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.

Abdulrazaq Aiyelabegan     TIC     Ejidongari     Saliu Mustapha     Olatomiwa Williams     Jalala     Mashood Dauda     Oniwasi Agbaye     Gurei     Ekiti     Adedayo Yusuf Abdulkareem     Olaiya Victor Mobolaji     Quran     Gbajabiamila     Suleiman Rotimi Iliasu     Owo Arugbo     Laboratory-to-Product     Kwarareports.com     Kwara Metro Park     Ita-Nmo Market     AbdulRaheem Ahmad Shayi     Shuaib Jawondo     Roseline Oni Aremu     Okin Group     Nigerian Correctional Service     Bello John Olanrewaju     Bola Tinubu     NSCIA     Bisi Kristien     Tsado Manman     IESA     Funke Adedoyin     Yoruba     Idiagbon     Yusuf AbdulRasheed     Monthly Sanitation     COVID     Bolaji Nagode     Senior Staff Union Of Colleges Of Education     Yekini Adio     Ahmed Shuaib Buranga     Abdulkadir Orire     QuickWin     Ahmed Bayero     Asa LGEA School     MINILS     Students Union Government     Is\'haq Modibbo Kawu     Babaloja-General     Temi Kolawole     Code Of Conduct     Col. Taiwo     Sulu Babaita Isiaka     Abegunde Goke     Radio Kwara     Kassim Babamale     Monkey Pox     Pakata Development Association     Amusement Park     Abubakar Atiku     Mustapha AbdulGaniyu     Salman Alada     Muhammed Abdullahi     Sa\'adu Salau     Coronavirus     Bond     Sadiq Buhari     Igbomina     Gbemi Saraki     Olayinka Oladapo Jogunola     Abioye Bello     Abdulkareem Alabi     ITEM 7     Share/Tsaragi     Adebayo Mohammed Kamaldeen     Wahab Femi Agbaje     Olaiya Lawal    

Cloud Tag: What's trending

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

Isiaka AbdulRazaq     Memunat Monsuma     Abdullahi Saadudeen Alikinla     Mamatu Abdullahi     Iyiola Oyedepo     Plat Technologies Limited     Shehu Adaramaja     Lanre Olosunde     Folaranmi Aro     Henry Olaosebikan     Tunji Folami     Amoyo     Abdulganiyu Salahudeen     Salihu S. Yaru     NIPR     Rashidi Yekini     Justina Oha     REO CAKES     Muslim Stakeholders Of Kwara State     Akande Idowu Ayoola Muhammed     Amuda Bembe     Monthly Sanitation     Salihu Jibril Garbi     Modibbo Kawu     Press Release     Eghe Igbinehin     Ajeigbe     Quranic Recitation Competition     Modupe Oluwole     Bature Bello     Olatinwo     Lanre Issa Onilu     Abdulwasiu Bolaji Adeyi     Societe Generale Bank Of Nigeria     Akume     Biliaminu Aliu     Salman Suleiman     Oro Grammar School Old Students Association     Makama     Abdulkadir Akanbi-Oke     Titus Ashaolu     Aremu Bose Deborah     Abdulrahman Abdullahi Kayode     Tunji Arosanyin     Abdulhakeem Adelaja Amao     Abdulraheem Yusuf     Ayo Salami     Mary Kemi Adeosun     Funmilayo Zubair     Oju Ekun Sarumi     Bashir Badawi     Tayo Awodiji     Raliat Islamic Foundation     Aishat Mohammed Lawal     Michael Imoudu National Institute For Labour Studies     Jeunkunu-Malete-Bani     Najim Yaasin     CACOVID     Timothy Olatunde Fadipe     Ghali Alaaya     Aliyu Muhammad Saifudeen     Saduki Lafiagi     Shehu Jimoh     Afolayan     Kabir Shagaya     Kunle Suleiman     Monkey Pox     Omotoso Musa     Sabitiyu Grillo     Senior Staff Union Of Colleges Of Education     Kwara United     Saliu Ajibola Ajia     Offa Grammer School     Awodun     Iliasu     Illyasu Abdullahi     Cornelius Adebayo