Minimum Wage Increases and the Welfare of Civil Servants in Nigeria’s Fourth Republic: A Comparative Analysis of Lagos and Osun States

Abstract

This study examines the impact of minimum wage increases on civil servants' welfare within the context of Nigeria’s Fourth Republic, focusing on Lagos and Osun States. Minimum wage policies play a crucial role in addressing economic inequality and improving living standards, yet their effectiveness in Nigeria faces significant challenges. The study employs both quantitative and qualitative methods, analysing survey data from civil servants to assess the effectiveness of minimum wage policies in addressing welfare issues. A total of 400 questionnaires were distributed, with 347 valid responses returned. Quantitative analysis using descriptive and inferential techniques, alongside thematic analysis of qualitative data, reveals that while minimum wage increments aim to improve living standards, challenges such as budget limitations, inflation, and administrative inefficiencies hinder their implementation. In Osun State, economic constraints, including delayed salary payments, emerged as significant barriers, while in Lagos, higher internally generated revenue enables smoother implementation, though rising living costs erode purchasing power gains. The study concludes that barriers such as inflation, budgetary constraints, and administrative challenges eroded and limit the benefits of minimum wage and recommends regular assessments, strengthened administrative capacity, and complementary welfare programs to enhance its effectiveness.