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.

Ilorin West     ANCOPPS     SGBN     Abdulrazaq Solihudeen     Sai Kayi     Press Release     Saba Jibril     Oladipo Akanmu Tolani     Adamu Atta     Offa Descendants Union     Otuka     Tunji Arosanyin     M.Y. Abdulrahaman     Hassan Oyeleke     Convocation Ceremonies     Oluwatoyin Lukman     Esinrogunjo     Ekiti     Taofeek Sanusi     Rafiu Olasile     Plat Technologies Limited     Local Government Pension Board     Bankole Omishore     Mohammed Katsina Ahmed     KwaraLearn     RTEAN     Tunde Yusuf     Yusuf Zulu-Gambari     Ubandawaki     Rebecca Bake     CUTI     KWAFFA     Abdulraheem Olesin     Iyeru Grammar School     CACOVID Palliatives     David Oyerinola Adedunmoye     Bola Magaji     Yomi Ogunsola     General Tunde Idiagbon International Airport     Saliu Tunde Bello     Tafidan Kaiama     Yahaya Abdulkareem     Lasiele Alabi Yahaya     Offa Metropolitan Club     Kwara State Football Association     Segun Abifarin     Dankaka     AbdulRazaq Abubakar Jiddah     Post Utme     Raliat AbdulRazaq     Nurudeen Mohammed     IYA YUSUF     Shola Odetundun     Kola Bukoye     Adisa Logun     Www.Kwarareports.com     Abdulrazaq Magaji     Radio Kwara     Lawyers Unite Against Corruption     Ajikobi     Abubakar Lah     Dauda Adeniran Adeshola     Ayinde Oki     Kwara State Fire Service     Lukman Oyebanji Fagbemi     Obayomi Azeez     Abdulsalam A. Yusuf     Haleeman Salman     Sulyman Atolagbe Alege     Saheed Alakoso     Towobola Abdulrahman Toyin     Alabere     Neo Mundo Ltd     Imodoye Writer’s Enclave     ENetSuD     Abiodun Musa Aibinu     Facemasks    

Cloud Tag: What's trending

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

Abdulrahman Abdullahi Kayode     Funmilayo Mohammed     Salmon Babatunde Salmon     JAMB     AbdulFatai Adeniyi Dan-Kazeem     Habeeb Abdullahi Al-Ilory     Abdulmumini Jawondo     Iqra Books     Abdulmumini Sanni Jawondo     S.O. Opowoye     KWATMA     Titus Ashaolu     Kwara Apc     Radio Kwara     FERMA     Face Masks     Borgu     Shehu Jimoh     Victor Gbenga Yusuf     Chief Of Staff     Trader Moni     Government House     Oye Tinuoye     Saeedat Aliyu     Abdulmalik Bashir Mopelola Risikatullahi     Isiaka Danmeromu     Balikis Jawondo     Abdulrauf Yusuf     Ebun-Olu Adegboruwa     Rebecca Olanrewaju     Alumni Association Of The Federal Polytechnic Offa     Charles Ibitoye     Bisi Oyeleke     Moronfoye     Federal Neuro-Psychiatric Hospital     Sarafadeen Kayode Akorede     Malete     Jeunkunu-Malete-Bani     Mansurat Amuda-Kannike     Adeleke Ogungbe     Yusuf Abdulwahab     Moremi High School     Ganmo Electricity Sub-Station     Yahaya A Paniyaro     Azeez Bello     Toun Okewale-Sonaiya     Tunde Yusuf     Akorede     Undergraduate Bursary     Ridhwanullah Al-Ilory     Aminat Omodara     IYA YUSUF     Dan Masanin     Ganmo     Adijat Adebiyi     Toyin Abdullahi     Florence Saraki     Oke-Ero     Ishaq Salman     Rotimi Samuel Olujide     Local Government Pension Board     Asa     Yahaya Seriki Gambari     Oke-Kura     Waheed Ibrahim     Basic Education Certificate Examination     Aisha Ahman-Pategi     Raliat Islamic Foundation     Tunde Idiagbon Road     Abdulkadir Orire     Olota Of Odo-Owa     GRA     Moses Adekanye     Abubakar Aliagan     Kola Olota     EndSARS     Ilorin Descendants Progressive Union