BY MICHAEL KABADI
IN July 2024, President Bola Tinubu approved a N Minimum Wage for workers to the tune of N70 000 from the initial N30 000. But the paramount question being asked by right-thinking Nigerians is “can the new minimum wage tackle the new economic challenges, where a bag of rice is now sold for over N105, 000.
However, some states are yet to comply to pay the new minimum wage, citing scarce resources as an excuse : Sokoto, Zamfara, Oyo, Kaduna, Imo, FCT, Ekiti, Ebonyi, Cross river, Abia, Akwa Ibom, as at November 2024 has not complied yet, despite the Federal government pleading with them to comply.
If the organized Labour have to threaten those states with industrial action, where does that leave not only the workers or states, but the country in general. Despite a significant increase in Federal allocation, is it not share man’s inhumanity to man that some states are yet to comply?
As at 2013 when the minimum wage was at #30,000 a bag of rice was sold at #8000 meaning that a civil servant can confidently buy a bag of rice and still have money to fund other expenses, but currently despite the upgrade to #70 000 a civil servant who earns exactly can no longer afford a bag of rice especially when you earn the minimum wage, not to talk of petrol hike which has led to a mouth watering increase in the price of Transportation, as price moved above 700% from the previous price.
Transportation, Housing, School fees and other basic amenities that are impacted massively by the rise of Dollar in the parallel market are out of reach for the common man, those people who are renowned for working hard on a daily basis now feed from hand to mouth.
One of the effects of the new minimum wage is the loss of jobs, and especially small businesses who may want to cut cost on Labour or may even shut down due to Economic uncertainty.
On the other hand, the minimum wage in Nigeria is not indexed to inflation, therefore it doesn’t reflect the cost of living or the importance of social services, this means that the minimum wage may not protect workers from extreme poverty.
Then it’s adverse effect is reduced purchasing power, the minimum wage may seem to be an increase but with the Economic meltdown occastrated by the fall of the naira in the parallel market makes it a decrease.
Conclusively, the civil service in Nigeria constitutes about 30% of the working population, therefore the rest 70% who are either in the private sector or un-employed are left to lick their wounds as cost of living now threatens the lives of the living.
