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.

Memunat Monsuma     Abatemi Usman     Bola Tinubu     Kemi Adeosun     C2c@kwarastate.gov.ng     Abdulrauf Yusuf     Lanre Issa Onilu     Amos Bajeh     Anilelerin     Otunba Taiwo Joseph     Prince Bola Ajibola     Mumeen Lah     Bibire Ajape     Isaac Aderemi Kolawole     Kayode Yusuf     Ahmed Bayero     Tsaragi     Saliu Ajibola Ajia     Dagbalodo     Mumini Ishola Hanafi     Sunset Workers     Kwara TV     Monthly Sanitation     Kunbi Titiloye     Quareeb     Yusuf Amuda Gobir     Dele Momodu     Balikis Jawondo     Ado Bayero     JMK Construction Company Limited     Kolo     Quareeb Islamic Association     Simeon Ajibola     Ndama Al-hassan     Mohammed Jimoh Faworaja     Oke-Oyi     Ilorin Like-Minds     Sabi     Adeniyi Ojo     Ayegbeni     Saliu Alamoyo     Abdulrazak Shehu Akorede     Kwara State Council Of Chiefs     BECE     Oloyede     Mutawali Of Ilorin     Dar-Al-Handasah Consultants Ltd     Minimum Wage     State Bureau Of Internal Revenue     Garba Ado Sanni     Adam Abdullahi Al-Ilory     Usman Rifun     Odo-Owa     Aisha Gobir     Oya State     EFCC     Just Law Forum     All Peoples Party     Allocation     SSA Youth     TIIDELab     Kehinde Boyede     Oladipo Akanmu Tolani     Ramadan     Ola Falade     Kwara Poly     Universal Basic Education Commission     Mustapha Akanbi     Saliu Mustapha     KWASAA     TETFUND     Sayomi     ASUU     Sheikh Ariyibi     Olatunji Ayeni     Ifelodun     Ahmed Shuaib Buranga    

Cloud Tag: What's trending

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

Abubakar Imam     Monthly Sanitation     Muhammad Fawaz Abubakar     Senior Staff Union Of Colleges Of Education     Kwara United     Offa Grammer School     High Court     Zara Umar     Esuwoye     James Kolo     Yunus Lawal     Doyin Group     Tanke Road     Shonga     Sheriff Shagaya     Micheal Imodu-Ganmo Road     Olawuyi     Oyun     Al-Hikmah Radio     Sabo-Oke     Samuel Olusegun Adedayo     School Of Nursing     Iponrin     Tunde Oyawoye     Olaosebikan     Nigerian Supreme Council For Islamic Affairs     Yusuf Mubarak     Alabi Olayemi Abdulrazak     Danladi     Damilola Yusuf Adelodun     Jamila Bio Ibrahim     Najim Yaasin     Aminu Ado Bayero     Damilola Yusuf     Bayo Mohammed Onimode     Femi Ogunsola     Mufutau Gbadamosi Esuwoye     Sabi     Oluronke Adeyemi     Post-utme     Naira Redesign     Akom Construction And Engineering Synergy Ltd     Yinka Aluko     Olatunji Moronfoye     Umar Bayo Abdulwahab     SAPZ Project     EFCC     Marufat Oladosu     Metro Park     Park     Yomi Ogunsola     Usman Yunusa     Y.A. Abdulkareem     Chief Imam Of Lafiagi     Alabere     Ilorin Emirate     CELF     Special Agro-industrial Processing Zone     Mary Kemi Adeosun     Solomon Edojah     David Oyepinola Adedumoye     Kayode Ishola     Kwara State Television     Olosi Of Osi     Ridhwanullah Al-Ilory     Abubakar Ndakene     Wahab Issa     20 Billion Bond     Henry Makinwa     A.E. Afolabi     Joseph Bamigboye     Salake     Joseph Alex Offorjama     IDPU     Mohammed Kamaludeen     Ishak Mohammed Sabi     Ilorin Talaka Parapo