₦airaland Forum

erniok2:
Truth is the new minimum wage will cause severe inflation. Rent will astronomically go up, there will be loss of jobs are so many company may not be able to pay. It's going to be a very rough ride. Best idea would have been subsidy in govt owned transport system, have an understanding with the Chinese government to buy trucks and let govt take over food pricing and movement to mitigate food inflation, etc.

@ the bolded. Are you sure you know what you're saying?

No new minimum wage has been signed into law yet. They're still negotiating. Wait until a new minimum wage is signed before you start speculating what will happen after.

735i:
Do you ever process your thoughts before you post?
60k minimum wage means people can spend more. Demand will rise... manufacturers will be incentivized to increase supply... translates to more jobs which translates to more taxes for the government.

Companies are shutting down and leaving because cost of production is rising and demand is thinning out

My 8 year old niece knows this!

Stop make posts about things you know absolutely nothing about.

The only thing he understands his politics of sharing the national cake.

MT:
The "general price" cannot be matched by increasing salary, it will move up by default.

Be ready to buy 1000 naira bread for 5000 naira or 10,000 naira.

It is not me, it is what economics says

I'm afraid your understanding of economics is not good enough.

Economics says that when minimum wage is increased it will help boost the economy.

An increase in the purchasing power of workers due to wage increase will results in the demand for more goods and services which favours local businesses that will pay tax to the government to increase government revenue.

Manufacturers will also increase productivity to meet up with the surge in the demand for what they produce and wouldn't mind to reduce their prices so they can easily and quickly sell of they excess products they're now flooding the market with due to an increase in demand.

Employment will also results from such increase productivity as they will need more hands to work with them.

So it's not what you think. You people are only seeing one thing and blind the benefits of an appreciable increase in minimum wage.

The government"s attention is more focused on stealing what they can before their tenure expires and so don't care to listen how minimum wage can help the economy.

"Make I chop my own Na My turn. No be me go make Nigeria better " That's the mentality of the average Nigerian politician in power.

Modified. When manufacturers produce more it will increase supply to the market, and an increase in supply will definitely results in lower prices in the long run

Timmi:
Per your request:

PUNCH Lite
15 states yet to pay N30,000 minimum wage – CSO
19th October 2023
BudgIT

By
Temitayo Jaiyeola
Kindly share this story:


Fifteen Nigerian states have yet to implement the N30,000 minimum wage for their workers since it was signed into law in 2019.

This is as organised labour unions are set to push for a further increase in minimum wage following worsening living conditions in recent times.

According to BudgiT, even though 15 states are yet to implement the minimum wage of N30,000, the 36 states of the federation grew their cumulative personnel cost by 13.44 per cent to N1.75tn in 2022 from N1.54tn in 2021.

Also, these states grew their overhead bills by 23.42 per cent to N1.24tn in 2022.

The Civil Society Organisation disclosed this in its newly released ‘The States of States Report 2023.’ The organisation highlighted that the 36 states of the federation grew their revenue by 28.95 per cent from N5.12tn in 2021 to N6.6tn in 2022.

Commenting on the composition of the revenue, it said, “Put together, the Internally Generated Revenue of the 36 states appreciated by 12.98 per cent from N1.61tn in 2021 to N1.82tn in 2022, denoting a strengthened domestic revenue mobilisation capability. Nonetheless, the IGR to GDP ratio remained very low at 1.01 per cent. The increase in IGR did not reflect across board as 17 states experienced a decline in their IGR from the previous year while 19 states recorded positive growth.

“Occasioned by a 49.2 per cent increase in global oil prices, growth in federal transfers rose by 35.68 per cent from the previous year to N4.05tn, despite a 12.55 per cent drop in crude oil production,”

States’ reliance on the revenue from the Federal Government grew to 61.45 per cent in 2022 from 58.4 per cent in 2021, BudgiT noted. Despite their revenue struggles, the 36 states spent N8.2tn in 2022, more than the N6.58tn they spent in 2021.

