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.

Javed Khan     Yahaya A Paniyaro     General Hospital, Offa     Malete     Gbadeyan Gbadura Yomi     Musibau Akanji     Idi-Ape     Naira Redesign     Oba Sulaiman Asude     Oba Abdulkadir La\'aro     Offa Poly     Abegunde Goke     Omu Aran     Ayotunde Emmanuel Alao     Raimi Iyanda     Waheed Ibrahim     Tope Daramola     Societe Generale Bank Of Nigeria     Osuwa     Special Agro-industrial Processing Zone     Abatemi Usman     COVID     Tunde Idiagbon Road     Alfa Modibbo Belgore     Oniyangi Kunle Sulaiman     Kwara South     Ilorin Talaka Parapo     Mukhtar Shagaya     Nurudeen Muhammed     Olabanji Orilonishe     Ilorin South     Elerinjare-Ibobo     Okiki     Zubair Folorunsho Erubu     Abubakar Imam     Joseph Bamigboye     Kawu Baraje     Harafat E. Mukadam     Ghali Muhammed     Ibrahim Gambari     Sheikh Ariyibi     Modibo Kawu     Code Of Conduct     Siddiq Adebayo Idowu Salawu     Kwara University Of Education     Alanamu     Shoprite     Razaq Ayobami Akanbi     Yusuf Ibitokun Sherifat     Ibrahim Abdulqadir Abikan     Tanke     Kamaldeen Ajibade     Junior Secondary School Certificate Examinations     Madawaki     Ekweremadu     Babatunde Ishola Babaita     Mohammed Kamaludeen     Doyin Group     AbdulFatai Adeniyi Dan-Kazeem     Shaaba Lafiagi     IPSAS     Mahmud Babatunde Baker     Pakata Development Association     Offorjama     Joana Nnazua Kolo     Minister     Sa\'adatu Modibbo-Kawu     First Lady     Royal FM     Shehu Salau     Bola Iyabo Ibiyeye Adisa     GAMA     IsDB     Sabo-Oke     Ezekiel Yissa Benjamin     Elelu     Garment Factory    

Cloud Tag: What's trending

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

Bashirat Bola Bello     Haruna Tambiri Mohammed     Niguel Gallando Marcias     New Model Police Station     Press Release     Isapa     Okin Biscuits     Olabode Towoju     Basic Education Certificate Examination     National Pilot     MAI Akande     Kale Ayo     Neo Mundo Ltd     Aisha Ahman Pategi     Yusuf Amuda Gobir     Lanre Aremu     Lawyers Unite Against Corruption     Majlis For Sadakah, Zakat And Waqf     Olatunde Oyeyiola     Gafaru Olayiwola Olorisade     Col. Adedipe     Waheed Ibrahim     Kunbi Titiloye     Kwara Primary Health Care Development Agency     Eleja Taiwo Banu     Yahaya Abdulkareem     Col. Taiwo     Bankole Omisore     Mohammed Yahaya Barki     Junior Secondary School Certificate Examinations     Al-Ilory     Olatunji Ayeni     Adesoye College     Buhari     Freshvine Nigeria Limited     Ibrahim Jawondo     Olaitan Buraimoh     Hydro-electric Power Producing Areas Development Commission     Hamid Bobboyi     Oju Ekun Sarumi     Kumbi Titilope     Www.Kwarareports.com     Oye Tinuoye     JUSUN     Bursary     Alabere     Islamic Development Bank     Salman Jawondo     Adeniyi Ojo     Ramadhan     Donatus Ejidike     Kehinde Boyede     High Court     Biliaminu Aliu     Iyabo Dupe Adekeye     IsDB     Ibrahim Orire     State Bureau Of Internal Revenue     Boko Haram     Ibrahim Taiwo Road     Oko Erin     Mumeen Lah     Isiaka Danmeromu     Fatimat Saliu     Shettima Of Ilorin     Emmanuel Olatunji Adesoye     Local Government Pension Board     ITP     QuickWin     NIPOGA     Esinrogunjo     Pategi     Kolo     Samuel Olusegun Adedayo     Olumide Daniel Ibitoye     Olupako     Monthly Sanitation