'Wage Increase Not Solution', Top Economist Says as Strike Looms Over Minimum Salary

'Wage Increase Not Solution', Top Economist Says as Strike Looms Over Minimum Salary

  • A Lagos-based economist, Yakub Ayeyemi, has tackled the organised labour on its demand for a pay rise
  • Ajeyemi, in an interview with Legit.ng, said the labour's demand for N494,000 as minimum wage might lead to “inflationary pressure” on the economy if assented to
  • The expert explained that any increase in the minimum wage will have multiplier effects, especially, on the manufacturing sector

Legit.ng journalist Ridwan Adeola Yusuf has over 9 years of experience covering public journalism.

Ikeja, Lagos state - Amid the growing clamour by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) for a significant upward review of the workers’ wages, an economist, Yakub Ajeyemi, has said that wage increase at this point would have little or no economic impact on the living conditions of the masses.

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"Our problems": Analyst speaks as Labour rejects N494,000 minimum wage

Speaking in an interview with Legit.ng, Ajeyemi stated that having more money does not translate to a quality life.

Expert considers ‘new minimum wage’ demand unwise
An economist, Yakub Ajeyemi, has said labour's demand for a pay rise is the wrong move. Photo credits: @officialABAT, @NLCHeadquarters
Source: Twitter

He argued that what is needed is to increase productivity so that the purchasing power of the naira will be strengthened.

The current national minimum wage is N30,000.

Ajeyemi told Legit.ng:

"From my point of view, how many are the workers in Nigeria? They are not up to 40% of the population. If these people are those whose salaries are increased, what happens to the rest?
“The remaining segment of the public is going to rely on the workers’ increased wage, and at the end of the day, the workers will be left with little or nothing to take home."

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He continued:

“The labour union is not prioritising their need. They should know what they want. Increment in wages is not the solution to what we are presently experiencing in the country. Rather, they should emphasise on the government to work on the insecurity in the country. Number two, reduction of fuel price, and number three, to also reduce the transportation fare. And that would not come until there is a reduction in the fuel prices.
"So, we should not be looking at increments for workers alone. There are many issues that surround workers’ welfare which the labour union has not taken cognisance of."

Read more on minimum wage

Minimum wage: PDP chieftain knocks FG's proposal

Earlier, Legit.ng reported that Rilwan Olanrewaju, a chieftain of the Peoples Democratic Party (PDP), condemned the N54,000 minimum wage proposed by the Tinubu-led federal government as the new minimum wage.

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Labour, private sector clash over new minimum wage demands

The PDP chieftain maintained that the government's proposal is chicken feed compared to what workers are being paid in developed countries whose policies are being copied.

Source: Legit.ng

Ridwan Adeola avatar

Ridwan Adeola (Current Affairs Editor) Ridwan Adeola Yusuf is a Current Affairs Editor at Legit.ng and a certified journalist with over 9 years of experience. He edited Politics Nigeria's articles, was the Acting Editor of AllNews Nigeria and Fact-Checking Researcher (Africa Check). He received his HND in Mass Communication from The Polytechnic Ibadan. He received a Certificate of Achievement (Journalism Clinic’s Fix The Leak masterclass, 2021) and also completed Google News Initiative's Advance digital reporting curriculum. Contact him at ridwan.adeola@corp.legit.ng.

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