OPINION: Nigerian Workers Deserve a Raise not a Reduction in Wages. By Abdulmumin Yinka Ajia

Date: 2015-11-24

You know you have a do nothing national assembly when no single motion has been moved to stop Nigeria's governors from reducing the minimum wage from N18, 000. Before now, I had wanted to make the socio economic case why the monthly minimum wage in Nigeria for those who work full time should be around N52, 500. This is an equivalent of $267 a month. And even this rate should be adjusted for inflation every five years.

Now, at my proposed N52, 500, the minimum wage earner would only have N10, 000 for transportation, N10, 000 for feeding, N10, 000 for utilities, N12, 500 a month for rent (based on an average annual rent of N150, 000 for a decent one bedroom apartment across the country with the exception of Abuja, Lagos, Port Harcourt and Warri that are higher) and possibly save N10, 000 in a savings account for emergencies.

At N52, 500, the minimum wage earner may not be able to afford medical insurance for himself and his family if he has one. Though the Nigerian National Health Insurance Scheme is actually one of those well thought out and properly executed social program in Nigeria, I discovered that many of our compatriots cannot afford the N15, 000 yearly premium for an individual. At the proposed monthly minimum wage of N52, 500, an average Nigerian worker may not be able to pay the N15, 000 yearly health insurance premium at once. If it is spread out over a 12 month period, he probably would be able to pay. I can also imagine that some of them may bypass the health insurance altogether while praying not to get sick.

At my proposed N52, 500 monthly minimum wage, the minimum wage earner would not be able to afford any kind of luxury. Now, I have also embedded in my projection that such an individual would only be able to send his or her kids to public schools and take out high interest loans in order to be able to afford a used automobile to move around. Owning an automobile becomes a necessity for such a worker in order for him or her to avoid the tyranny of the commercial transporters. The used automobile is no luxury and would take him/her about 4 years to pay off a loan of N300, 000 in order to purchase an above junk automobile that will take him from home to work. If he were to do this, he wouldn't even have any savings at all - as his projected monthly savings of N10, 000 will go into paying for his car loan.

This is the reality of the Nigerian worker. And they are not mere statistics, some of them are family, I know them, I know their struggles, and I am amazed at how they have been able to survive on their ridiculously small wages. They are the unsung heroes of Nigeria whose silent labour and enormous sacrifice has kept Nigeria one. If the Nigerian governors’ forum were to carry its idiocy very far and reduce the ridiculous N18, 000, these silent heroes and heroines may be woken up from their slumber and hell will pay. Nigerian workers do not deserve a reduction in their wages, they deserve a raise. My advice to Nigeria's 36 governors and the federal government is to close corruption loopholes, cut unnecessary expenditure, reduce taxes for small business owners to spur growth, and transfer some of the savings to the least paid workers in the form of a wage increase to somewhere around N52, 500 in order for the minimum wage earner to be able to barely survive.

Abdulmumin Yinka Ajia is of the Department of Global Leadership, College of Business, Indiana Institute of Technology, Fort Wayne, Indiana, USA

 


Cloud Tag: What's trending

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

Folorunsho Erubu     Issa Oloruntogun     United Nigeria Congress Party     All Confederation Of Principals Of Secondary Schools     Abdulwaheed Musa     Oke-Kura     Olaitan Adefila     Owo Isowo     Alaiye     Owu Fall     Abdulwahab Olarewaju Issa     Ibrahim Abiodun     Javed Khan     Stephen Fasakin     Omupo     Ilorin Durbar     Salihu Alhaji Musa     Bature Bello     Post-utme     Suleiman Mora Omar     Lawal Olohungbebe     Ile Arugbo     Ilorin East/South Federal Constituency     Federal Polytechnic Offa     Lukman Oyebanji Fagbemi     Ademola Kiyesola     Yusuf Abubakar     Sambo Murtala     Societe Generale Bank Of Nigeria     Elese Of Igbaja     Michael Ologundea     ENetSuD     KWACOBPA     Waheed Ibrahim     Islamic Development Bank     Ahmad Lawan     Ibrahim Mashood     Haruna Olawale Sulaiman     Bukola Saraki     AbdulHamid Adi     Baba Issa     Oluwole Dupe     UTME     Ibrahim Taiwo     Maigidasanma     Aremu Odolaye     Wahab Kunle Shittu     Tunji Oyawoye     Ophthalmological Society Of Nigeria     Gurei     Maigida Soludero Transit     Manzuma     Razaq Ayobami Akanbi     Kwara 2015     Hassan Taiye Salam     Moronfoye     N-Power     Orisa Bridge     AbdulGaniyu Kareem     March 18     Post Utme     Rachael Obisesan     Oluwarotimi Boluwatife Adenike     CACOVID Palliatives     Muhammadu Buhari     Basit Olatunji     KFA     Temi Kolawole     Rebecca Bake     Bolakale Saka     Oba Abdulkadir La\'aro     Aliyu Kora-Sabi     Fatimat Saliu     Yusuf Ali     Ajidagba     Mazars Consulting     Aso-ofi    

Cloud Tag: What's trending

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

Alao Ayotunde     Fola Consultant     Bayo Lawal     Awoye     Babaita     Erin-ile     Amusement Park     Clara Nwachukwu     Kaosarah Adeyi     Abdullateef Abdussalam     Kwasu     Kwarareports.com     TETFUND     Olaitan Buraimoh     Ahmad Belgore     Kehinde Baale     Tafida     Tunde Akanbi     IEDPU     Oba Abdulrahim     Special Adviser On Digital Innovation     Dar-Al-Handasah Consultants Ltd     General Hospital, Ilorin     Budo-Egba     Majlis For Sadakah, Zakat And Waqf     Hikmah AbdulKareem     Toyin Saraki     Mohammed Danjuma     Suleman Abubakar     N-Power     Babs Iwarere     Ahmed Bayero     Balogun Gambari     MAI Akande     Ile Arugbo     Obayomi Azeez     JMK Construction Company Limited     Kwara State Coalition Of Business And Professional Associations     Hydroelectric Power Producing Areas Development Commission     Mopelola Abdulmaliq-Bashir     Medview Airlines     Akorede     Muhammad Ghali Alaaya     Yemi Sanni     Kwara Central     Sulyman Atolagbe Alege     Abdullah Janet Amudat     Overland     ITP     Oke-Ero     Aisha Ahman-Pategi     Rebecca Bake     AbdulRahman Saad     Omoniyi Ayinla     Olugbense     Taofik Abdulkareem Babaita     Madawaki Of Ilorin     Mujtabah Bature     Binta Abubakar Mora     Mahfouz Adedimeji     Balogun Fulani     Abdulfatah Ahmed     Dairo Kunle Paul     Ado Ibrahim     Ahmed Ayinla Jimoh     Olusegun Adeniyi     Tunde Idiagbon Road     Abdulmajeed Wahab     Lanwa     Tafida Of Ilorin     Yahaya Seriki Gambari     New Nigeria People’s Party     Ali Ahmad     Shuaibu Yaman Abdullahi     Apado     Kwara Basketball Association     Aminu Adisa Logun