Kingsley Moghalu, a former deputy governor of the Central Bank of Nigeria (CBN), says Nigeria’s level of productivity cannot support the N400,000 minimum wage the Nigeria Labour Congress (NLC) is demanding.
Moghalu disclosed this on his official X handle on Tuesday.
NLC had declared strike on June 3 over a new minimum wage
and the recent hike in electricity tariffs for Band A customers.
The labour and the Trade Union Congress (TUC) have
repeatedly proposed N615,500 and N494,000 as the new national minimum wage,
citing inflation and the prevailing economic hardship in the country.
Moghalu said the demand is deserving but not realistic and
therefore recommended a minimum wage of N75,000 to N100,000.
“In the debates on the national wage in Nigeria, we miss the
fundamental point: there is little or no productivity in the economy,” he said.
“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, the 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.”
He further explained that productivity can be achieved by
human capital development and electricity, amongst others.
“In fact, speaking about productivity, how productive is an
average Nigerian worker? How skilled is he or she, and thus how much value does
he or she create,” he said.
“I know we are all
upset at our insensitive political class, who do not care about the masses and
only for themselves. But the economics of it all is far more complex.
“Sadly, it is quite obvious that the political will to
reduce the waste in governance does not exist.
“Human capital development. Skills that create value
addition, which is economically quantifiable. Wealth creation and profitability
increase. Wages go up naturally. And, of course, the almighty ELECTRICITY.”
On June 3, the federal government and organised labour
reached an agreement to fix a new minimum wage that will be “above N60,000”.
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The same problem with Igbo. You are not FG, not labour union of any kind. Take ur suggestions to your village.
ReplyDeleteThen,
ReplyDeleteWhy do Nigeria government lavish same productivity money on senstors and house of representatives who are not making much impact on the growth and development of the country more than workers,
Please help the workers to better their lives,
There is dignity memorial n labour,
Ask other countries their wage in dollar equivalent