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.

Garuba Alikinla Shittu     Bamidele Adegoke     Abdullahi AbdulMajeed     Najim Yaasin     Peter Amogbonjaye     Oke-opin     George Innih     Fatima Abolore Jimoh     Muideen Olaniyi Alalade     Baba Issa     Zaratu Umar     Abdulkadir Remi Hawawu     Ibrahim Taiwo     Olohungbebe     Ali Ahmad     Mohammed Katsina Ahmed     Shuaib Abdulkadir     Atiku Abubakar     Peter Obi     Aasiyat Bello Oyedepo     ARMTI     Salary     Aso Ofi     Ajibike Katibi     Olatunde Oyeyiola     Lukman Oyebanji Fagbemi     SWAN     UITH     NTA Ilorin     Valsolar Consortium     Baba Issa Awoye     Abegunde Goke     Nigeria Foundation For Artificial Intelligence     Chief Imam Of Omu-Aran     Yakubu Dogara     T And K FOODS     Baba Idris     Khairat Gwadabe     AbdulFatai Adeniyi Dan-Kazeem     Onikijipa     Umar Bayo Abdulwahab     Ahmed Bayero     April 11     Femi Oladiji     Kayode Zubair     Sun Qing Rong     Sa\'adu Salahu     KWASEIC     Yakub Lai Gobir     Moshood Mustapha     KWASAA     Bayo Onimago     Mohammed Abduraheem     2023 Elections     Yoonus Lawal     Kwara Restoration Project     Mahmud Babatunde Baker     Aliyu Muhammad Saifudeen     Anilelerin     Ilorin International Airport     Mutawali Of Ilorin     Muhammad Sirajo Aliyu     Logun     Moshood Bakare     Shuaib Jawondo     Suleiman Ajadi     Ilorin Emirate     Sulyman Atolagbe Alege     Oluronke Adeyemi     Ajase-Ipo     Labour Party     Oyeyemi Olasumbo Florence     Issa Baba     Doyin Agbamu     Olaitan Adefila     Lateef Fagbemi     Mohammed Kamaludeen    

Cloud Tag: What's trending

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

Voices Of Tomorrow     Abdulrazaq Akorede     Olatunji Ayeni     Ibrahim Abikan     Adedipe     Trader Moni     Adeola Abraham     Quareeb     Abubakar Atiku     Post-utme     Haliru Dantoro     Oke-opin     The Herald     Saka Isau     Lukman Adeloyin     Ishola Abdullahi     Oyedepo     Monkey Pox     Abdul Jimoh Mohammed     Aro Yahaya     Saheed Akinwumi     Reuben Paraje     Turaki     Ramadan     FERMA     Susan Modupe Oluwole     Royal FM     Abdullahi Atanda     Abdulrahman Onikijipa     Adegoke Bamidele     International Aviation College     Yusuf Abdulwahab     Gbemisola Oguntimehin     Dar-Al-Handasah Consultants     Abdulrazaq Aiyelabegan     Hassan Oyeleke     Yusuf Arowosaye     Atiku Abubakar     Toyin Sanusi     Isiaq Khadeejah     Col. Ibrahim Taiwo     Rafiu Ibrahim     Kayode Laro     Olaiya Lawal     Ajeigbe     Samari     PAACO-PCL Consortium     Isiaka Saka Opobiyi     Dele Belgore     Lai Gobir     Olusegun Adeniyi     V.O. Abioye     Saad Omo\'ya     Shuaib Abdulkadir     Edu     Salmon Babatunde Salmon     Atiku     Kawu     Overland     Kwabes     Isiaka Danmeromu     KwaraLearn     Muyiwa Oladipo Kanu     Olosi Of Osi     Bareke     Computer Based Test     Alfa Modibo Belgore     Mike Omotosho     Kale Belgore     Orisun Igbomina     Tanke     Albert Ogunsola     Saidu Yaro Musa     Akande Idowu Ayoola Muhammed     Hijaab     Olatinwo     Balogun Gambari