EDITORIAL:
BEYOND THE MINIMUM WAGE: FIXINGFIGURES, FIXING AFFORDABILITY
Negotiations and subsequent agreements on Minimum Wage in Nigeria have been a phenomenal dynamics between Organised Labour and governments. It involves federal and state governments on one side, and Organised Labour (private sector inclusive) on the other side. Each side brings to the table of negotiation its inherent power of bargaining made manifest in strategic or logical arguments, intrigues and capacities towards a possible resolution that would stand as an agreement.
Usually, demands or negotiations for a “new” minimum wage are occasioned by the challenges of socio-economic realities, including inflation, in a given period. Characteristically, such a situation quite often leads to a protracted battle between the two sides with members of the Organised Labour (workers) at the receiving end as they groan in pains of various dimensions and gasp for breadth.
A brief peep into the trajectory of minimum wage would indicate that Nigeria began its minimum journey in 1981 as late President Shehu Shagari signed into law N125 as National Minimum Wage. In 2000, the minimum wage became N5, 500; it 2was raised to N7, 500 in 2011 and subsequently became N18, 000 during former President Goodluck Jonathan’s leadership.
In 2019, the Nigeria Labour Congress (NLC) had its way as the minimum wage was raised toN30, 000 under the administration of the immediate past president, Alhaji Muhammadu Buhari, who signed it into law.
The current demand and negotiation for new minimum wage consequent upon the prevailing crises of living which have been threatening life has, as usual, been a battle between the federal government and Organised Labour, led by Comrade Joe Ajaero, the President of NLC.
Recall that on January 30, 2024, Vice President Kashim Shettima, on behalf of President Ahmed Bola Tinubu, inaugurated a 37-man Tripartite Committee to propose a new minimum wage and submit to the federal government as “soon as possible.”
Perhaps, the phrase “as soon as possible” was a loose rope that manifested “crass insensitivity, lethargy and ineptitude” in the Committee’s national assignment with is attendant consequences.
To facilitate the process for a new minimum wage in the face of prevailing and choking socio-economic realities of poverty, high cost of living, hunger and anger, etc., the NLC leadership made an initial proposal of N615, 000; it later reduced its demand to N497, 000. As negotiations progressed, NLC came down to N494, 000 and a on more than 200 million Nigerians.
As has become the tradition in Nigeria, the fact should be noted that no sooner a hike in the minimum wage is effected than inflation and increase in the prices of goods and service hit the economy to consume the proposed gains of such adjustment, thus evoking again, the dark picture of poverty and living crises. In other words, the regular hike in minimum wage of the years has not provided the key to poverty alleviation and poor standard of living.
Consequently, this situation calls for conscious, patriotic and comprehensive strategies to overcome the systemic nuances holding the nation prostrate and stunting it potentials. A mere increase in minimum wage without addressing the macro-economic fundamentals militating against the economic development and prosperity of the country, amounts to just treating the symptoms of a disease without curing the underlying variables.
Beyond the expediency of upward adjustment of minimum wage in the face of ravaging poverty and living crises, also lies the desideratum of a calculated and measured policy framework for an enduring upward movement of productivity as a pillar for value-based wage. It needs to be appreciated that if prices of goods and services skyrockets faster than the strength of wages, the pay rise easily loses its capacity and strength to protect workers from the attendant financial strains and straits.
Therefore, to move forward, there is a compelling need for upward adjustment of minimum wage, to contain the immediate pivotal realities of the moment.
There is also a compelling and staring need to plan for an “enduring affordability of goods and services.” This is realizable by strategically and patriotically developing the country’s local contents as to contain inflation and hold in check, to an extent, the possibility of prices of goods and services skyrocketing that often occur with wage increase.
Leadership of Labour ought not to be carried away by or get swollen-headed with jumbo figures of wages. It should think beyond fixing wage figures and initiate a long-term pragmatic approach for a stable economy as to ensure the affordability of goods and services thus boosting the capacity of the wage figure to really take a worker home.
Suffice it to say in a planned economy, it would be beneficial for a worker to earn a two-digit figure wage and live in an almost stress-free economy charactersied by job opportunities, adequate security, high standard of living, than to earn a three or even four-digit figure in an economy characterised by abject poverty, hyper-inflation, hunger, anger, destitution, in security and the rest.
In other climes with stable economies engendered by conscious planning and productive policy frameworks, the issues of wages or earnings hardly raise dust or much controversy. This is due to the simple fact that individual wage or earnings are tied to the productivity of their economy.
Equally significant is the enviable role of the citizenry of a planned and stable economy being proactive on matters affecting their welfare as against the general docility, lack of social cohesion and reactionary disposition of the Nigerian citizenry as regards their wellbeing.
In all, and for emphasis, it is the constitutional responsibility of the government to provide for the welfare of its citizens through sound policy frameworks and programmes as to guarantee their happiness, not sadness.
Expectedly therefore, Government, as a matter of sincerity of purpose and patriotic wisdom of leadership, should earnestly begin the process of liberating Nigerians from the cobweb of crises of living in a country robustly endowed with both natural and human resources.
Continuous upward adjustment of minimum wage in response to the ever rising cost of living fuels inflation and worsens economic instability given the fact that Nigeria is solely an import dependent nation.
The real challenges are lack of moral sagacity and patriotic vision as to appreciate and situate the country’s fundamental economic problems and squarely address what Prof. Eskor Toyo called “Nigeria’s basic economic deformities” and set the country on the right and sustainable path of growth and dev
elopment. We cannot escape the judgement of history if we evade our responsibility for today.
