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.

Yusuf Badmus     NURTW     Rafiu Ibrahim     Modupe Oluwole     Oya State     Okanlawon Taiwo     Yashikira     Musa Ayinla Yeketi     Segun Ogunsola     Dapo Teni Nig Enterprise     Kwara University Of Education     Revenue Court     Abdulrahman Abdulrazaq     Olayinka Are     CKNG     Transition Implementation Committee     Rotimi Samuel Olujide     Twitter     Voices Of Tomorrow     Kolade Solagberu     Kwara Primary Health Care Development Agency     Ayinke Saka     Assayomo     Abubakar Baba Sulaiman     Alimi     Tunde Kazeem     March 18     Toun Okewale-Sonaiya     Ganmo     KWTV     Mubarak Oladosu     Tayo Awodiji     Emir Of Ilorin     Doyin Group     AGF Abdulrazaq     Offa Descendants Union     CACOVID Palliatives     Oba David Oyerinola Adedunmoye     Rebecca Bake     Olokoba Sulyman     Salihu Ajia     Kwara Teaching Service Commission     Mutawali     Bank Of Industry     Aliyu Sabi     Fatima Abolore Jimoh     Abdullah Janet Amudat     Abdulmutalib Shittu     Government High School (GHS), Adeta     Fatimoh Lawal     Amuda Bembe     Aro Yahaya     UNILORIN Alumni     Sheikh Hamzat Yusuf Ariyibi     Sola Saraki Educational Foundation     Neo Mundo Ltd     Eleja Taiwo Banu     FERMA     Demola Banu     ARMTI     Gambari     Lanre Badmus     Pius Abioje     Niyi Osundare     Jani Ibrahim     Maigidasanma     Oba Of Jebba     IYA YUSUF     Adaramaja     Kisra     Abdulhakeem Adelaja Amao     Sunday Otokiti     Ilorin Airport     Tunji Folami     Abdul-Rasheed Na\'Allah     Raheem Adaramaja     Eghe Igbinehi    

Cloud Tag: What's trending

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

Labour Party     Dele Belgore     Aliyu Umar     Femtech     Binta Sulyman     Offa Poly     Elerinjare-Ibobo     Buari Edun     Mumini Ishola Hanafi     Bolaji Nagode     Ishola Balogun Fulani     Ganiyu Abolarin     Ibrahim Abiodun     Owu Fall     Facebook     Sanusi Abubakar     Salihu Ajibola Ajia     Abdulmajeed Abdullahi     Okin High School     Ilorin South     Nigeria Computer Society     IHS     Lanre Jimoh     Umaru Saro     Iponrin     Aishat Sulu-Gambari     Durbar     Babs Iwarere     Abdullahi Samari     Ganiyu Taofiq     Voices Of Tomorrow     Simeon Ajibola     Donatus Ejidike     AbdulQowiy Olododo     Yusuf AbdulRasheed     Hamidat Sulyman-Yusuf     General Tunde Idiagbon International Airport     Yusuf Aiyedun     Ibrahim Oloriegbe     Pategi     Kwara Volleyball Association     Lateef Fagbemi     Olusola Saraki     Ike Ekweremadu     PharmAccess Foundation     Sobi Specialist Hospital     KFA     3MTT     Aisha Abodunrin Ibrahim     AbdulRaheem Ahmad Shayi     Jelili Yusuf     Mubarak Oladosu     Col. Taiwo     Albert Ogunsola     Oke-Oyi     Kwara State Television     Gbemi Saraki     Jumoke Monsura Gafar     Olajumoke Monsura Gafar     Sa\'adu Gambari     Ahmad Ali     Elerin Of Erin-Ile     Sabo-Oke     Esuwoye     Chartered Institute Of Personnel Management Of Nigeria     Tunji Moronfoye     Kwara State Branch Of The National Library     Charles Ibitoye     Oro Grammar School     Taofik Mustapha     BIR     Monthly Sanitation     Usman Rifun     Yusuf Badmus     Tayo Awodiji     Raliat Islamic Foundation     Muslim Cementary