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.

Umar Ayinla Saro     Chikanda     Segun Olawoyin     Isiaka AbdulRazaq     Ibikunle Ogunleye     Kale Bayero     Salaudeen Oyewale     Kwasu     M.Y. Abdulrahaman     Samuel Olusegun Adedayo     Dumagi     Bature Bello     Abubakar Lah     Saba Jibril     Curfew     Ezekiel Yissa Benjamin     Olusegun Adeniyi     Yakubu Mohammed Abdullahi     Isin     Kwarareports.com     Yinka Aluko     Ahmed \'Lateef     Abdulkarim Adisa     Kwara Apc     Alabe     Rice Farmers Association Of Nigeria     Ishaq Abdulkarim     Baaziki Sulaiman     Makama     Salihu S. Yaru     Umar Bayo Abdulwahab     Baba Idris     Sherif Shagaya     Olokoba     Ilorin Airport     LEAH Charity Foundation     Idris Amosa Saidu     Olajumoke Monsura Gafar     Binta Abubakar-Mora     Modupe Oluwole     Saraki     SWAN     Olubukola Kifayat Adedeji     Idris Garba     Gambari     TESCOM 2025     Okin Biscuits     National Democratic Congress     Colleges Of Education Academic Staff Union     Ajayi Okasanmi     Mustapha AbdulGaniyu     Ibrahim Sulu Gambari     Bello John Olanrewaju     Eleja Taiwo Banu     Roheemat Hammed     3MTT     Forgo Battery Company Limited     GANZY     Amosa     International Vocational Centre     Kwarareports     Raheem Adaramaja     Mashood Abdulrafiu Agboola     Chief Imam Of Offa     Yusuf Badmus     Salihu Jibril Garbi     Soffiyyallah Kamaldeen     Muhammad Akande Olarewaju Odunade     Kayode Yusuf     Femtech     Abdul-Rahoof Bello     Bamidele Aluko     Rebecca Olanrewaju     JAAC     Ilorin Like-Minds     Alaaya     Clement Yomi Adeboye    

Cloud Tag: What's trending

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

Alabi Olayemi Abdulrazak     Musibau Akanji     Junior Secondary School Certificate Examinations     Bola Iyabo Ibiyeye Adisa     Aminat Ahmed     Isiaka Yusuf     Ajike People Support Centre     Kulende-UITH     Centre For Peace And Strategic Studies     Wale Oladepo     Akorede     Ola Falade     Toyin Saraki     Idris Garba     Nigerian Army     NITDA     Law School Scholarship     Maja     Yusuf Lawal     Adedayo Yusuf Abdulkareem     Mohammed Halidu     Haliru Dantoro     Alaro     Bola Olukoju     New Model Police Station     Veterinary Teaching Hospital     Aisha Ahman-Pategi     Ahmed Mohammed Rifun     Buari Edun     Zubair Folorunsho Erubu     Olaiya Victor Mobolaji     Sam Okaula     AbdulHakeem Ajibola Akanbi     Seni Saraki     HYPPADEC     Agbarigidoma     ARMTI     Olatunji Moronfoye     Chartered Institute Of Personnel Management Of Nigeria     NFAI     Kassim Babamale     Aliyu U. Tilde     V.O. Abioye     Federal Neuro-Psychiatric Hospital     Elerin Of Adanla Irese     Musa Alhassan Buge     Magaji Erubu     Abubakar B.M     Obayomi Azeez     Ilesha-Gwanara     Otunba Taiwo Joseph     SSA Youth Engagement     Okoolowo     Age AbdulKareem     Oke-Ero     Adedeji Onimago     Igbaja     SDP     UNILORIN Alumni     Mogaji Aare     Oke-Odo     Undergraduate Bursary     Fatai Adeniyi Garba     Kunbi Titiloye     Dar-Al-Handasah Consultants     Abdulhakeem Adelaja Amao     Kumbi Titiloye     Kwara Coalition Of Business And Professional Associations     Nigerian Medical Association     Ilorin East/South Federal Constituency     Solomon Edoja     Olubukola Kifayat Adedeji     Ramadan     Baba-Isale     Lai Gobir     Mubarak Oladosu     Babaita