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.

Yakubu Mohammed Abdullahi     Economic And Financial Crimes Commission     Babata     IEDPU     Funmilayo Zubair     Sadiq Umar     Segun Adeniyi     Unilorin FM     High Court     Balikis Jawondo     Taofik Mustapha     Hamid Bobboyi     TETFUND     Mubarak Oladosu     Wahab Olasupo Egbewole     Isiaka Gold     Ahmed Mohammed Rifun     Gbugbu     Oluronke Adeyemi     Isiaka Abdulrazak     Makama Of Ilorin     Kolo     National Union Of Road Transport Workers     Jelili Yusuf     Abdul-Rahoof Bello     Yunus Oniboki     Chief Imam Of Lafiagi     Rachael Obisesan     Baaziki Sulaiman     Third Estate     Colleges Of Education Academic Staff Union     Muritala Awodun     Michael Nzekwe     Park     Hassan Saliu     ARMTI     KWTV     Budo Egba     Wahab Issa     Oke-Odo     Afeyin-Olukuta     Elekoyangan     Alumni Association Of The Federal Polytechnic Offa     Erubu     Just Event Online     Adama Isa     Rice Farmers Association Of Nigeria     Student Learning Support Helpline     Adaramaja     Olaiya Victor Mobolaji     Roheemat Hammed     Okin Malt     Alagbado     Muslim Cementary     Young Progressives Party     Issa Manzuma     Balogun Fulani     Forgo Battery     David Adesina     Hassan Oyeleke     Yakubu Gobir     Adedayo Yusuf Abdulkareem     Ilota     Suleiman Abubakar     Tunji Olawuyi     Clara Nwachukwu     Olabimpe Olani     Olota Of Odo-Owa     Sherif Sagaya     Nigeria Computer Society     BIR     Savannah Centre For Diplomacy, Democracy And Development     Special Agro-industrial Processing Zone     Ethical College     Jimoh Olusola Imam     Kishira     Atiku    

Cloud Tag: What's trending

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

Yusuf Arowosaye     Ahmad Fatima Bisola     Lateef Alagbonsi     Saliu Mustapha     Jumoke Monsura Gafar     Alapansapa     Temi Kolawole     Kwara Metro Park     Alao Ayotunde     David Oyedepo     Adeola Abraham     HICA     Salihu Alhaji Musa     Isiaka Alikinla     Fatimoh Lawal     Hikmah AbdulKareem     March 18     MAI Akande     Kwasu     Congress For National Consensus     ASMAU PLAZA     Akeem Lawal     National Broadcasting Commission     Transition Implementation Committee     Oniwa     Al-Hikmah Radio     Babatunde Idiagbon     Yomi Adeboye     Lawal Olohungbebe     Yemi Osinbajo     Share     GANZY     Elekoyangan     Okiki     Tunji Oyawoye     Olatunji Bamgbola     Fatimat Saliu     Saheed Akinwumi     Lanre Aremu     Senate President     Amusement Park     Oniwasi Agbaye     A.E. Afolabi     General Tunde Idiagbon International Airport     Imam Gambari     Kawu Baraje     Shuaib Abdulkadir     Abubakar Ndakene     Saeedat Aliyu     Kwara 2015     Kisira     AbdulRasaq Abdulmajeed Alaro     Laolu Saraki     Tuesday Assayomo     Emir Of Ilorin     Kaiama     Amasa     Gbenga Awoyale     Joseph Daudu     Veterinary Teaching Hospital     Innocent Okoye     Raliat Islamic Foundation     Voices Of Tomorrow     Kumbi Titilope     Pakata Development Association     Dar-Al-Handasah Consultants Ltd     Ilorin Metro Park     Oba Sulaiman Asude     Ajuloopin     Kwara South     Saliu Alamoyo     Raymond Olaitan     Bisi Kristien     Shehu Salau     Erubu     Razak Atunwa     Ahmed Dankaya