In 2025, the Ondo State Government took decisive steps toward enhancing the welfare of its workforce by approving and implementing a new minimum wage for civil servants. This bold initiative, led by Governor Lucky Orimisan Aiyedatiwa, marks a significant departure from the previous wage structure and aligns with broader national efforts to address economic challenges, inflation, and rising living costs.
The new minimum wage for civil servants in Ondo State was pegged at ₦73,000, surpassing the national benchmark of ₦70,000 introduced by the Federal Government of Nigeria in 2024. This landmark wage reform is part of the state's commitment to strengthening public service delivery through fair remuneration and improved working conditions.
Understanding the Minimum Wage Policy in Context
To understand the importance of this policy shift, it is necessary to consider the national developments that preceded it. In 2024, the Federal Government increased the national minimum wage from ₦30,000 to ₦70,000 to reflect the changing economic realities and to cushion the effects of inflation on Nigerian workers. States across the country were expected to follow suit, and Ondo State became one of the early adopters of this reform.
However, rather than merely comply with the ₦70,000 minimum standard, the Ondo State Government went a step further by approving a slightly higher figure of ₦73,000. This move, which took effect from November 2024, signals the state’s resolve to stand out in its treatment of civil servants.
The ₦73,000 Minimum Wage Implementation
The approval of the ₦73,000 minimum wage followed rigorous negotiations between the Ondo State Government and organized labour unions, including the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC). These negotiations were characterized by mutual respect, shared goals, and a commitment to improving the well-being of workers.
The new wage structure was officially announced in October 2024, with civil servants beginning to receive their updated pay in November 2024. The government also released an updated salary table to provide clarity and transparency regarding the new pay structure across different grade levels.
Salary Breakdown by Grade Level
In the civil service system, employees are classified by Grade Levels (GL), ranging from GL 01 to GL 17. The new salary structure implemented in Ondo State is progressive, ensuring that employees across different grades benefit proportionately. Below is a general breakdown:
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GL 01 – GL 06: ₦73,000 to ₦120,000
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GL 07 – GL 09: ₦130,000 to ₦160,000
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GL 10 – GL 14: ₦170,000 to ₦210,000
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GL 15 – GL 17: ₦220,000 to ₦250,000
This breakdown indicates a structured and equitable distribution that rewards experience, qualifications, and responsibility.
Allowances and Benefits
In addition to the base salary, Ondo State civil servants are entitled to a range of allowances and benefits that contribute significantly to their total compensation package. These include:
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Housing Allowance: Provided to help civil servants cope with accommodation expenses, particularly in urban centers.
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Transport Allowance: Designed to assist with the cost of commuting to and from work.
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Medical Allowance: Covers part of the medical expenses of employees and their immediate families.
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Leave Allowance: Given annually to support workers during official vacation periods.
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Hazard Allowance: Applied to roles that involve physical risk or challenging conditions.
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Uniform Allowance: Offered to employees in roles that require the regular use of official uniforms.
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Training Allowance: Supports ongoing professional development and attendance at workshops or courses.
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Responsibility Allowance: Paid to civil servants who hold supervisory or managerial roles.
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Duty Tour Allowance (DTA): Recently reviewed to better compensate officers sent on official assignments outside their primary duty stations.
These allowances ensure that civil servants are not only paid a fair base wage but are also supported in meeting various work-related and personal expenses.
Government Commitment to Welfare
One of the key components of Ondo State’s civil service reform in 2025 is its strong emphasis on employee welfare. The administration of Governor Aiyedatiwa has consistently prioritized staff promotion, prompt salary payments, and the resolution of outstanding salary arrears.
In 2024, the state cleared several months of arrears owed to civil servants and committed to paying off the remaining balance in 2025. This move restored confidence among workers and signaled a new era of transparency and accountability in the state’s public finance management.
Promotion and Career Development
Another major reform introduced alongside the wage increase is the approval of promotions and conversions for civil servants who sat for the 2024 promotion examinations. By March 2025, thousands of civil servants had been promoted or reassigned to more suitable roles based on their qualifications and years of service.
This focus on merit-based advancement reflects the administration’s commitment to a performance-driven civil service and is intended to boost morale and productivity.
Pension Reform and Post-Retirement Benefits
Ondo State continues to implement the Contributory Pension Scheme, under which both the employer and employees contribute to the workers’ retirement fund. This scheme is aimed at ensuring that civil servants have access to sustainable pensions upon retirement.
In addition to regular contributions, the government has set up a special task force to address pending gratuity and pension arrears. As of 2025, the state has paid off several months of pension arrears and is on track to complete the balance within the year.
Stakeholder Reactions
The decision to raise the minimum wage and improve conditions of service has been met with widespread approval from labour unions, civil society organizations, and the public at large. Union leaders have commended the governor for taking concrete steps to improve workers’ lives rather than paying lip service to labour demands.
Civil servants in Ondo State have expressed satisfaction with the reforms, stating that the new wage structure has brought financial relief, especially amidst the prevailing economic challenges in the country.
Challenges and the Way Forward
Despite the progress made, the implementation of the new minimum wage has not been without challenges. The government faces increased expenditure on personnel costs, which requires careful financial planning to sustain. Moreover, fluctuations in federal allocations and Internally Generated Revenue (IGR) can pose a threat to consistent salary payments.
To address this, the state government is exploring revenue diversification strategies, including investments in agriculture, solid minerals, and tourism. These efforts aim to boost the state's economy and ensure that the wage reforms are financially sustainable.
Conclusion
The ₦73,000 minimum wage implemented in Ondo State in 2025 represents a landmark achievement in public sector reform. By exceeding the national benchmark, the government has shown that it values the contributions of its civil servants and is willing to invest in their welfare.
Through structured salary upgrades, comprehensive allowances, prompt promotions, and pension reform, the Ondo State Government has set a high standard for other states to emulate. While challenges remain, the path taken by the administration promises a more efficient, motivated, and satisfied workforce capable of driving development in the state.
The future of the Ondo State civil service looks bright, provided that the government remains committed to reforms, transparency, and sustainable financial practices.
