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.

Ayodele Shittu     Salake     Freshvine Nigeria Limited     Afolayan     Paul Odama     Erubu     Elerinjare-Ibobo     Adesoye     Sam Okaula     Haruna Olawale Sulaiman     State Bureau Of Internal Revenue     Just Event Online     Lawyers Unite Against Corruption     College Of Arabic And Islamic Legal Studies     James Ayeni     Saidu Yaro Musa     Abiodun Oyedepo     IYA YUSUF     Toyin Falola     Markaz Arabic And Islamic Training Institute, Agege     Afetu Of Alabe     Ojuekun     KWSIEC     Kwara State Infrastructure Development Fund     Tanke     Hussein Olokooba     Student Learning Support Helpline     Gbugbu International Market     Balogun Gambari     IHS Towers     Sulyman Age AbdulKareem     Joseph Daudu     NSCIA     Garuba Alikinla Shittu     Ayedun     Lola Olabayo     Kabir Shagaya     Ndama Al-hassan     Kwara NIPR     Onikijipa     Makama Of Kaiama     Iyiola Oyedepo     Yahaya Seriki     Mohammed Danjuma     Students Union Government     Ganiyu Abolarin     Mufti Of Ilorin     Adaramaja     HYPPADEC     Oke-opin     Oba Abdulraheem     Elerinjare     Iponrin     Oniye     Ndakene     Jimoh Bashir     Ibrahim Gambari     Ishola Abdullahi     Olatunde Olukoya     Flights To Ilorin     Muhammed Mahe Abdulkadir     Ilorin West     Binta Sulyman     Kwarareports     Federal Road Maintenance Agency     ER-KANG     Abiodun Jacob Ajiboye     CT Ayeni     Taofeeq Olateju     Suleiman Rotimi Iliasu     Abdulmumini Jawondo     Amosa     Bilikis Oladimeji     Adewuyi Funmilayo     Saraki     Suwa-Arabs     Bukola Ajikobi    

Cloud Tag: What's trending

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

Nnazua     Ishola Moses Abiodun     Manzuma     Abdullahi Saadudeen Alikinla     Savannah Centre For Diplomacy, Democracy And Development     Abubakar Abdulraheem     Ubandoma     Olajumoke Monsura Gafar     ER-KANG     Lanre Badmus     Kamaldeen Gambari     Abioye Bello     Sheikh Hamzat Yusuf Ariyibi     Salihu Alhaji Musa     Funmilayo Zubair     Tunde Mukaila Mustapha     2017 Budget     Minimum Wage     RTEAN     Ahmed Bayero     GRA     Muslimah Entrepreneurship Forum     Abdulrahman Abdulrasaq     Yeketi     Razaq Ayobami Akanbi     IF-K     Tafida Of Kaiama     Ahmed Shuaib Buranga     Alapado     Issa Oloruntogun     Tuesday Assayomo     Ishaq Salman     Abubakar Aliagan     Iponrin     Rafiu Olasile     AbdulFatai Adeniyi Dan-Kazeem     Abdulmumin Yinka Ajia     Babatunde Ishola Babaita     Doyin Group     Emir Of Yashikira     Idowu Aremu     Salman Suleiman     Jaiz Bank     Ilorin     Moji Makanjuola     Ibrahim Abdulkadir Abikan     Abubakar B.M     Suleiman Idris     Lateef Fagbemi     Damilola Yusuf Adelodun     National Pilot     Tsado Manman     Yekeen Alabi     Muideen Olaniyi Alalade     KWAFFA     Sulyman Age AbdulKareem     Babatunde Idiagbon     EndSARS     Amule Elementary School     IESA     New Naira Notes     Alimi     The Herald     QuickWin     Gobir     Senate President     Kawu Baraje     Charcoal     Olam Food Ingredients     Muslim Media Watch Group Of Nigeria     JAMB     Maja     Bio Ibrahim     Standard Organization Of Nigeria     Shoprite     National Union Of Road Transport Workers     Sa\'adatu Modibbo-Kawu