Experts in economics and finance have advised the federal government to ensure Nigerian workers would take home N100,000 at the end of every month as minimum wage. Former Deputy Governor of CBN, Professor Kingsley Moghalu said the demand by organized labour for a minimum wage of N497,000 would not be feasible in our economy......READ THE FULL STORY>>.....READ THE FULL STORY>>
The Professor of Political Economics, Moghalu, said the government cannot pay a wage of N400,000 because the economy has little to no productivity. He said had Nigeria leaders made policies that encouraged production rather than consumption, an N400,000 minimum wage was right for workers.
The President of Institute for Governance and Economic Transformation in Africa added that if the government agrees to pay the demand of labour, private employers would not be able to pay.
Moghalu said, “In the debates on national wage in Nigeria we miss the fundamental point: there is little or no productivity in the economy. If we had a truly productive economy there is no reason we can’t have the kind of minimum wage of 400 or 500K that Labour wants. But we can’t, because the level of productivity in the economy cannot support it.
“Remember, minimum wage is not just about government salaries. There are not more than 2, at most 3 million civil servants in Nigeria. It is even more about what is paid in the private sector, to household staff, etc.
“All of this is why, all things considered, including avoiding a minimum wage that multiplies already ravaging inflation (assuming such a wage can even be paid), I recommend a minimum wage of between N75,000 and N100,000.
On his part, Paul Alaje, Chief Economist at SPM Professional said the time had come for state governments to buckle down and reduce frivolous expenses.
The PhD Economist, Alaje, said humongous revenue would disappear, but an N100,000 minimum wage for workers should be the standard considering economic hardship and inflation caused by fuel subsidy removal, insecurity and electricity tariff increase with cushion policies from the government.
“Worst time to have a strike, and it is also a worst time to pay less than 150,000. I pity state governments. The party is over! Humongous revenue will disappear. There is no shortcut to real revenue generation and IGR.
Both parties should be realistic. N100,000 to N250,000 will be a range to consider,” Alaje said.
He noted that the increase in the minimum wage would definitely lead to more trouble for the economy. “However, note that inflation will follow. More trouble for the economy! Tradeoffs everywhere,” he added.
