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.

AGILE Programme     Obuh     Isaac Gbenle     Kwara-SAPZ Project     AbdulQowiy Olododo     Local Government Pension Board     Musa Yeketi     Sun Qing Rong     Michael Ologundea     Igbaja     Afolabi-Oshatimehin Adenike Harriet     Salihu S. Yaru     Offa Grammer School     Centre For Peace And Strategic Studies     Raji AbdulRasaq     REO CAKES     Jimoh Olusola Imam     Abdulrasaq Alaro     Riskat Opakunle     Hamidu Olowo     National Party Of Nigeria     Abdulfatah Ahmed     KWTV     Okeose Christian Cementary     Pakata     Omar Gambari     Abdulwasiu Bolaji Adeyi     Modibbo Kawu     Valsolar     National Association Of Nigerian Students     Maigida Soludero Transit     Iyiola Oyedepo     Special Agro-Industrial Hub     Ibraheem Adeola Katibi     Sheriff Olanrewaju     Sai Kayi     George Innih     Saliu Tunde Bello     Hamidat Sulyman-Yusuf     Dumagi     Mahmud Ajeigbe     Bayo Ajia     Bluenile Associates     NITDA     Sobi Specialist Hospital     Jimoh Lambe Abdulkareem     Moshood Kashimawo Abiola     Kayode Oyin-Zubair     Shehu Jimoh     Rotimi Oyedepo     VADA     Oniye     Joseph Offorjama     AGF Abdulrazaq     Adam Abdullahi Al-Ilory     Ilesha-Baruba-Gwanara     Bello John Olanrewaju     Kayode Yusuf     Galadima     Lanre Issa-Onilu     AbdulHakeem Ajibola Akanbi     Sardauna     Muhammad Fawaz Abubakar     Kumbi Titiloye     Atiku     TESCOM     Yusuf Abdulwahab     Lanre Aremu     Ganmo Electricity Sub-Station     Emmanuel Olatunji Adesoye     Ibrahim Mashood     Ilorin South Constituency     Tafida Of Kaiama     Issa Baba     Kwara State Pension Board     Femi Ogunsola     Volunteers Of Ilorin Community And The Emirate    

Cloud Tag: What's trending

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

Oasis Muslim Care Foundation     Yetunde Balogun     Lanre Badmus     Presidential Election     Kpotum Mohammed Baba     HYPPADEC     Ilota     Www.Kwarareports.com     Kwara Restoration Project     Mahmud Durosinlohun Atiku     Aisha Ahman Pategi     Timothy Olatunde Fadipe     Rihanat Ajia     Towobola Abdulrahman Toyin     Lanre Olosunde     Adolescent Girls Initiative For Learning And Empowerment     Abdulwasiu Bolaji Adeyi     Federal Neuro-Psychiatric Hospital     Salihu Ajia     FOMWAN     Ndama Al-hassan     Kwara State Council Of Chiefs     Bareke     Adam Abdullahi Al-Ilory     ASMAU PLAZA     Aremu Bose Deborah     Iyabo Dupe Adekeye     Kwara State University Of Education     Valsolar Consortium     Radio SBS     Kwara State Pension Board     Gbenga Awoyale     Issa Baba     Olupako Of Share     Tosin Saraki     Doyin Agbamu     Idowu Aremu     Mohammed Ajia Ibrahim     Bolakale Ayo     Garba Ado Sanni     SDP     Adamu B. Yaqubu     Ayinde Oyepitan     Ita-Ore     LAK Jimoh     YAKOOYO     Abdulsalam Firdaous Amosa     Maryam Ado Bayero     Abdulrasheed Akogun     Folorunsho Alao     College Of Education     Abdulganiyu Oladosu     Gambari     Esuwoye     Owo Arugbo     AbdulRasaq Abdulmajeed Alaro     Computer Based Test     Charles Ibitoye     Gbugbu International Market     Saka Aleshinloye     Mohammed Tunde-Jimoh     Kawu     NSCIA     Adedayo Yusuf Abdulkareem     Baboko     Al-Ilory     Kwara Apc     Abubakar Aliagan     Maryam Nurudeen     Sarkin Malamai     Oro Grammar School Old Students Association     Lawan     Seun Bolaji     Lucky Omoluwa     Photo News     Ashiru     Bluenile Associates