Despite the struggles of these states, organised labour recently issued a two-week deadline to governors to commence negotiations on the N35,000 wage award for workers in their states following the terms of the Memorandum of Understanding signed by the Federal Government, the Nigeria Labour Congress, and the Trade Union Congress.

State chapters of the NLC and TUC handed down these ultimatums on Tuesday and said they had written to the governors. Recently the Federal Government agreed to pay N35,000 to all federal workers for six months beginning from September.

One of the NLC state chapter chairmen who spoke to The PUNCH, The Kano State NLC Chairman, Kabiru Inuwa, said, “We have written to the government requesting for the payment of the wage award to workers in the state and we are still waiting for the government to respond.”

Other states’ chapters of either the NLC or TUC that confirmed they had written to their governors include Gombe, Rivers, Benue, Ogun, Katsina, Niger, Ondo, Osun, Kwara, Kebbi, Bayelsa, and Delta

Share the link. Let me read myself. It appears there's a confusion between wage awards and minimum wage in what you have up there

noeloge82:
You have said it all but many think it's about shouting look at the current cost of food imagine what will happen to minimum wage increase that will lead to higher inflation Zimbabwe story may even be a child's play and some to of it the NLC controls less than 30% of the labour force because 70% are of the private sector and individuals so what's going to happen when they can't pay will be forced to shut down and increase unemployment

Zimbabwe's case was due to economic sanctions imposed on them by western nations and not just because they increased minimum wage.

Timmi:
I agreed 100%. The NLC should be about fighting corruption but they can not because they are part and parcel of the corruption in Nigeria. The aim of the NLC is to cause unrest because their own part LP did not win, hence this is about politics and not about the welfare of the working people.

When 15 of the States can not pay the current minimum wage of 30,000, how will they be able to able to 495k the useless Ajaero is advocating for, and inflation that will follow. It makes no sense but then as part of the Obizombies, Ajaero lack sense (both common and innate).

Mention the 15 states.

Labour has said it's only 5 States. So I don't know where' you people keep getting your figures from.

@TonyeBarcanista

Your op is replete with half truths and misinformation.

Unlike in other countries where more than 60% of workers benefit from minimum wage increase, only about 5% of the workforce in Nigeria enjoys it.The private sector in Nigeria have only few of them forced to pay it under the law. The others which constitute close to 90% of the employers of labour in that sector have been exempted by law from paying minimum wage. If you don't have 25 or more staff in your payroll as a private business owner in this country, you don't pay minimum wage. You're free to negotiate with your staff what you can afford to pay in such a situation.

And It's for this reason we have never experienced hyperinflation whenever minimum wage is reviewed upwards. It doesn't ever result to too much money entering the system.

Inflation is a normal occurrence in all countries of the world and it's not caused by minimum wage increase alone. No government in the world can prevent inflation from happening. They can only manage it. So I don't understand why you lots keep shouting inflation! inflation as if it's something that can be prevented from happening . Or can you mention any country in the world where there they don't ever experience an increase in inflation?

In this country and in other countries of the world, evidences from the past proves that it's only marginal increase in certain goods and services that usually occur, which is normal, whenever there's an increase in minimum wage , not enough to cause hyperinflation. The figures you gave to buttress your points is based on half truth. Minimum wage increase is not the only thing responsible for inflation. There are other factors involved which you haven't mentioned for a reason only you can tell.

Finally, Inflation is not same as hyperinflation. Please don't try to conflate the two. We never going to experience hyperinflation from an increase in the minimum wage of less than 5% of the working force in Nigeria.

The benefits of a reasonable minimum wage are too numerous to mention.

A very dumb special adviser on information that cannot differentiate between labour party, and labour union that is made up of workers from different political parties in Nigeria.

armo:
Maybe this is the chance for FG to make the civil service competitive once and for all. Agree to the pay the 500k minimum wage, then trim the fat, get rid of all non essential personnel and leverage technology for service delivery in the civil service

Our civil service asides security and other essential services can run with 30% of current staff strength. Too many employees carrying files and just hanging around at our government offices. Those who are remaining will feel the targets on their backs and will feel the need to actually work to retain their jobs eliminating corruption and inefficiency.

