OPINION: Why the National Assembly Must Lead on Wage Increase. By Abdulmumin Yinka Ajia

Date: 2017-08-05

It is a good development to hear Senator Bukola Saraki's rhetoric on increasing the minimum wage in Nigeria. As an economist who have written about the pitiable state of the working poor in Nigeria and advocated for a wage increase to reflect current inflationary indices, I would like the senator to match his words with action. The idea that the legislature is waiting on the executive in order to raise the minimum wage is alien to both the presidential and the parliamentary democracies that we have adopted. Whether or not we raise the minimum wage in Nigeria falls squarely on the shoulders of the legislature and instead of Nigerian legislators working for themselves, its high time they start working for the millions of Nigerians who are still earning 18,000 Naira minimum wage that doesn't even come regularly. 

In an opinion piece almost two years ago, I made the ethical argument why the minimum wage in Nigeria should be increased to 52,000 Naira and adjusted for inflation every five years. See http://www.ilorin.info/fullnews.php?id=15758.The Nigerian Labour Congress agreed with my proposal and made a 56,000 Naira demand of the federal government. And yet even the best economists will still tell you "ceteris paribus" all things being equal. Ceteris paribus is a Latin phrase that has been embraced by economists for decades and it is premised on the assumption that all other variables except the ones under immediate consideration are held constant. 

Can we honestly say that all other variables have held constant in Nigeria since two years ago when yours truly made the case for a 52, 000 Naira wage increase? Or in the last one year since the NLC made a 56, 000 demand? The truth is that, compared to 2014, when Nigeria's gross national income was at a peak of 2980 USD (see https://data.worldbank.org/indicator/NY.GNP.PCAP.CD?locations=NG), Nigeria's 2016 GNI has fallen to 2450 USD, therefore, policy makers in Nigeria and in particular federal legislators need to look at the underlying factors behind the decrease in GNI and work towards its remedy. 

While I believe that the Nigerian worker deserves an increase in wages to bring his or her income to a living wage, there is a greater need in Nigeria today - and that is the need for the Nigerian government at all levels - to go back to paying workers their wages in a timely manner. This is where the Nigerian National Assembly has been missing over the last two years. As Nigerian public intellectuals, many of us have railed against this clear injustice and yet the National Assembly sat on its butt and did nothing about the major moral crisis of our time. 

Going back to economics, since all things have not held constant over the last few years in Nigerian economic indices, the first order of business is for the National Assembly to look into and put a stop to the practice of irresponsibly owing workers their wages in Nigeria. The National Assembly ought to be reminded that the reason for their existence is to make laws for the safety and wellbeing of Nigerians. This is a friendly reminder in case they have forgotten. 

While the National Assembly embark on a fight to get justice for the Nigerian worker, it can also simultaneously begin to look into Nigerian economic indices critically, combined with the power of the purse, the Nigerian National Assembly can then partner with all relevant stakeholders (Academia, labour unions, all tier of government, the private sector, and the civil society) to come up with a new minimum wage legislation that is couched in the existing reality of the Nigerian state. 

This will be a better route towards getting justice for the Nigerian worker and will not come across as both an abdication of responsibility and an empty political platitude. 

Dr. Abdulmumin Yinka Ajia is a managing partner and lead consultant at Clearwater Research LLC, a business analytics research firm with head office in Fort Wayne, Indiana, USA. The author can be reached at ajia01@clearwaterresearchllc.com

 

Cloud Tag: What's trending

Click on a word/phrase to read more about it.

Iyiola Oyedepo     Simon Sayomi     Saba Jibril     Mohammed Yahaya Barki     Mutawalle     Dauda Adesola     Oba Abdulrahim     Suleiman Idris     Oya State     Oro Grammar School Old Students Association     Laboratory-to-Product     Olomu Of Omu-Aran     African Democratic Congress     Kwara State Internal Revenue Service     Emir Of Shonga     Adisa Logun     Igbomina     Abubakar B.M     SUBEB     Oyedepo     Baakini     Michael Nzekwe     Adamu Atta     Kuliyan Geri     Taofeek Ibraheem     Nupe     Abdulkareem Alabi     Mohammed Khadijat Kubura     Raji AbdulRasaq     Yahaya Abdulkareem Babaita     Chartered Institute Of Personnel Management Of Nigeria     Mohammed Yisa     Adam Abdullahi Al-Ilory     A.O. Belgore     National Association Of Nigerian Students     Ghali Alaaya     Bola Ahmed Tinubu     Kwara Polytechnic     Abdulkadir Bolakale Sakariyah     YAKOOYO     Kale Bayero     Babatunde Ajeigbe     Abdulwahab Ololele     Abdulkadir Orire     Kayode Oyin-Zubair     Patience Jonathan     Inside Kwara     Laduba     ER-KANG Mining     Wahab Olasupo Egbewole     Olubukola Kifayat Adedeji     Jumoke F. Ajao     AbdulQowiy Olododo     Isin     Unilorin FM     Kayode Laro     Kwara State Television (KWTV)     Majlis For Sadaqah, Zakat And Waqf     Jimoh Akani     Maigidasanma     Yusuf Abdulkadir     Yusuf Abdulwahab     ASMAU PLAZA     Aminat Omodara     Christopher Ayeni     Sa\'adu Salau     Hydro-electric Power Producing Areas Development Commission     Ramadhan     Kola Bukoye     Damilola Yusuf     Junior Secondary School Certificate Examinations     National Party Of Nigeria     Oba Abdulraheem     Nnazua     Taofeek Sanusi     Zulkifli Ibraheem     Oladimeji Thompson    

Cloud Tag: What's trending

Click on a word/phrase to read more about it.

Balogun-Ojomu     Aishatu Ahmed Gobir     Doyin Awoyale     Salman Suleiman     Ganiyu Taofiq     Shettima     Saba Jibril     Abdulrazaq Akorede     Suleiman Rotimi Iliasu     Ahmad Fatima Bisola     Erin-ile     Muhammad Sirajo Aliyu     Kisira     Hijaab     Sunset Workers     Mamman Saba Jibril     Manzuma     Abdullahi Imam Abdullahi     Nigeria Customs Service     United Nigeria Congress Party     Salaudeen Oyewale     Adebara     Logun     Hausa     Abdullahi AbdulMajeed     Salau Kabiru Abdullahi     Universal Basic Education Commission     Balogun Ajikobi     Marufat Oladosu     Titus Suberu-Ajibola     Bayo Ajia     Student Learning Support Helpline     Sobi FM     JMK Construction Company Limited     Vasolar-Kwara Company Ltd     Wole Oke     Ibrahim Taiwo Road     AbdulGaniyu Kareem     Kanu Agabi     Sa\'adatu Modibbo-Kawu     Gwanara     Ahmad Ali     KWASIEC     National Party Of Nigeria     Col. Ibrahim Taiwo     Olateju Lukman     Ajibola Ademola Julius     Mahmud Durosinlohun Atiku     Junior Secondary School Certificate Examinations     Mukhtar Shagaya     Raymond Olaitan     Ilorin Innovation Hub     Taofik Mustapha     Femi Ogunsola     TESCOM 2025     Farouk Salim     Ekweremadu     Olatunji Bamgbola     Modupe Oluwole     New Naira Notes     Ileloke     NYSC     IFK     Adijat Adebiyi     ASKOMP     Prince Bola Ajibola     Ilorin South     Al-Ilory     Adam Abdullahi Al-Ilory     Senate President     Oyun     Haliru Dantoro     Falokun-Oja     Arinola Lawal     Baba Issa Awoye     Code Of Conduct Tribunal     Olukotun Of Ikotun