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.

Femi Agbaje     Bello John Olanrewaju     Sun Qing Rong     Garba Ado Sanni     Ebola     Akanbi-Oke     Wale Oladepo     EndSARS     Sadiq Umar     Ibikunle Ogunleye     Lafiagi     Galadiman Ngeri     Habeeb Saidu     Computer Based Test     NIPR     Modupe Oluwole     Charcoal     Taofik Abdulkareem     Segun Ogunsola     Abdulkadir Bolakale Sakariyah     International Aviation College     Ahman Patigi     Muhammed Danjuma     Nigeria Governors\' Forum     Shururat Olatinwo     Yakubu Dogara     Kayode Issa     Alabe     Kwha.gov.ng     Abdulrahman Abdulrasaq     Omar Bolaji Gambari     Sai Kayi     Abdulraheem Yusuf     Chartered Institute Of Personnel Management Of Nigeria     Folorunsho Alao     Rex Olawoye     Rotimi Oyedepo     Adamu B. Yaqubu     NURTW     Jide Oyinloye     Okasanmi Ajayi     Yaman     Sunset Workers     Olatunde Jare     Apaola     Kayode Yusuf     Unicontinental Construction Company     Funmi Salau     Volunteers Of Ilorin Community And The Emirate     IHS     Olaiya Zuberu     MATTA Girls Foundation     Alimi Abdulrazaq     Iponrin     HAMFAT Clinic And Maternity     Basit Olatunji     Kwara Metro Park     Mohammed Ghali Alaaya     Aishat Mohammed Lawal     Ibrahim Taiwo     Fatai Garuba Labaka     Ijagbo Health Centre     Abdulhakeem Amao     N-Power     Bashir Badawi     Federal Allocation     Rafiu Ajakaye     Kwara TV     Owo Arugbo     LAK Jimoh     Hassan A. Saliu     Katibi Ibraheem Adeola     Iyaloja-General     Marafan Shonga     Olaiya Lawal     Ganiyu Taofiq     Oluwatoyin Lukman    

Cloud Tag: What's trending

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

Chief Imam Of Offa     Kuliyan Geri     Ahmed Shuaib Buranga     HICA     Aliyu Muyideen     Abdulwahab Olarewaju Issa     Baba Issa Awoye     Isiaka Danmeromu     Share-Tsaragi     Olatunde Jare     Abubakar Suleiman     Kwabes     Pategi     Aliyu Kora-Sabi     Amada Jidda     Maimunat Oloriegbe     PAACO-PCL Consortium     IYA ALFA NLA     Abdulrahman Abdulrazaq     National Union Of Road Transport Workers     Ayinke Saka     National Broadcasting Commission     Asa     Majlis For Sadaqah, Zakat And Waqf     Egbejila     Kwara South     Opobiyi     Aremu Odolaye     Mahfouz Adedimeji     Hassan A. Saliu     Government High School Adeta     KWAFFA     Alabi Lawal     Muhammad Fawaz Abubakar     Idi-Ape     Yakubu Dogara     Sanitation Exercise     Aminu Adisa Logun     Lukman Oyebanji Fagbemi     Elesie Of Esie     Bello Abubakar     Ibrahim Oniye     Aliyu Olatunji Ajanaku     Iyiola Oyedepo     Yaman     IFK     Idofin     Kunle Suleiman     Yunus Oniboki     Waziri Yakubu Gobir     Special Agro-Industrial Hub     Kwasu     Yoruba     Monthly Sanitation     Shaykh Luqman Jimoh     Saka Balikis Kehinde     Abdul-Rahoof Bello     Mahmud Babatunde Baker     Ojo Fadumila     Oluwole Dupe     Abdulmumini AbdulRazaq     Ahman Pategi     Suleiman Abubakar     Funmilayo Oniwa     UNILORIN Alumni     Odogun Olushola Gabriel     Peculiar Allowance     Modupe Oluwole     2023 Elections     V.O. Abioye     Bello Taoheed Abubakar     Apado     John Olajide Adedipe     QuickWin     Salman Suleiman     KWTV     Amos Justus Sayo