflects a commitment to employee welfare but could also shift spending power across Oyo, offering potential growth opportunities for local businesses catering to state workers.
Additionally, the governor’s move to clear pensioners’ gratuity backlogs may further inject funds into the local economy, presenting a boost for Oyo’s small business landscape.
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