The question is, will the government be able to afford the cost of sacking 70% of those in the civil service?

The public service is not like the private sector where it's easy to hire and fire as you like.Civil servants are under contract with the government .So for you to sack them ,you will have to pay huge compensation which will amount to what you will use for paying them for about 5 years or more.

CharleyBright:
Mumu talk from selfish civil servants who arent adding much value to the nation.

I hate Tinubu govt with a passion, but that doesn't mean we must speak the truth on National issues.
498k minimum wage that Labour is demanding is far too outrageous and unrealistic. Labour Union and civil servants should stop these nonsense and face reality. Do they want to cause hyper inflation by demanding over 1000% percent pay rise? How can they request minimum wage be increased 15 times what it is presently. They are not talking of double or triple, they are demanding over 10x . What happens if prices of goods goes up even 3 times what they are now as a result of their demand?
Can Joe Ajaero pay his gate man 498k monthly?

The woman that owns the restaurant pays her workers 30k and sells her food 2500. If she has pay her work 15 times more to pay that 480k monthly, how much will a food of plate cost? Or you think, you will force her to pay 480k minimum wage and she will still sell her food N2500 Better wake up.
You will be buy a plate of food, 2500 x 15. Meaning she will sell her food nothing less than N30,000 a plate. Make civil servants tell me if they will afford to eat lunch. Same will happen with the pepper and garri seller as they will hike their prices. Same with your landlord. Same with transport fares. By end of the day, the 480k will become worthless and the demand has already caused unnecessary harm to the economy with hyper inflation.

FG should pay N90,000 minimum wage. That will be 300% increment.. If Labour don't accept 90k, they should be arrested. Arrest Joe Ejaero and Osifo and others. They can't hold the country down with unnecessary and unrealistic demands.

The 498k minimum wage by labour is just a proposal . Let the government come up with something reasonable, not 60k, and see if labour will reject it before you start condemning them.

During the last minimum wage negotiations with Buhari government, labour also did the same thing they're doing now by coming up with figure the government rejected until an agreement for 30k was reached. So history is repeating itself.

As for your claim that a food seller will pay her saies girl minimum wage, it's not true. Those category of workers are exempted from receiving minimum wage in Nigeria. Google the minimum wage act of March 2019 to know those in the private sector that pay minimum wage. . Less than 1% pay minimum wage in the private sector in Nigeria.

Minimum wage is mostly enjoyed by civil servants.

Streetinvestor2:
You think you are talking to an illiterate. What is the simple maths from 30k to 60k.why should I make my percentage increase comparison based on price of dollars. Is it dollars you are spending in nigeria. If you feel your employer is not paying you enough. You resign and try self employment.Are you glued to the work.Go and creaet your own employment and equally employ people.
It is not an option because you know you are just collecting free money plus all the cutting coners that happen in those offices. The government need to sack more than half of this workers.You go thr for any government thing,they waste all you time and frustrate you as long as you are not parting money.
We have plenty land let them go and farm

I haven't said you're an illiterate. But an educated person who did economics in secondary should be aware that one of common methods used in determining the value of a nation's currency is through its exchange rate. Your naira is not exchanging for much these days and that's fact. So stop living in denial.

And please stop telling me to resign from any work. I haven't told you where I work. You don't know offline to know what I do. If I'm
into business, you don't know.

Like I said before, minimum wage increase will benefit everyone in the long run. So we should all fight for it together with labour.

The government that you're defending are mostly concerned with how they can share our common wealth and don't want anyone to challenge or stop them.

helinues:
Are you aware that some states are yet to pay the N30k current minimum wage? They are still paying N18k, I won't mention states

You don't have the correct information. Only 5 States, according to labour, are not paying the correct old minimum wage of 30k, not 18k.

They're paying close to it, 25, 27 and 28 k and not that they're still paying the old minimum wage.

The news about the 5 States involved in this, with 2 denying it, was even on front page . Go check for it.

