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.

Ibrahim Akaje     Gaa Olobi     Federal Allocation     Kwara Restoration Project     Ashiru     Yusuf Ibitokun Sherifat     Oba Abu     Taofik Abdulkareem     Awoye     Olaiya Victor Mobolaji     Olomu     Lasiele Alabi Yahaya     Raimi Iyanda     Fulani     School Of Nursing     Millennium Development Goals     Yahaya Dumoye     Omotosho     Yeketi     Rafiu Olasile     Musbau A. Akanji     Federal College Of Education (Special), Afon     Edu     Mohammed Abduraheem     Yahaya Seriki     Mohammed Ibrahim     Nurudeen Mohammed     Face Masks     Sheikh Hamzat Yusuf Ariyibi     Mahmud Ayinla Giwa     Ilorin Talaka Parapo (ITP)     Nigeria Customs Service     Abubakar Ndakene     Laolu Saraki     Iyabo Dupe Adekeye     Oloruntoyosi Thomas     Oko Erin     Isiaka Alikinla     Saduki Lafiagi     Mahmud Durosinlohun Atiku     Kumbi Titiloye     Sarakite     Abdulsalam Firdaous Amosa     Tunde Idiagbon Road     Abraysports FC     Olatinwo     Kwara Central     Yunus Oniboki     Sulu Babaita Isiaka     Demola Banu     LEAH Charity Foundation     Paul Olawoore     Aminat Ahmed     Olawuyi     Senate President     Haruna Olawale Sulaiman     Dan Masanin     Association Of Kwara State Online Media Practitioners     Abdulkadir Orire     Ishaq Abdulkarim     ASUU     Abubakar Usman Jos     Raymond Olaitan     Saka Saadu     Idris Amosa Oladipo Saidu     Nigeria Foundation For Artificial Intelligence     Jumoke Monsura Gafar     Toyin Abdullahi     Funmilayo Mohammed     Haashim Initiative For Community Advancement     CACOVID Palliatives     Salary     Garba Ayodele Wahab     Jeunkunu-Malete-Bani     Olayinka Olaogun     Saidu Isa     Hijaab    

Cloud Tag: What's trending

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

Ramadhan     Trade Lenda SME Fair     Elewu     Otuka     Senate President     Ajase-Ipo     Tosho Yaqub     Bello Oyedepo     SGBN     Share-Tsaragi     Aliyu Muhammed     Aisha Ahman Pategi     Titus Suberu-Ajibola     Towobola Abdulrahman Toyin     Alapado     Fola Consultant     Ita-Ore     Dan Iya     Bayo Onimago     Presidential Election     Abatemi-Usman     Rotimi Atere     Tinubu     Raji AbdulRasaq     Sobi     Geri-Alimi Split Diamond Interchange     Mike Omotosho     Oniyangi Kunle Sulaiman     Lanre Aremu     Ishola Balogun Fulani     Amina Susa\'a De Ahmed     Obuh     Ilota     Abdulrosheed Okiki     Adedayo Yusuf Abdulkareem     Ganmo Electricity Sub-Station     Saduki Lafiagi     Women Radio     Apado     Afonja     Kwara Primary Health Care Development Agency     Yahaya Jibril Usman     Belgore     Salihu S. Yaru     Bond     Taofik Abiodun Ahmed     Bayer Nigeria Limited     Theophilus Oyebiyi     Forgo Battery     NITDA     Kunbi Titiloye     Amada Jidda     Umar Sanda Yusuf     National Party Of Nigeria     Kale Ayo     Alumni Association Of The Federal Polytechnic Offa     Atiku     Mahmud Ayinla Giwa     RTEAN     General Hospital     Matthew Babaoye     Maimunat Oloriegbe     Eruku     Air Peace     Ahmed \'Lateef     Gobir     Okin Malt     Oluwatoyin Lukman     Wahab Abayawo     Moshood Bakare     Ibrahim Kayode Adeyemi     Vasolar Consultoria     National Union Of Road Transport Workers     Kuliyan Geri     UITH     NSCIA     Ahmad Fatima Bisola