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.

Lithium     Saad Belgore     All Confederation Of Principals Of Secondary Schools     David Adesina     Olayinka Are     Yashikira     Mohammed Khadijat Kubura     Esinrogunjo     Isaac Gbenle     Toun Okewale-Sonaiya     Laboratory-to-Product     Abubakar Olusola Saraki     Adeleke Ogungbe     Aminu Ado Bayero     Abdulrasheed Akogun     Lafiagi     Muhammad Akande Olarewaju Odunade     Kwara State Printing And Publishing Corporation     Mustapha AbdulGaniyu     Baba-Isale     Sulu Babaita Isiaka     Aremu Bose Deborah     Lasiele Alabi Yahaya     Sobi Specialist Hospital     Ahmed Mohammed Rifun     Bayo Ajia     Abubakar Kawu Baraje     Student Learning Support Helpline     Mutawalle     Special Agro-Industrial Hub     Jimoh Bashir     Ubandoma     JMK Construction Company Limited     Odogun Olushola Gabriel     Sherif Shagaya     National Broadcasting Commission     Kaosarah Adeyi     Oni Adebayo     Abdul-Rahoof Bello     Abdulrahman Abdulrasak     Toyin Saraki     Adegoke Bamidele     GGDSS Pakata     Universal Basic Education Commission     Yusuf Abubakar     March 28     Samuel Adedoyin     Senate     Salihu Yahaya     Joana Nnazua Kolo     Garba Ayodele Wahab     Kayode Ibrahim     N-Power     Obuh     Budo-Egba     Issa Manzuma     Mohammed Ajia Ibrahim     Shola Odetundun     Olusin Of Ijara Isin     Omupo     Yusuf Aiyedun     Innocent Okoye     Bayer AG     Oladimeji Thompson     Ibrahim Taiwo     Majlis For Sadakah, Zakat And Waqf     ASMAU PLAZA     Oba Of Jebba     Islamic Development Bank     CT Ayeni     Ayobami Akanbi     Abdulrazaq Akorede     Mamatu Abdullahi     NNPP     Babs Iwarere     Mufutau Gbadamosi Esuwoye     Olajumoke Monsura Gafar    

Cloud Tag: What's trending

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

Mohammed Halidu     Shaykh Luqman Jimoh     Kabir Shagaya     Ibrahim Labaika     Offa Descendants Union     Muslim Cementary     Bursary     Ileloke     Kawu     Ibrahim Mashood     Mohammed Abduraheem     Sabi     Innocent Okoye     Societe Generale Bank Of Nigeria     Oko-Olowo     Hydro-electric Power Producing Areas Development Commission     Zainab Abass     Abdulquawiy Olododo     Police Commissioner     Oladipo Akanmu Tolani     Ayodele Shittu     Idofin     Alloy Chukwuemeka     Valsolar Consultoria     Adebayo Mohammed Kamaldeen     Siraj Oyewale     Majlis For Sadaqah, Zakat And Waqf     Jaigbade Alao     Ibrahim Abduquadri Abikan     Oniwa     Adebayo Salami     Smart School     Fawenu     Gbenga Awoyale     Ilorin East/South Federal Constituency     Micheal Imoudu     Titus Suberu-Ajibola     Haliru Dantoro     IYA YUSUF     Joshua Adeyemi Adimula     Rebecca Olanrewaju     Geri-Alimi Split Diamond Interchange     Principal Private Secretary     Madawaki     Kwara State Governor     JUSUN     Ayeyemi Sulaiman     Okoolowo     Ibikunle Ogunleye     YAKOOYO     EFCC     Na\'Allah     Zulkifli Ibraheem     Igosun     Olumide Daniel Ibitoye     Saliu Oluwole     Ibrahim Kayode Adeyemi     Islamiya Abdulraheem     Ibrahim Taiwo Road     Lawan     Chief Imam Of Ilorin     Shehu Adaramaja     Yusuf Abdulwahab     Abdulganiy Abimbola Abdussalam     Lola Ashiru     Sulaiman Gado     Fatimoh Lawal     Federal Allocation     Henry Makinwa     Student Learning Support Helpline     Asiwaju Bola Tinubu     CCB     Young Progressives Party     Toyin Abdullahi     Binta Abubakar Mora     State Bureau Of Internal Revenue     Sheu Ndanusa Usman