Modified. The 30k minimum wage has expired. So it's now refer to as the old minimum wage.

abc115:
Percentage of labour force under FG is less than 3%. If FG increases minimum wage to any amount, Nigerians are dissipating unnecessary energy for the welfare of less than 3%. What happens to 97%?

Currently, States paying #18k minimum wages:
Abia
Anambra
Delta
Bayelsa
Zamfara

How do you encourage these to pay #30k before you talk of #100k?

It is not decision of FG to make, but the joint committee members which are FG, States , LG and Organized Private Sector

Please remove Delta State from your list.

helinues:
Left to FG, they can pay N100k as minimum wage but what about the states?

States can pay if they want to. It's not about the money as you think but the willingness to pay .

The federal government has increased allocations going to states. It's almost times 3.

And because of this,Tinubu has been begging the governors to use the excess money they're getting from the centre to provide palliatives and pay wage awards to workers , but most of them have ignored him.

Only a few governors have done something in that regard . The others are silently stealing the windfall and pretending as if nothing has changed.

Namaster:
"...Special Adviser on Information and Strategy to the President, Bayo Onanuga, said the Organised Labour should be reasonable in its demand, except if it was using the declared strike to display its frustration over the loss of the Labour Party in the 2023 presidential election."

This guy is DUMB in a way that calls for a scientific research.

While the request of the Labour Unions is a bit on the high side, it's disturbing to see how the government continue to DISMISS their points.

FG keep treating them like stubborn kids to be disregarded rather than adults to be negotiated with.

I bet the dismissiveness is one of the reasons Labour is shutting down everywhere tomorrow.

Also, I'm starting to think the excuse about how much such an increase would cost the government is LAME. Only Tinubu and Shettima spent almost #9B on travelling in just 3 months.

I swear the man is really dumb. A special adviser on information who's not too well
informed to know the difference between labour party and labour union that's made up of workers from different political parties. His personal hatred for Ajaero has affected his brain.

He's not also aware of what's contained in the minimum wage act if not he wouldn't use his personal driver as an example.

Tinubu appointed someone not fit for the job
SMH.

PARADIZEPRIEST:
No sane Nigeria will join a fcccking strike from destain union.Because it will never work but disrupt private businesses.
ONLY SOLUTION FOR YOU NLC IS PEACEFUL PROTEST,BRING OUT MATTRESSES SLEEP AT NASS,ASO ROCK AND ALL STATE ASSEMBLIES AND GOVT HOUSES.AND THE MONEY WILL COME OUT. RICH MAN NO DEY LIKE DISCOMFORT,TAKE THE PROTRST TO THEIR COMFORT ZONES AND WE GET RESULTS.QED.

It's very clear you don't know that some
private business workers are also part of the labour union .

Streetinvestor2:
I don't have to compare the 60k to Exchange rate.And the civil servant I was talking about is those at federal. The level for minimum wage is the starting level.You should tell me how much the people in that category outside the civil service earn at the end of the month. If it is not good for start.Yoi resign and go try something else like farming

You're deflecting. You said 60k is 100% increase and I replied you it's not and explained how.

Focus on that and explained how it's what you claimed it's . That's all.

Why asking me to resign? Did I announce to you I'm a civil servant?

Contrary to what most of you think, an appreciable increase in minimum wage will favour everyone in the long run. It will stimulate the economy that's almost going comatose. Businesses will benefit from the increase patronage from workers who now
earn more, leading to such businesses increasing production and employing more workers .The government will as well benefit from sales tax.

So it's not what you think.

Streetinvestor2:
The work is not by force.The so called civil servant don't contribute more than majority of Nigerians on the street doing 8-6 pm work and still get less than that amount. This civil
servant go to work by 9 and close 4pm without doing anything serious and don't work on Saturdays. An office that should not be more than 3 person,you will see like 10 people doing nothing. If you feel the money is not enough. You resign and try private work or get self employed.
Who is speaking for the hard working Nigerians in small businesses,artisian and petty traders who work more and still don't see 60k by month end

Don't use what's happening in your state to generalise about civil servants.

