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.

Okanlawon Taiwo     Mary Kemi Adeosun     Sayomi     Yahaya Muhammad     Abdulraheem Yusuf     Oke-Kura     National Pilot     Belgore     Ubandawaki     Olaitan Buraimoh     Isaac Gbenle     Kayode Ibrahim     Rotimi Samuel Olujide     Facebook     Shagari     Suleiman Idris     Kwara North     Facemasks     SAPZ Project     Tunde Kazeem     Ibrahim Labaika     Ayegbeni     Segun Adeniyi     Kawu Baraje     Gwanara     Garba Idris Ajia     Baaziki Sulaiman     Fatai Garuba Labaka     Suleiman Alege Kuranga     Alfa Belgore     Paul Odama     Sadiq Buhari     Jide Oyinloye     Sa\'ad Alanamu     Jide Ashonibare     Shola Odetundun     Dan-Kazeem     Ali Ahmad     Sunset Workers     Abdulkadri Ahmad Alaiye     Alimi Abdulrazaq     Bayer AG     Umar Danladi Shero     Hydro-electric Power Producing Areas Development Commission     Vasolar     Oyeyemi Olasumbo Florence     Arandun     Dumagi     Shettima     Democracy Day     Micheal Imoudu     Sola Saraki University     Binta Sulyman     Olatunji Abdulmumeen     Kwara State Geographic Information Service     Arinola Lawal     Ijagbo     Jimoh Olusola Imam     Balogun-Ojomu     Musa Alhassan Buge     Police Commissioner     Muhammad Fawaz Abubakar     Kehinde Boyede     Michael Ologundea     Magaji Erubu     Ahmad Uthman     Haliru Dantoro     Eruku     NTA Ilorin     Dauda Adesola     Balogun Ajikobi     Olatunji Ayeni     Moshood Mustapha     Abdullateef Abdussalam     Yakubu Mohammed Abdullahi     Moses Rahman Popoola     Ahmed Saidu Rufai    

Cloud Tag: What's trending

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

Ibrahim Abdulkadir Abikan     REO CAKES     Toyin Abdullahi     Ibrahim Oniye     Quareeb Islamic Association     Oye Tinuoye     Hydro-electric Power Producing Areas Development Commission     International Vocational Centre     Magaji Erubu     Maryam Nurudeen     Haliru Dantoro     Coronavirus     Gbugbu     Saheed Alakoso     MAI Akande     Zara Umar     Nigerian Army     Kwara 2023     Kazeem Oladepo     SSA Youth Engagement     Yahaya Abdulkareem     Umar Danladi Shero     AbdulGaniyu Kareem     Ilorin Amusement Park     Taofik Abdulkareem     Victor Gbenga Yusuf     Makama Of Kaiama     Suleiman Yahya Alapansapa     Tsaragi-Share     Saheed Akinwumi     Ella Supreme Tissue Paper     Government House     Jeunkunu-Malete-Bani     Shuaibu Yaman Abdullahi     Moses Rahman Popoola     Agbarigidoma     Jalala     Micheal Imodu-Ganmo Road     Habeeb Abdullahi Al-Ilory     Amos Justus Sayo     Mahmud Ajeigbe     Fatai Olodo     Iyeru Grammar School     Alliance For Democracy     Ayegbeni     New Nigeria People’s Party     Igosun     Muhammad Yahya     Amos Bajeh     AIT Ilorin     Ajibola Saliu Ajia     NFAI     Sabi     Soffiyyallah Kamaldeen     QuickWin     Olumide Daniel Ibitoye     Budo-Egba     Ekweremadu     Oyun     Abdulbaqi Jimoh     General Tunde Idiagbon International Airport Ilorin     Abdulrasaq Alaro     Obuh     NNPP     Ajibike Katibi     Ijagbo Health Centre     Tunde Oyawoye     Busari Toyin Isiaka     Ridhwanullah Al-Ilory     Sa\'adatu Modibbo-Kawu     Adamu B. Yaqubu     Oladimeji Thompson     Egbewole     Ike Ekweremadu     Muhammed Akanbi     ER-KANG     Gani Saadu