nateevs:


This is disgraceful coming from you. This shows that whatever it is the President has agreed to was possible inthe very first place. Why has it taken the eve of an economic stand-still to reach the pact? If that was not disgraceful enough, you, by some incomprehensible way, reach the conclusion that this is "generosity" . . .


A typical PR stunt instigated by selfish spin-doctors who line up their pockets at the expense of the masses. Well orchestrated to trick bigots into the continual praise of the President's name and you of all fall for it?


Disgraceful!

mcelisus:

Pls some one let me know if we in the private sector are included.

hassymo5:

mcelisus:

Pls some one let me know if we in the private sector are included.

pak:

Is it just me ?
or
do i need more education on this issue.

I think the importance of increasing the minimum wage has been over-bloated by our labor leaders to serve their own purposes/ego.

I TOTALLY AGREE THAT THE INCOME OF MOST NIGERIAN WORKERS IS JUST TOO LOW.

But is the solution just to give everybody(worker) more money, I seriously do not think so.

I am not an Economist but my basic knowledge of economics tells me that
Increasing salaries ACROSS BOARD do not improve the standard of living of the populace, why ?

because at the end of the day we'll still buy from the same markets, rent from the same set of available accommodation and send our kids to the same pool of schools and you know what happens next, the forces of demand and supply do their trick.

If a section of the workforce e.g. the police have their salaries increased,(I believe this is important, considering the sensitive nature of their work, that's why many of them are damned corrupt, and while we are at it, we can also increase the minimum qual. and training for the force - my thoughts)
then we can talk of marked improvemnts in standard of living of that group.


I remember back in sec. sch when many used to claim that Nigeria is rich enough to improving the living standards of the citizen by distributing N1m to each and every Nigerian
I felt that line of thinking sounded silly, I still think so now.
The sad part is that even educated people still believe in such bunkum.

General increases in salary only increases the money in circulation and even some economist will argue that it has adverse effects on employment.
I think the emphasis should be on IMPROVED INFRASTRUCTURE, POWER , ACCESS TO HEALTH CARE, GOOD QUALITY ACCOMMODATION/EDUCATION AT AFFORDABLE PRICES, SECURITY etc. .

Increasing money in circulation will only benefit those who control the economy - THE RICH (yeah, you heard me right). The resources will still flow back to them.

They control the markets and the money ends up in the market, right ? ? ?

I remember way back then, My mum earned less than N400 per month, but guess what, she paid the school fees of like four kids, paid for accommodation (3 bedroom flat in lagos) and other living expenses with that salary. Now a N400 can only fetch you a plate of garri (not even enough for pounded yam).

I think (from my little knowledge of economy that the best situation will be to have little money in circulation but with a very high purchasing power. In that way, the impact of poverty will be felt less, cos little will achieve much).

I will so much appreciate contribution from seasoned/knowledgeable folks on economics. I am always willing to bow to superior knowledge.
but pls dont respond to this post with the line that senators are earning 100000000000000000000naira/second. Cos simply, if the earnings of the political class is too high, then simple solution is to have it decreased (seems more logical to me , or am I missing something here).
but to use that as a justification to increase the minimum wage of the remaining 100 million Nigerians is simply anarchy, Truth is at the end of the day, the percentage increases in their own paypack will always outstrip yours and the vicious cycle continues.

If the minimum wage was about ensuring parity between civil servants and their private counterpart (I have my opinions on this too but that's a topic for another day), then maybe the whole brouhaha might have some points.
but I dont think that's the goal anyway.


So I'll like to hear from you guys, I mean logical takes not just the sentiments or shouts of 'we are hungry, we are hungry'. I think we need a more intellectual approach.



PS: and I also think the agitation for the uniform implementation of the minimum wage across states is unfounded. I mean some days back i decided to get some condiments to fry eggs (dont mind me, I just love fried eggs)
and in the town where I am presently, N30 worth of tomatoes,pepper . . .  was TOO MUCH, had to tell the seller to reduce it, that I didnt need that much.
That same set of goods will cost you about N150 in abuja (ain't kidding), so the issue is if the market realities in each and every locality is different, how do you now use the same yardstick to determine how organisations (both Govt and private) pay their staff. In the US, each state determines its own minimum wage so why not Nigeria, why not let each develop at its own pace.
Why should Katsina (for example) forced to keep up with Lagos or Ekiti forced to have the same policies as Adamawa. ? ? ?

blank:

Oga, they have called off the strike so go to work.

BlueDiva:

@pak
You"ve made a lot of sense.

Increasing the salary of civil servants would not lead to inflation because civil servants are just a fraction of the workforce of the nation.

Increasing the income of both government and private workers will be what would lead to inflation, since then, they would be too much money in circulation, which then affects the demand and supply curve.

My opinion though.

Reference:

Agree with most of this except this (bolded). And this depends on from what perspective you view it. Most Nigerians unfortunately consider what they afford as a basis for the bottom-line. But this is wrong because you should rather consider what you produce. If you don't you create an imbalance which is called inflation.

