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.

Kolo     Abubakar Aliagan     Oro Grammar School Old Students Association     Abiodun Oyedepo     Freshvine Nigeria Limited     Raji Ayodele Kamaldeen     Jani Ibrahim     Lasiele Alabi Yahaya     MalHub     Raliat Islamic Foundation     Oniye     Al-Adaby     Jimoh Lambe Abdulkareem     Adamu Atta     Razaq Ayobami Akanbi     COVID-19 Palliatives     Ayoade Akinnibosun     African Democratic Congress     Suleiman Mora Omar     Bature Bello     Tunde Akanbi     Durbar Festival     Harmony Holdings     Habeeb Abdullahi Al-Ilory     Gbugbu International Market     Yusuf AbdulRasheed     Ophthalmological Society Of Nigeria     Shettima Of Ilorin     Eleyele     Amosa     Kwarareports.com     Abdulraheem Yusuf     BECE     Oko-Olowo     Kisira     Joseph Daudu     Emmanuel Olatunji Adesoye     Ahmad Fatima Bisola     Hakeem Lawal     Mohammed Kamaludeen     Okala Baba     Trade Lenda SME Fair     Chief Imam Of Offa     Public Holiday     Erubu     NULGE     Tsaragi     Senior Ibrahim Suleiman     Mohammed Ghali Alaaya     Samuel Adaramola     Olohungbebe     Ishola Moses Abiodun     Sheikh Ridhwanullah     Elerin Of Erin-Ile     Tunde Saad     Kunle Suleiman     Moshood Mustapha     Adewuyi Funmilayo     Akande Idowu Ayoola Muhammed     United Nigeria Airline     Abdulsalam A. Yusuf     Saka Abimbola Isau     Ibrahim Abikan     AGM Professional Services     Kehinde Boyede     Ilorin Emirate Staff Association     Kunle Akogun     Mohammed Abdulahi     Otoge     Muritala Awodun     Halidu Danbaba     Col. Ibrahim Taiwo     Pakata     Oyelere Oyinloye     Vishvas KOZ Tractors     Abdulrazaq Aiyelabegan     Doyin Awoyale    

Cloud Tag: What's trending

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

A.E. Afolabi     Raliat Islamic Foundation     Wale Oladepo     Oladimeji Thompson     Ojo Fadumila     Umar Ahmed Gunu     Sulu Gambari     SSA Youth Engagement     Ekweremadu     Oba-Solagberu     Dar-Al-Handasah Consultants     Ilorin West/Asa Federal Constituency     Federal College Of Education (Special), Afon     Yusuf Amuda Gobir     Kawu     Simeon Sule Ajibola     David Oyedepo     Rasaq Jimoh     Abdulsalam A. Yusuf     Bond     Abdullahi Dasilva Yussuf     Salihu Jibril Garbi     Tafida     KWSIEC     Otunba Taiwo Joseph     Federal Allocation     Ridhwanullah Al-Ilory     Ahmed Mohammed Rifun     Kayode Issa     Ebola     Borgu     MalHub     Alore     Temi Kolawole     Halimat Yusuf     Salihu Yahaya     Bamikole Omishore     Ayobami Akanbi     Lateef Ademola Olatunji     Moshood Mustapha     Razaq Ayobami Akanbi     Ishola Abdullahi     Sardauna Of Ilorin     Haliru Dantoro     Coalition Of Kwara North Groups     Gbajabiamila     Benin Republic     Abubakar Olusola Saraki     Oko Erin     Kwha.gov.ng     Isiaka AbdulRazaq     Abdulrahman Abdullahi Kayode     Harmony Holdings     Tafidan Kaiama     Abdulmumini AbdulRazaq     Mohammed Khadijat Kubura     Bukola Ajikobi     CCEPE     Umar Bayo Abdulwahab     Oye Tinuoye     Onilu     Societe Generale Bank Of Nigeria     Mohammed Tunde-Jimoh     Awodun     VADA     Imodoye Writer’s Enclave     Muhammed Danjuma     Islamic Development Bank     Garba Dogo     Funmilayo Oniwa     Dunmade     Dagbalodo     Aliyu Muhammad Saifudeen     Medinat Folorunsho Salman     Garment Factory     Olupako     Aliyu Muhammed