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.

Diagnostic Centre     Abdulrazak Shehu Akorede     Ahmed Ayinla Jimoh     Katibi Ibraheem Adeola     Zara Umar     JMK Construction Company Limited     Law School Scholarship     Kunle Suleiman     Laolu Saraki     Mohammed Saidu     Salaudeen Oyewale     Samuel Adedoyin     Idofin     Suleiman Abubakar     Ahmad Olanrewaju Belgore     Shola Odetundun     Veterinary Teaching Hospital     Sa\'adu Salahu     Saka Isau     Yahaya Oloriegbe     Jebba     Wahab Isa     N-Power     Twitter     Offa Metropolitan Club     Alore     Nigerian Correctional Service     Erubu Oba Zubair     Saudat Abdulbaqi     Solomon Edojah     Ajeigbe     Col. Adedipe     Yusuf Abdulkadir     Kunle Akogun     Al-Adaby     Hassan Taiye Salam     Atiku     Curfew     Rex Olawoye     Ilesha Gwanara Road     Patigi Regatta     Unilorin FM     Awwal Jawondo     Kisira     Akom Construction And Engineering Synergy Ltd     Ope Saraki     Democracy Day     COEASU     Otoge     Ahmed Saidu Rufai     Royal FM     Muslim Media Watch Group Of Nigeria     Bola Shagaya     Shagari     Shehu Adaramaja     Ojuekun Sarumi     Makama     Bamikole Omishore     COVID-19 Palliatives     Babatunde Idiagbon     Sa\'adu Salau     08001000100     Woro     Muritala Awodun     Amasa     Ayinde Oyepitan     Kayode Yusuf     National Party Of Nigeria     Moshood Bakare     Kehinde Boyede     Rebecca Olanrewaju     Quareeb     Gobir     IESA     Kwara State Football Association     Ariyo     Village Alive Development Association    

Cloud Tag: What's trending

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

Abdullahi Samari     Air Peace     Durosinlohun Kawu     Adijat Adebiyi     S.O. Opowoye     Cornelius Adebayo     Ibrahim Gambari     Aminat Omodara     Iliasu     Ubandawaki     Abdullah Janet Amudat     Wahab Femi Agbaje     Seun Bolaji     Aliyu Kora-Sabi     Ayo Opadokun     Olaitan Adefila     Abubakar Ndakene     Dasuki Belgore     Kunbi Titiloye     Shehu Alimi Foundation     Dan-Kazeem     Veterinary Teaching Hospital     Baboko Primary School     BECE     Olaiya Lawal     Umar Ahmed Gunu     Bayo Ajia     Abdulwahab Oba     Oyelere Oyinloye     Peter Amogbonjaye     Muhammad Fawaz Abubakar     Gbenga Olawepo     Oluwole Dupe     Ilofa     Akanji     Sherif Shagaya     Tuesday Assayomo     Abdulrahman Abdullahi Kayode     Olaiya Zuberu     Abdulwahab Ololele     Kwara Liberation Group     Bashir Badawi     Code Of Conduct Tribunal     Volunteers Of Ilorin Community And The Emirate     Mohammed Tunde-Jimoh     Idofin     Oke-Oyi     Yaman     Sayomi     School Of Nursing     Saad Belgore     Saka Balikis Kehinde     Akeem Olatunji     Umar Sanda Yusuf     Lawal Olohungbebe     Madawaki Of Ilorin     Y.A. Abdulkareem     Harrison Osauwagboe     IPSAS     Rabiu Kwankwaso     Bola Iyabo Ibiyeye Adisa     Abdulmutalib Shittu     Isiaka AbdulRazaq     Moro     Dauda Adesola     Raheem Adaramaja     IEDPU     Ronke Adeyemi     Unicontinental Construction Company     Shuaib Jawondo     Ghali Alaaya     Leke Ogungbe     Shonga Farm Project     Gabriel Fashanu     Kanu Agabi     Sam Onile     Abiodun Jacob Ajiboye