Civil servants in Lagos state are actively engaged to do the work they were employed to do.
Besides you haven't shown you know the type of work civil servants are expected to do.

They're not employed to work like factory workers but mainly to keep records of government activities.

If the governor of your state is not working, what do you want them to do ?

In abia state right now where the governor is very active, civil servants ,unlike before, are now actively engaged and doing their work and resuming everyday.

Blame the governor of any state where civil servants are idling about. You blame civil servants but never asked the question why they still retain their jobs without doing anything.

As for the small business and artisan, direct your blame and anger to those who came up with the minimum wage act that exempted those category of workers. Labour leaders over the years have been pushing for an amendment of the law to include those category of workers, but those in government in conjunction with some business owners in this country, who want to continuing exploiting their employees have been blocking the move.

Modified. I expected you to critically respond to what I said about your so called 100% increase. You didn't do that but to react emotionally.

seunmsg:
Which law gives private businesses with less than 25 staff the exemption not to pay minimum wage?

Google the Nigerian minimum wage act of March 2019 . It's clearly stated there .

The Minister is not current. Is he not aware of the current exchange rate of naira to the dollar to say 60k is 100% increase .?

60k is actually a reduction. When Buhari approved 30k minimum wage 5 years ago it exchanged for $83.

60k is now exchanging for about $44 dollars , yet the minister wants to deceive himself that it's 100,% increase

Streetinvestor2:
The 60k is ok.That is 100% increase

It's not when you consider the current value of the naira to the dollar. The so called 100% increase is an illusion meant to deceive the gullible public

30k minimum wage approved by Buhari 5 years ago was $83 as at that time

At the moment, 60k is equivalent to about $44. So where is the imaginary 100% increase? Show me .

You have allowed the government to deceive you with figures, 60k, that doesn't amount to anything in the market

BreconHills:
You still don't get the disruptions thatva massive pay out would cause to the economy. So let us agree to disagree.

Massive pay out for how many of the total number of workers in Nigeria?

Doyin2:
A child is better than a mumu commenting.

The law is meant for minimum wage and not living wage.

It is not about what the employees want but what the employer can afford.

You people are very funny.
What's minimum wage and what's living wage?

And why is the government trying to fix minimum wage?

sheDD:
is not
It will have a snowball effect on our economy

Things will become more expensive than they are

I wish I can say more

So what you're saying then,

Minimum wage should not be reviewed at all?

Omenlon:
maybe some of you think only civil servants are the ones in employment. You people don't consider the private sector. How many companies can pay 100k minimum wage with all the challenges they are facing in trying to stay afloat in business.

Only a few in the private sector are paying minimum wage in Nigeria and that's because of the exemption most of them enjoy under the law.

Some large scale enterprise are already paying more than 100k to their lowest paid staff: those in the oil and gas , communications

seunmsg:
Do you have a business? Can you pay your least worker N494k? How many private schools, hospitals, restaurants etc can pay a minimum wage of N494k?

Abia state is a Labour Party state. It is one of the state that is yet to fully implement the N30k minimum wage since 2019. How will Abia state pay a minimum wage of N494k? Make it make sense.


Labour’s demand is unreasonable and unrealistic. It’s time for them to stop playing politics and make a sensible proposal. Anything above N100k is unrealistic.

Minimum wage is not for all private businesses in Nigeria. There are lot of exemptions in the private sector. So not all of them pay it. Private businesses with less than 25 staff in their payroll are exempted from paying.

You have called the 494k unrealistic. But what of government's 60k? Is that one realistic to you?

IAmHim1:
Jon snow

So because the world bank is white and I'm black so you listen to the white man

The same people that told you about coronavirus and how deadly it is

I'm sure you know a lot of people that didn't take the vaccine and are still alive.

Lol

You're quite easy to play

Just settle for one choice and be done with it

Hehehe. So the world bank is made up of only white people? Just look at you. SMH

I even mentioned economic experts, who are obviously Nigerians consulted by the federal government .But you skipped that because you don't take your time to read before replying ,and that is why you have been misrepresenting me.

