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.

Lotus Bank     Solomon Edoja     Mogaji Aare     Soffiyyallah Kamaldeen     NTA Ilorin     Temitope Ogunbanke     Babatunde Idiagbon     AbdulRazaq Jiddah     Oke-Kura     Salake     Temi Kolawole     GAMA     Kehinde Baale     Waziri Yakubu Gobir     Mufti Of Ilorin     Gambari     Gbugbu     Jare Olatundun     Jimoh Saadudeen Muhammed     Ramadan     Kwara State Geographic Information Service     Turaki Of Ilorin     Pakata Patriots     JUSUN     Ibrahim Sulu Gambari     Tunde Saad     High Court     Abdulkareem Alabi     Bamikole Omishore     Hausa     Emmanuel Olatunji Adesoye     Obasanjo     Bayo Ojo     Kwara State Fire Service     Hamidat Sulyman-Yusuf     Opaleke Bukola Iyabo     Ibrahim Bio     NITDA     Olaitan Adefila     Amoyo     Abdulsalam Firdaous Amosa     Ndakene     Egbejila     Okoolowo     Mahmud Ayinla Giwa     Mumeen Lah     Muhammad Toyin Sanusi     Afetu Of Alabe     Saidu Isa     Nigeria Computer Society     Saliu Ajia     Unilorin FM     Student Learning Support Helpline     Taofik Mustapha     Usman Alkali Baba     Yusuf Babatunde Abdulwahab     TIC     Siddiq Adebayo Idowu Salawu     Suleman Abubakar     ER-KANG     Ajuloopin     Abdulrazaq Sanni     Charles Ibitoye     Omotosho     United Nigeria Congress Party     Zara Umar     Muyideen Ajani Bello     Ajikobi     Voices Of Tomorrow     Oasis Muslim Care Foundation     Salman Suleiman     Malete     Abdulraheem Yusuf     Muslimah Entrepreneurship Forum     Tunji Oyawoye     Olaiya Victor Mobolaji     Oloye    

Cloud Tag: What's trending

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

Zara Umar     Veterinary Teaching Hospital     Mashood Abdulrafiu Agboola     Okin Biscuits     Mogaji Aare     MATTA Girls Foundation     AbdulFatai Adeniyi Dan-Kazeem     Eleja     Agbarigidoma     Aliyu Muhammad Saifudeen     Bayo Ojo     Olomu Of Omu-Aran     Taofik Abdulkareem Babaita     Alabe     Alabi Olayemi Abdulrazak     Yinka Aluko     Ajibola Saliu Ajia     Aremu Odolaye     Mohammed Kamaludeen     Buhari     Babatunde Ishola Babaita     Oju Ekun Sarumi     Vishvas KOZ Tractors     Ashiru     Femtech     Oniyangi     Kwara United     Dan Iya     Erubu     Paul Odama     Ilorin Talaka Parapo (ITP)     Ahmad Olayiwola Kamaldeen     Ifelodun     Egbejila     Oba-Solagberu     Salami Adekunle     Abdulmutalib Shittu     National Association Of Nigerian Students     Ajayi Okasanmi     Falokun-Oja     Abdulwaheed Musa     Afonja     Hameed Oladipupo Ali     Tricycle Owners Association Of Nigeria     Abubakar Atiku     Tsaragi-Share     IYA YUSUF     Fulani     Olaoye B. Felix     Aliyu Olatunji Ajanaku     Alfa Yahaya Road     Bio Ibrahim     Yekini Adio     Maigida Soludero Transit     Sunday Fagbemi     Funmilayo Oniwa     Hajj     Yusuf Zulu-Gambari     University Road     IHS Towers     AbdulRasaq Abdulmajeed Alaro     Nigerian Medical Association     Tunde Mukaila Mustapha     Press Release     Abdullahi Dasilva Yussuf     Jimoh Bashir     Playing Host     Umar Ayinla Saro     Afusat Nike Ibrahim     Academic Staff Union Of Universities     Turaki     Aro Yahaya     Ariyo     Baruten     Samuel Adedoyin     Junior Secondary School Certificate Examinations     National Party Of Nigeria