The Senior Partner and Economist at SPM Professionals, Dr. Paul Alaje, has recalled warning the Nigerian Labour Congress and its affiliates not to accept any minimum wage proposal that is less than N100,000 per month......See Full Story>>.....See Full Story>>
Alaje made the comment following the release of Hanke Inflation Dashboard by American economist and professor of applied economics at the Johns Hopkins University in Baltimore, Maryland, Professor Steve Hanke.
Hanke measured Nigeria’s inflation at 115 per cent year-on-year in contrast to official data by the National Bureau of Statistics that said inflation in August was 32.15 per cent year-on-year.
The SPM partner, Alaje, said Hanke’s measurement reflects the current situation in different countries, especially the first 3 countries.
“However, Nigeria claims her inflation rate is 32 per cent y/y. It will be hard for authorities across the board to agree but this reality does not change. Everyone wants a good number. But a good number comes with good work,” Alaje said.
Alaje alluded to the impact of inflation and foreign exchange depreciation on the earnings of Nigerians.
The economist said the review of the national minimum wage by the Federal Government has been eroded by high inflation, the depreciation of the naira and the recent increase in the prices of Premium Motor Spirit (PMS).
Quoting Alaje, “A few months ago, I warned the NLC on the need to reject any amount less than 100,000 naira as the minimum wage. But, I saw how the NLC chairman jumped at the 70,000 naira minimum wage, which was far lower than $1.7 a day.
“Today, as the exchange rate worsens, the chairman of the Nigeria Labour Congress must have realised that ALUTA must be done with some level of understanding but not emotion. After all, the union is about protecting the interest of members.
“In a floating regime, any amount that is less than $1.9 or $2 a day will not make sense. This has an overall effect on the economy. What is the real problem here? The real problem is an unstable exchange rate. Naira is often devalued.”
THE WHISTLER reported that the NLC accused the FG of reneging on their agreement not to increase the price of PMS.
According to the NLC, the agreement was the basis of accepting the N70,000 national minimum wage.
NLC President, Joe Ajaero, said, “I repeat, we were betrayed by Mr President, That statement we issued over our being betrayed is being denied by officials of the government. I am repeating it that we were betrayed. Some of you here were at the meeting when Mr President said, Ajaero you are the problem.”
He quoted the President Bola Tinubu as saying, “Since we said subsidy is gone. You don’t want to allow us to increase again. If you allow me to increase we will pay you that N250, 000.
“The president said I am giving you one hour to decide on this and get back to me. He said he was going back to his office and we should decide over this (between N250,000 minimum wage and petrol pump price hike).”