Consider this scenario. A farmer has a piece of land and earns 1,000 naira a month cultivating cassava. He can do three things to raise his disposable cash - cultivate more land, raise his prices or borrow. Generally these options are mutually exclusive, i.e. it is very unlikely if you get into one, you'd like to take the other option. Nigeria has found itself in a position where because it has been perpetually locked in option 3, it has not been able to take options 1 properly, and is very dependent on others for 2.

If you want to find out the true state of economics in Nigeria, the private sector is a more realistic barometer. When the going is good they expand, when it is rough they contract. Does this happen with the public sector, no. Government and its wage bill has spiraled well out of control while real industries, real companies and the private sector workers have largely been thrown into the employment claptrap.

That is why today we have reached a situation where most states cannot pay this new wage without icing over capital development. However I don't really pity government, it employed these fellows in the first place. As we speak there are interviews being conducted left, right and centre into various institutions - the military, police services, NNPC, etc. To me this is just piling up problems for the future. They are not needed. The test of employment, promotions and wage increases should be productivity. Anything else is futile. Now it is not as if everything in government works - there is no electricity, security, bad roads, no steel from Ajaokuta (in those days yet salaries were paid). What are you increasing salaries for.

This only creates inflation and transfers incredible stress to the private sector and worst of all imbibes a mindset that promotions are a time based thing only and wage increases relate to cost of living. I have friends in the private sector who have been on fractional salaries for ages now for not meeting targets - a consideration for increases non existent, but that is the reality. Some companies have limits. When the wage bill exceeds a certain percentage of income they start sacking immediately. That is the reality. Like I said yesterday I would be surprised if the savoury effects of this increase are felt beyond October.

Those of us who try to do our bit are poised to increase prices too because private sector workers are Nigerians too and if we struggle to push more stuff to the markets (because of high operating costs) then prices have to go up. We say it again 'when are we going to strike to have our infrastructure fixed, when.'

werepeLeri:

Even in the UK- people threaten to go on strike and after many negotiations, people call of the strike- and yes, i think you can refer to it as generosity on the part of the management - example British Airways recently. Transport for London, Royal Mail and all the rest- after downing their pickets, they atil negotiate - and the word is negotiate - and in negotiations, if you understand, someone has to be "generous".

Dont hoodwink us about anything being disgraceful, it happens everywhere.

ufofex:

@ pak

Did you say you are not an economist? You just qualified as one. Great line of thought

BlueDiva:

@pak
You"ve made a lot of sense.

Increasing the salary of civil servants would not lead to inflation becasuse civil servants are just a fraction of the workforce of the nation.

Increasing the income of both government and private workers will be what would lead to inflation, since then, they would be too much money in circulation, which then affects the demand and supply curve.

My opinion though.

Reference:

Agree with most of this except this (bolded). And this depends on from what perspective you view it. Most Nigerians unfortunately consider what they afford as a basis for the bottom-line. But this is wrong because you should rather consider what you produce. If you don't you create an imbalance which is called inflation.

Consider this scenario. A farmer has a piece of land and earns 1,000 naira a month cultivating cassava. He can do three things to raise his disposable cash - cultivate more land, raise his prices or borrow. Generally these options are mutually exclusive, i.e. it is very unlikely if you get into one, you'd like to take the other option. Nigeria has found itself in a position where because it has been perpetually locked in option 3, it has not been able to take options 1 properly, and is very dependent on others for 2.

If you want to find out the true state of economics in Nigeria, the private sector is a more realistic barometer. When the going is good they expand, when it is rough they contract. Does this happen with the public sector, no. Government and its wage bill has spiraled well out of control while real industries, real companies and the private sector workers have largely been thrown into the employment claptrap.

That is why today we have reached a situation where most states cannot pay this new wage without icing over capital development. However I don't really pity government, it employed these fellows in the first place. As we speak there are interviews being conducted left, right and centre into various institutions - the military, police services, NNPC, etc. To me this is just piling up problems for the future. They are not needed. The test of employment, promotions and wage increases should be productivity. Anything else is futile. Now it is not as if everything in government works - there is no electricity, security, bad roads, no steel from Ajaokuta (in those days yet salaries were paid). What are you increasing salaries for.

This only creates inflation and transfers incredible stress to the private sector and worst of all imbibes a mindset that promotions are a time based thing only and wage increases relate to cost of living. I have friends in the private sector who have been on fractional salaries for ages now for not meeting targets - a consideration for increases non existent, but that is the reality. Some companies have limits. When the wage bill exceeds a certain percentage of income they start sacking immediately. That is the reality. Like I said yesterday I would be surprised if the savoury effects of this increase are felt beyond October.

Those of us who try to do our bit are poised to increase prices too because private sector workers are Nigerians too and if we struggle to push more stuff to the markets (because of high operating costs) then prices have to go up. We say it again 'when are we going to strike to have our infrastructure fixed, when.'

kyensco87:

did the government have to wait till the very last minute before they comply?