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     Musbau A. Akanji     Economic And Financial Crimes Commission     Dumagi     Yusuf Aiyedun     David Adesina     Makama Of Ilorin     Quarry Royal Valley     Oke-Ogun     Matthew Babaoye     Muhammed Danjuma     Mukhtar Shagaya     Elections     Olushola Saraki     Basit Olatunji     Ndakene     Salman Suleiman     Hassan Abdulazeez Elewu     Raliat AbdulRazaq     Musa Alhassan Buge     Alapansapa     Abatemi Usman     Olatinwo     Sebastine Obasi     Oke-Ero     Bature Bello     Barakat Community Secondary School     KSIRS     Mohammed Abduraheem     Bolaji Abdullahi     IF-K     Nupe     Segun Ogunsola     Obuh     CBT     Kpotum Mohammed Baba     Mohammed Jimoh Faworaja     Kwara Primary Health Care Development Agency     Ashiru     Rapheal Ashaolu     Kassim Babamale     Oju Ekun Sarumi     Taofik Abdulkareem     Pategi     Okin Biscuits     Adeniyi Ojo     Justina Oha     Azeez Salawu     Principal Private Secretary     Ghali Alaaya     Oyun     Abdullahi Adisa Akodudu     Abdulrahman Onikijipa     Mopelola Abdulmaliq-Bashir     Olusin Of Ijara Isin     Omotoso Musa     Fatai Adeniyi Garba     Ahmad Uthman     Societe Generale Bank Of Nigeria     Rafiu Ibrahim     Kunle Akogun     Agor Market     Aisha Gobir     Saliu Alamoyo     Mumini Ishola Hanafi     Muhammad Yahya     Nigeria Foundation For Artificial Intelligence     Amuda Musbau     Kamaldeen Ajibade     Omoniyi Ayinla     Elekoyangan     Ojuekun Sarumi     Suleman Abubakar     Segun Adeniyi     Aliyu Muhammed     Ayo Salami     Yakub Lai Gobir    

Cloud Tag: What's trending

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

Saka Onimago     Paul Olawoore     Usman Yunusa     Abdullahi Dasilva Yussuf     Arinola Fatimoh Lawal     Agbarere     Abubakar Suleiman     Kunle Akogun     Tunji Moronfoye     Mohammed Ibrahim     Tayo Awodiji     Temi Kolawole     Olatunde Olukoya     Okin Biscuits     Afolabi-Oshatimehin Adenike Harriet     Tunde Akanbi     Ahman Pategi University     Yusuf Abdulwahab     Mohammed Ghali Alaaya     SSUCOEN     Mohammed Halidu     Suleiman Rotimi Iliasu     Abdulrazaq Adebayo     Facemasks     Iyeru Grammar School     Kolo     Balikis Jawondo     UITH     All Peoples Party     Saba Jibril     National Union Of Road Transport Workers     Olajumoke Monsura Gafar     Abdul Jimoh Mohammed     Ajidagba     Jalala     Afonja Descendants Union     John Dara     Towobola Abdulrahman Toyin     Hamid Bobboyi     Dunmade     PPS     National Pilot     Yoonus Lawal     Olokoba Abdullahi Ayinla     Rihanat Ajia     Jamiu Oyawoye     Amoyo     Ijakadi     Omotosho     Muhammad Sirajo Aliyu     Yakub Ali-Agan     Yetunde Balogun     Idris Amosa Oladipo Saidu     Hassanat Bello     Osi     Hussein Olokooba     International Vocational Centre     Bola Ahmed Tinubu     Fareedah Dankaka     Arca Santa     Memunat Monsuma     Abdulmumini AbdulRazaq     Shuaib Jawondo     Bolaji Abdullahi     Kunbi Titiloye     Alfa Modibbo Belgore     Kishira     Mogaji Aare     April 11     Yahaya Abdulkareem     Leke Ogungbe     Prince Sunday Fagbemi     Olateju Lukman     Standard Organization Of Nigeria     Jaigbade Alao     Ilorin Airport     Omoniyi