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.

A.G.F Abdulrasaq     Laboratory-to-Product     Ramat Oganija     Adebara     Olohungbebe     Marafan Shonga     Sardauna     Yusuf Olaolu Ali     NSCIA     Lola Ashiru     Ilorin General Hospital     Habeeb Saidu     AbdulRasaq Abdulmajeed Alaro     Mahfouz Adedimeji     Bolaji Gambari     Forgo Battery Company Limited     Onilorin     Wahab Femi Agbaje     Oluwarotimi Boluwatife Adenike     CBT     AGM Professional Services     IDPU     Yusuf Abdulwahab     Y.A. Abdulkareem     Anilelerin     Park     Gabriel Fashanu     Bolakale Kawu Agaka     Sarah Jubril     Bello Oyebanji     Alikinla     Sola Saraki University     Alanamu     Adesoye     Fulani     Umar Sanda Yusuf     Muritala Olarewaju     Yoruba     Abdul Jimoh Mohammed     Titus Ashaolu     Tunji Folami     Funmilayo Isiaka Oniwa     Yunus Oniboki     Amule     Modupe Oluwole     Bolaji Nagode     Okin Biscuit     Soffiyyallah Kamaldeen     Bio Ibrahim     Salihu Jibril Garbi     Orire     David Oyepinola Adedumoye     Yusuf Ibitokun Sherifat     Fatai Garuba Labaka     David Adesina     Tunde Kazeem     Lasiele Alabi Yahaya     Ogbondoroko     Muhammadu Gobir     SWAN     Kayode Oyin Zubair     Turaki     Umar Yakubu Jaja     Abdulraheem Olesin     Tunde Mukaila Mustapha     Zulu Gambari     Sobi FM     Hydro-electric Power Producing Areas Development Commission     Agbarere     Kwara South     Jamiu Oyawoye     Moji Makanjuola     Adesoye College     Gurei     Innocent Okoye     Bilikisu Gambari     Mukhtar Shagaya    

Cloud Tag: What's trending

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

Abdulganiyu AbdulAzeez     Kwara State Fire Service     Grillo     Rafiu Olasile     BIR     Abubakar Usman Jos     ASKOMP     Sulyman Buhari     State Bureau Of Internal Revenue     Tayo Alao     Gobir     Share/Tsaragi     Ope Saraki     Kuliyan Geri     Mahmud Babatunde Baker     Elerinjare-Ibobo     Abdulsalam Firdaous Amosa     Yunus Lawal     Moremi High School     Yusuf Badmus     Lanre Aremu     AbdulKareem Yusuf Danhawa     Convocation Ceremonies     Maimunat Oloriegbe     General Hospital, Offa     Pategi     Makama     Rasaq Jimoh     Marufat Oladosu     Iyabo Adewuyi     Muritala Awodun     Modupe Oluwole     Halimat Yusuf     Mike Omotosho     Abdulrasheed Na\'Allah     Kunle Suleiman     Ubandoma     Hassan A. Saliu     Bayo Lawal     Abdulkadir Akanbi-Oke     Sarkin Malamai     Raji AbdulRasaq     CCB     Bilikisu Gambari     Michael Nzwekwe     Sheikh Hamzat Yusuf Ariyibi     Jani Ibrahim     Abdulrazaq Aiyelabegan     Special Adviser On Digital Innovation     Babajide Ajayi     Rasheed Jimoh     Nigerian Army     Saliu Oluwole     Oniwa     United Nigeria Airline     Baba-Isale     Omotosho     Ojuekun     Dele Belgore     NSCIA     Oba Abdulkadir La\'aro     Ita-Ore     Kisra     Sebastine Obasi     Oro Grammar School Old Students Association     Owo Arugbo     Zaratu Umar     Olohungbebe     Victor Gbenga Yusuf     Quareeb     Kamaldeen Ajibade     Habeeb Abdullahi Al-Ilory     Elese Of Igbaja     Aliyu Olatunji Ajanaku     Jide Oyinloye     Asiwaju Bola Tinubu     Saidu Kawu