New minimum wage in Nigeria: Simple ways of truly resolving the challenges of setting new minimum wage

Considering the economic realities in Nigeria, all the parties involved in the current new minimum wage faceoff are right. Labour is right when the pegged the minimum wage at N30,000.00 as that will not be enough to take care of an average family in Nigeria. And, those saying that they will not be able to pay the N30, 000.00 are equally right considering that they’ve not been able to easily pay the current minimum wage of N18, 000.00.

We have to understand why we are here in the first place, and that will help us to know how to get out from this ugly situation if we want to. First of all I think if we are having proper planning at all levels of government, it will give us a better picture of what to expect from our actions or inactions. Most of the states depend mainly on federal allocations for salary payment as well as to execute other capital projects. Apart from the ghost workers syndrome, some of the employees are just working in the public sector because their people are in power not because they have jobs they are doing that are positively contributing to the economy. Also, the nation is depending mainly on petroleum and other sectors are not being harnessed properly. The infrastructures to power small businesses are in short supply and in return most businesses do not willingly pay taxes to the government and the list of the reasons why we at this sorry state is endless.
The simple ways to truly begin resolving the issue of minimum wage that will not be disrupting the Nigerian economy again include but not limited to these suggestions.
1. Setting of minimum wage should be based on prevalent economic realities
2. State governments should consider generating revenue internally
3. Recruitments into the public sector should be based on required need of manpower not just for settlements
4. The Government should consider lowering the salaries and allowances of the Executives, Legislators and others with outrageous pay cheques to reasonable amounts.
5. Each state should determine what they can pay base on their productivity
6. Government should have the political will of making it possible for each state to control their resources and pay tax to the federal government.
Kindly keep your contributions coming.

https://www.goodgovernance.com.ng/new-minimum-wage-in-nigeria-simple-ways-of-truly-resolving-the-challenges-of-setting-new-minimum-wage/

This is a very concise and perfect explanation of the situation on ground.

The truth is too much of our paltry resources are wasted on paying salaries of executives, the legislature and the many redundant staff and parasitic ghost-workers.

We need to be looking towards a productive rather than a consuming economy.

If all things stay the same or continue in the same proportion then there would be an inflation.

It's not about what you are paid, it's about how much it can buy. Even if they get paid N100,000, without an improvement in productivity the economy will be inflated.

Take it or leave it. The economy is about to experience inflation except something urgent is done.

It's one thing to agree to pay; it's another to do it.