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.

Jaigbade Alao     Galadima     Amusement Park     Awwal Jawondo     Olabimpe Olani     Abdulmutalib Shittu     Bola Tinubu     John Olobayo     Kwara 2015     Oniwa     Ibrahim Abduquadri Abikan     Aremu Odolaye     Femi Gbajabiamila     NTA Ilorin     Jani Ibrahim     Maigidasanma     Ajikobi     Rex Olawoye     Shuaib Abdulkadir     Afolasade Opeyemi Kemi     National Democratic Congress     National Pilot     Ayinke Saka     Ayo Opadokun     Adeleke Ogungbe     Olatinwo     Balogun-Ojomu     Mohammed Halidu     Ajakaye     Otuka     Belgore     Admiralty Villa     Raji AbdulRasaq     Bello Bature     Jimoh Akani     Adamu Ibrahim Sabi     Sola Saraki Educational Foundation     Sa\'adu Salau     Onilorin     Press Release     Opobiyi     UNILORIN Alumni Association     CACOVID Palliatives     Mufutau Olatinwo     Balogun Fulani     Arca Santa     Olatunde Jare     Idris Amosa Oladipo Saidu     Oyun     Isiaka Oniwa     Oba Abdulkadir La\'aro     Alimi     Ijagbo Health Centre     Idris Garba     Pacify Labs     Hassan A. Saliu     Okasanmi Ajayi     Shola Odetundun     Taofik Abdulkareem     Abubakar Ndakene     Peculiar Allowance     Senate     Simeon Sayomi     Muslimah Entrepreneurship Forum     Elerin Of Adanla     Share     Ola Falade     All Confederation Of Principals Of Secondary Schools     Federal Neuro-Psychiatric Hospital     Okedare     Millennium Development Goals     Theophilus Oyebiyi     Kayode Ogunlowo     Omar Bolaji Gambari     Oloriegbe     Amuda Bembe     Ajeigbe    

Cloud Tag: What's trending

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

Umaru Saro     Towoju     Adesoye     Saliu Tunde Bello     Akeem Olatunji     Deji Ajani     Cassava Growers\' Association     Charcoal     Apaola     Ademola Kiyesola     Toyosi Thomas     Eghe Igbinehi     Bola Shagaya     Sun Qing Rong     Ilorin South     Olatunji Ayeni     Modupe Oluwole     TIC     Omotoso Musa     Shonga     Popo-Igbonna     Abubakar Lah     Bolakale Saka     Oke-Ogun     Musa Aibinu     Tanke Flyover Bridge     Erin-ile     AbdulGafar Tosho     Kassim Babamale     Salaudeen Oyewale     Yusuf Arowosaye     Ministry Of Women Affairs And Social Development     Shehu Alimi Foundation For Peace And Development     Raheem Adaramaja     Bolakale Kawu     Olabode Towoju     SDP     Ambassador Kayode Laro     Mazars Consulting     LAK Jimoh     March 18     Isiaka Yusuf     Mary Kemi Adeosun     AbdulRazaq Abubakar Jiddah     Abubakar Suleiman     AIT Ilorin     Olokoba Sulyman     Ibrahim Kayode Adeyemi     Raimi Iyanda     Muyideen Ajani Bello     Alabi Olayemi Abdulrazak     NAWOJ     New Naira Notes     AbdulKareem Yusuf Danhawa     Oko     Olanrewju Okanlawon Musa     Guber Aspirant     Susan Modupe Oluwole     Solomon Edojah     Ilorin Amusement Park     NIRSAL     Agbarigidoma     Saadu Gbogbo Iwe     Mary Arinde     Olugbense     Wahab Abayawo     Abdulrazak Shehu Akorede     Kayode Zubair     Trader Moni     Prince Bola Ajibola     Issa Baba     Baba Issa Awoye     Tafidan Kaiama     CT Ayeni     Kulende     Niyi Osundare     Frootify