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.

Offorjama     Samuel Elizabeth Keatswa     Hassan Taiye Salam     Elerinjare     Kawu     Mohammed Lawal Bagega     Oniwa     Valsolar Consultoria     Kulende-UITH     Yekini Adio     Ilorin     Bisi Kristien     Muslim Cementary     Babata     Tunde Kazeem     Federal Polytechnic Offa     Mohammed Lawal     Ahmed Alhasssan     Saliu Alamoyo     Irepodun     Lanre Badmus     Shuaib Jawondo     Oluwatoyin Lukman     Isiaka Rafiu Mope     Ibikunle Ogunleye     Saad Belgore     Senior Ibrahim Suleiman     David Oyedepo     Erubu Oba Zubair     Jamila Bio Ibrahim     ER-KANG     United Nigeria Congress Party     Lateef Ademola Olatunji     Baboko Primary School     Wale Oladepo     Amasa     Emir Of Yashikira     Umar Adelodun     Isiaka Oniwa     Kunle Okeowo     JMK Construction Company Limited     Oyedepo     Quareeb     Oyun     Ramadhan     Adamu B. Yaqubu     Quran     Olusegun Adeniyi     Tunji Arosanyin     Esuwoye     Clara Nwachukwu     National Pilot     Orisa Bridge     Lanre Issa-Onilu     Prince Sunday Fagbemi     Mustapha Olanipekun     Ilorin Emirate Staff Association     Oke Sunna     Lasiele Alabi Yahaya     Marufat Oladosu     Owode Market     Afin Descendants Union Of Odo-Owa     KWIRS     Saadu Yusuf     Ahmed Idris Mohammed     Maigida Soludero Transit     Abdulahi Abubakar Bata     Okala Baba     Al-Hikmah University     Peter Obi     Nigeria Customs Service     Kwara State Television     Sabi     Dogara     Yusuf Lanre Badmas     Tosin Saraki     Ajike People Support Centre    

Cloud Tag: What's trending

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

Kwara Pdp     Garba Ado Sanni     Bolakale Ayo     Unilorin FM     Maimunat Oniyangi     Aisha Ahman Pategi     Oluwatoyin Lukman     Crystal Corner Shops     Saba Jibril     Zara Umar     Kaosarah Adeyi     GAMA     Amos Sayo     Teachers Specific Allowance     Omoniyi M. Ayinla     Dauda Adeniran Adeshola     Demola Banu     Sambo Murtala     Afin Descendants Union Of Odo-Owa     Share     Aremu Bose Deborah     Majlis For Sadakah, Zakat And Waqf     Ahmed Mohammed Rifun     Olawuyi     Rafiu Ajakaye     Mary Kemi Adeosun     Saadu Yusuf     Sulyman Age AbdulKareem     Sarakite     Bello Bature     Abubakar Bature Sulu-Gambari     Salake     Samuel Adedoyin     Gbadeyan Gbadura Yomi     Lai Gobir     Haleeman Salman     Otunba Taiwo Joseph     Azeez Bello     Bola Ahmed Tinubu     Peter Obi     NSCIA     Usman Yunusa     Ilorin Emirate Staff Association     Alao Ayotunde     Sarah Jubril     AbdulRazaq Abubakar Jiddah     Niyi Ogundiran     NYSC     Iqra Books     Sola Saraki University     John Dara     Idowu Laro     Facebook     Niguel Gallando Marcias     Aliyu Kora-Sabi     Olatunde Michaels     Baruten     Shagari     Abdulrahman Abdulrasaq     Michael Ologundea     Omupo     Orire     Women For Change And Development Initiative     Jumoke Gafar     Colleges Of Education Academic Staff Union     Ilorin West/Asa Federal Constituency     Razaq Atunwa     Shuaibu Yaman Abdullahi     Mahmud Babatunde Baker     Gbenga Olawepo     Bola Tinubu     TIC     Yakubu Mohammed Abdullahi     Baakini     CUTI     Yakubu Dogara     Abdulwasiu Bolaji Adeyi