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.

Amada Jidda     Samuel Olusegun Adedayo     Abdulrazaq Aiyelabegan     Adesoye     Opobiyi     John Kehinde Salako     Omupo     Ibrahim Taiwo Road     Toyosi Thomas     Democracy Day     Sobi FM     Gobirawa     Ahmed Shuaib Buranga     Babatunde Ishola Babaita     Minister     Elese Of Igbaja     Code Of Conduct     Mohammed Saidu     Senior Ibrahim Suleiman     Riskat Opakunle     Ishaq Oloyede     Arinola Fatimoh Lawal     Folorunsho Alao     Abraysports FC     Tosin Saraki     Balogun Fulani     Nigeria Computer Society     Oloyede     Kayode Zubair     Inside Kwara     Sunset Workers     FOMWAN     Sheikh Alimi     Bolaji Gambari     Eruku     Yakubu Danladi     Tunde Mukaila Mustapha     Gbenga Awoyale     NIPR     National Democratic Congress     KWACOBPA     Sobi     Vasolar Consortium     Awwal Jawondo     Abubakar Ndakene     Wahab Olasupo Egbewole     College Of Education     KWATMA     Samuel Adaramola     Anilelerin     Abatemi Usman     Muhammad Fawaz Abubakar     Park     Alfa Modibbo Belgore     Abdulrazaq Sanni     Yakubu Shaaba     Adekunle David Dunmade     Maryam Nurudeen     Kwara Apc     CLAY POT     Toun Okewale-Sonaiya     Trade Lenda SME Fair     Twitter     Lawal Olohungbebe     Durosinlohun Atiku     Al-Hikmah Radio     Hajj     Funmilayo Mohammed     Ilofa     Muhammadu Gobir     Isiaka Yusuf     Ilota     IHS     Ilorin Central Mosque     Onilorin     Emmanuel Bello     Road Transport Employers Association Of Nigeria    

Cloud Tag: What's trending

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

Buari Edun     Ebola     Yahaya Abdulkareem Babaita     Kamoru Kadiri     Saadu Yusuf     Eruku     Shagari     Saliu Tunde Bello     Ishaq Salman     Vasolar-Kwara Company Ltd     Adebayo Mohammed Kamaldeen     Muhammed Aliyu     Saka Isau     Omupo     Abdulrazaq Magaji     AbdulHamid Adi     Abiodun Abdulkareem     Seed Technologies     Hussein Oloyede     Fawenu     Kwarareports.com     Ramat Oganija     Stephen Fasakin     Geri-Alimi Split Diamond Interchange     Emmanuel Olatunji Adesoye     Abdulquawiy Olododo     Yusuf Amuda Aluko     SUBEB     Saba Jibril     Zulkifli Ibraheem     Kwara Volleyball Association     Shuaib Abdulkadir     Okin Malt     Laboratory-to-Product     Boko Haram     Kwara State Internal Revenue Service     Kolade Solagberu     BECE     Hassan Oyeleke     Aliyu Adebayo     Mohammed Tunde-Jimoh     Mike Omotosho     Radio SBS     Amina El-Imam     Senate President     Afusat Nike Ibrahim     Lukman Adeloyin     Lawal Olohungbebe     Kayode Zubair     Borgu     Arik     Moses Salami     Ibikunle Ogunleye     Towobola Abdulrahman Toyin     Mohammed Lawal     Asa LGEA School     Amosa     Ajia-Bako     Seni Saraki     Tope Daramola     Abubakar Aliagan     Alfa Modibbo Belgore     Ayo Adeyemi     Raheem Adaramaja     CKNG     Amuda Bembe     Bola Iyabo Ibiyeye Adisa     Lanre Jimoh     ARMTI     Ilesha-Gwanara     Overland     Saka Adeyemo     Ileloke     Twitter     Abdulhakeem Amao     Henry Olaosebikan     Khadijat Ayoola Yusuf