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.

Alaaya     Iyaloja-General     Kabir Shagaya     Donatus Ejidike     Ahmed     Nigeria Computer Society     Umar Ayinla Saro     Yakubu Gobir     Galadiman Ngeri     Allocation     Muslim Cementary     Salihu Yahaya     Suwa-Arabs     Riskat Opakunle     Kwara Volleyball Association     KWASSIP     Yusuf Zulu-Gambari     Unilorin FM     Salihu Ajibola Ajia     New Naira Notes     Samuel Adedoyin     Olaiya Zuberu     Rasaq Jimoh     Charcoal     Apado     Sobi Hill     Abdulganiyu Salahudeen     Oke-Kura     Nigerian Correctional Service     Kumbi Titilope     Oko-Erin     Yaru     Kupchi Hosea Maxwell     Raji Ayodele Kamaldeen     Laboratory-to-Product     Ilorin     Col. Adedipe     Eghe Igbinehin     Kwara State University Of Education     Funmilayo Oniwa     Saad Omo\'ya     TESCOM     Buhari     Abdulwahab Olarewaju Issa     Akanji     Lateef Alagbonsi     Aisha Gobir     Unilorin     Ayodele Olaosebikan     Nigeria Customs Service     Special Adviser On Digital Innovation     Abdulwaheed Musa     Mansurat Amuda-Kannike     African Democratic Congress     Joseph Yemi Ajayi     Olofa Of Offa     Baba-Isale     Mujtabah Bature     Mustapha Akanbi     Sadiq Buhari     Bola Olukoju     Abdulrazaq Magaji     Idris Amosa Saidu     March 18     Emir Of Kano     Ubandoma     Abdulbaqi Jimoh     Kayode Ibrahim     Durosinlohun Atiku     Apaokagi     Lola Ashiru     Modibbo Kawu     UTME     Fola Consultant     Tunji Arosanyin     Tinubu     Ohoro Of Shao    

Cloud Tag: What's trending

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

Musa Ayinla Yeketi     Umar Ahmed Gunu     Government Girls’ Day Secondary School Pakata     Kwara State Sports Commission     Mohammed Tunde-Jimoh     Mumini Ishola Hanafi     Esuwoye     Afolabi-Oshatimehin     Sodiya     Tunde Yusuf     Radio Kwara     Rebecca Bake     GGDSS Pakata     Saliu Alamoyo     Dele Momodu     Bolaji Abdullahi     Sambo Murtala     Saad Omo Iya     Kwara State Football Association     Saka Keji     Sobi Hill     Ganmo Electricity Sub-Station     Third Estate     Doyin Agbamu     Bamidele Aluko     Bursary     Lanre Badmus     Odo-Owa     Ibrahim Kayode Adeyemi     Abdulmumini Jawondo     Tricycle Owners Association Of Nigeria     Lanre Issa Onilu     TIIDELab     Ojuekun     Overland     Michael Nzekwe     Abdulganiyu AbdulAzeez     Ibrahim Oniye     Segun Olawoyin     Aliyu Sabi     Mogaji Aare     Budo-Egba     Oro Grammar School     Presidential Election     Galland Marcias     Adamu Jemilat-Baki     Rasaq Jimoh     Tunde Idiagbon Road     Ibrahim Abduquadri Abikan     Moshood Kashimawo Abiola     Government High School Adeta     Amos Sayo     Funmilayo Oniwa     Matthew Babaoye     Salake     Valsolar Consultoria     Halimat Yusuf     Fawenu     Muhammadu Buhari     Oba Of Jebba     Saka Asiat Ayinke     Saheed Akinwumi     Aso-ofi     Eghe Igbinehin     Zubair Folorunsho Erubu     AbdulRazaq AbduMajeed Alaro     Nnazua     Omoniyi Ayinla     Alapansapa     Okin High School     Aliyu Muhammed     Obuh     Yomi Ogunsola     Zara Umar     Cornelius Adebayo     Tafida     A.O. Belgore