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.

Fatimoh Lawal     Yusuf Olaolu Ali     Yusuf Abdulkadir     Adegoke Bamidele     Abdulfatah Ahmed     Awoye     Alapansapa     Jumoke Monsura Gafar     Kwara State Health Insurance Agency     Rafiu Ajakaye     Radio SBS     Mukhtar Shagaya     Lola Ashiru     Olusin Of Ijara Isin     Salary     Michael Nzekwe     Hydroelectric Power Producing Areas Development Commission     AbdulRazaq Jiddah     Salman Jawondo     Toun Okewale-Sonaiya     AGF Abdulrazaq     Asa LGEA School     Jimba Babatunde     Coalition Of Kwara North Groups     Federal Road Maintenance Agency     Mohammed Halidu     Ajase-Ipo     Kwara State Sports Commission     Kola Bukoye     Share     Bolaji Gambari     Senate Presidency     A.E. Afolabi     Surajudeen Akanbi     Ahmed Bolaji Nagode     Razaq Ayobami Akanbi     Kayode Ishola     Ahmed Shuaib Buranga     Salman Suleiman     Aisha Abodunrin Ibrahim     Amusement Park     Ishola Moses Abiodun     Kawu     Olosi Of Osi     Shehu Salau     Sobi     Musa Aibinu     Sheikh Ridhwanullah     Okin Group     NIPOGA     Shettima Of Ilorin     Sidikat Uthman Ajibola     Abubakar Baba Sulaiman     Hakeem Lawal     NULGE     Femtech     COEASU     Binta Abubakar Mora     Harmony Holdings     Medinat Folorunsho Salman     Sheikh Hamzat Yusuf Ariyibi     Shoprite     Hausa     David Oyedepo     Ariyo     Ambassador Kayode Laro     Abdulrahman Iliasu     Ademola Kiyesola     Emir Of Ilorin     Ilorin Likeminds Foundation     Curfew     ASKOMP     Baba Adini Of Kwara State     Kudirat Arinola Lawal     Femi Ogunsola     AIT Ilorin     Senior Staff Union Of Colleges Of Education    

Cloud Tag: What's trending

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

Eruku     Iqra Books     Women For Change And Development Initiative     Shuaib Boni Aliyu     Garba Idris Ajia     Ahman Patigi     Abubakar Olusola Saraki     International Vocational Centre     AbdulGaniyu Kareem     Amuda Bembe     Yusuf Abdulraheem     Sa\'adu Gambari     All Peoples Party     New Naira Notes     Olayinka Oladapo Jogunola     Salake     Oro Grammar School     Rice Farmers Association Of Nigeria     All Confederation Of Principals Of Secondary Schools     Kwara State Health Insurance Agency     Gobir Organization Foundation     Kolawole Bashirat     Yemi Sanni     Otuka     Amoyo     Kolawole Akande     Ishaq Abdulkarim     Aminat Omodara     Ayedun     Mahee Abdulkadir     Lateef Fagbemi     Imam Gambari     Saliu Tunde Bello     Ahmed     Oke-opin     Abdullahi Atanda     Halidu Danbaba     Kupchi Hosea Maxwell     Durbar Festival     Salman Alada     Simeon Sule Ajibola     Metro Park     Tsaragi/Share     Kwara Muslim Pilgrims Welfare Board     Abdulganiyu AbdulAzeez     KWSUED     NYSC     Shoprite     Ibrahim Abdulkadir Abikan     Raliat Islamic Foundation     University Road     Ifelodun     Yekini Adio     Folorunsho Erubu     Cornelius Adebayo     Yusuf Ali     Shehu Adaramaja     Joseph Yemi Ajayi     Bolaji Aladie     Forgo Battery Company Limited     Idris Garba     Muhammed Abdullahi     Vasolar Consultoria     Umaru Saro     Mashood Abdulrafiu Agboola     Isaac Aderemi Kolawole     Sa\'adu Salahu     CBT     Bolakale Kawu     Olatunde Jare     Ndakene     Ibrahim Akaje     Ilorin Like-Minds     Nurudeen Mohammed     Baba Adini Of Kwara State     Sarkin Malamai     Lawal Jimoh