For years, the narrative has been the same — the economy withers and the common man cries out for reprieve, only to be met with an endless array of impediments. When it is time to intercede for the poor, Nigerians are met with pointless bureaucracy and palliatives. Foreign aid is rendered ineffectual thanks to the gauze-hand of leaders, through which it all slips through into an oblivion of their own invention......Read The Full Article>>.....Read The Full Article>>
In April 2024, the headline inflation rate rose to 33.69 percent, up from 33.20 percent in March 2024, marking an increase of 0.49 percent points according to the Nigeria Bureau of Statistics (NBS). Yet, to raise the minimum wage to a level that will help beat back hunger in the poorest families has become a problem for the government.
Per the International Monetary Fund, IMF, a determined and well-sequenced implementation of government’s policy intentions would pave the way for faster, more inclusive, resilient growth in Nigeria. Without reforms — such as raising the minimum wage — to enhance the business environment, improve security, implement key governance measures, develop human capital, boost agricultural productivity, Nigeria’s growth potential will never leave the realm of imagination.
“These reforms are crucial to boost investor confidence, unlock Nigeria’s growth potential and diversify the economy, and address food insecurity, and underpin sustainable job creation,” IMF noted in its recent report, adding that over the last decade, limited reforms, security challenges, weak growth and now high inflation had worsened poverty and food insecurity in Nigeria.
“While Nigeria swiftly exited the COVID-19 recession, per-capita income has stagnated. Real Gross Domestic Product (GDP) growth slowed to 2.9 percent in 2023, with weak agriculture and trade, and in spite of the improvement in oil production and financial services.
“Growth is projected at 3.3 per cent for 2024 as both oil and agriculture outputs are expected to improve with better security. The financial sector has remained stable, in spite of heightened risks. Food insecurity could worsen with further adverse shocks to agriculture or global food prices. Adverse shocks to oil production or prices would hit growth, the fiscal and external position, and exacerbate inflationary and exchange rate pressures,” the IMF said.
Yet, on Wednesday the pattern continued. Negotiations reached a deadlock due to the government’s perceived unwillingness to engage in fair discussions with Nigerian workers. The NLC National President, Joe Ajaero, in a sense is right to say that the government’s proposal of N48,000 as the new minimum wage is an insult to Nigerian workers.
It is no surprise that the labour unions are demanding a higher minimum wage to reflect the current economic realities and alleviate the suffering of Nigerian workers. The stalemate in negotiations may lead to industrial action, which could have far-reaching consequences for the economy.
Many labour in vain for decades for peanuts, only to be denied their pensions in old age. Of course, the Nigerian worker will down his tools in the face of great poverty, and seeming apathy from the government. The relationship between wage rate and employment is well established. Most revolutions throughout the world are dependent on the satiation of the labour force. The Federal Government should maintain an atmosphere of charity and responsibility. Like the Israelite Moses said millennial ago, let our people go.
