LordAdam16:


Ideally, increasing minimum wage should boost consumer spending which leads to increased revenue for businesses and translates to increased taxes (both from businesses and citizens) which should help fund projects and at least make up for the higher wage bill.

But Nigeria is far from ideal. The ratio of recurrent to capital expenditure is at least 70:30. The increased wage bill will increase the recurrent expenditure. And it'd be hard to make up for it because we import most things (capital flight) and people and businesses (SMBs mostly) don't pay taxes. Factor in the inflation that'd occur after the wage increase and the fact that we're barely gaining anything from the increase in oil price after paying for subsidy and FAAC sharing in Abuja; and it is likely, this minimum wage will almost certainly not have a positive effect on government projects.

Nonetheless, the minimum wage increase is overdue. Naira depreciated back in 2015 by almost 50% and inflation has been running non-stop in double figures for the past 3 years. This increase is meant to plug leaks, it wouldn't drastically improve the welfare of workers.

The last minimum wage that GEJ signed off on was from 9k to 18k, a 100% increase. This 18k to 24k increase is around a 35% increase. NLC should have grounded this country since the beginning of 2017.

-Lord

so in summary, minimum wage increment will only increase consumers purchasing power and thereby inflation is expected.
wow its true.... SMBs... don't pay taxes
thatnks alot

3gunz:

What was the price as at May 29 2015, that's where you should quote and stop being a tool.

Fuel hikes up when there's scarcity.

Your point is moot.

The price might have been higher on that date but N87 was still the official price during that era.

baliyubla:


Edo state currently pays 25k as minimum wage, and it never owes, its all about priorities. These Governors can conveniently pay 50k as minimum wage if they wanted to. Go to the inner circle of these Governors for 1 week, and see what they use our common wealth for, trust me you will puke. Really hurts to see impoverished Nigerians like me and you, still holding brief for those idiots.

Leave them, it's not that these governors can't pay, but they don't prioritise the welfare of their citizens. If a state doesn't have the wherewithal to pay the proposed minimum wage, then it's their duty to find the means to source the money to pay the salaries, that was why they were elected, bunch of gibberish.