I said, one of the reasons for the rising cost of food items in Nigeria is greed, but you interpreted to mean I said it's the only reason.

Modified. I'm sure you don't even know one of our own, Nkonjo Iweala was a former vice of the world bank, and almost headed it. Do you,Mr White man?

IAmHim1:
You're typing because you feel like typing..not because you need understanding


Price of food stuffs made locally is not going up because of greed

The greed was only triggered because of scarcity

If the goods was enough to go round and back, no body in his or her right Sense will thinknof storing and hoarding.

Because you can only hoard that much...and when the goods become too much in the market, price will crash and the hoarder will be at a terrible loss
https://www.nairaland.com/8081414/nigerias-inflation-state-federal-governments


There. That should give you your light bulb moment

You're projecting yourself. You're the one typing because you feel like typing.

You argued that it's the value of the nation's currency that's reducing and not price of goods increasing.

I said it's not completely true and gave my reasons. Debunk those and stop the wayward talk.

There was a time when it was unheard of for a profession footballer in the UK to earn 500k as weekly wages. But now they are earning it. Why? Is it because the value of the British pounds has reduced in value or due to what?

Paper money is an illusion, and it's something you're yet to understand .

And I repeat,( not meant to disparage you in any way),you still don't understand what minimum wage represents and why it's backed by law in Nigeria . If you do , you won't talk of any alternative .

Economic experts consulted by the federal government has advised minimum wage is reviewed upwards to 100k. The IMF and the world bank known for poke nosing into what's done in Nigeria,have not suggested any alternatives or discourage the move , but here you are talking of an unrealistic alternative because you have have succeeded in convincing yourself, deluding yourself, that you know more than everyone of those experts

I think it's enough for now.You can continue to share your thoughts with those who will listen. Good luck .

.

IAmHim1:
Hmmm

There is something you really need to understand and I believe you have a well laid foundation to understanding already

You want to know how I know that. It was from what you said

" By paying them wages not enough to enable them afford the basic necessities of life"

No ask yourself, how did the basic necessities of life SUDDENLY become unaffordable??

TA-DA!!

it was once affordable...but guess what...it's no longer affordable...so what the hell happened


Ponder on this in your spare time: The price of food stuffs in the market IS NOT GOING UP. it's the value of money THATS GOING DOWN!!!

that's why too much money is now chasing fewer goods

FIRST,

1) because there is fewer good ie our farmers due to insurgency CANT go back to their farms to produce food crop to feed the local population hence we resort to importation hence reducing the value of our currency further

2) because there is too much money in circulation BECAUSE OF EXCESS LOANS BEING GIVEN OUT!!!

by taking away the loans, the money in the economy is reduced AND if farmers return back to their farm and match the already reduced money with local production, then Nigeria is free from her economic mess


Go back and read my post and the links I dropped.

Yes!
A 50kg bag of rice can actually be #5000 and lesser and I have just given the most beautiful blueprint you'll ever ever read about, here or anywhere


You're welcome

What you have is a mono- causal explanation for why basic necessities are currently beyond the reach of the common man in Nigeria . Not everything whose price has gone up is imported in this country.

Greed by traders is one of the major reasons the prices of garri and other foodstuff has hit the roof top, and not just because the value of the naira has reduced. Do we import garri? No.

We're even exporting it right now resulting in scarcity of the product And scarcity we all know leads to price increase.

Also, artificial scarcity due to hoarding of garri and other food items is responsible for the current hyperinflation.

Finally ,a bag of rice can never be 5k in Nigeria. That can only happen in a dream. There's a reason why economics solutions hardly ever work in this country. Nigeria is filled with a lot of crazy people who do things abnormally.

Are you aware that manufacturers of sachet water in some parts of Nigeria have formed unions to dictate the price of that product, with the government doing nothing about it.?

A bag of sachet water should not be more than 250 naira, according to a friend into the business , but the union they're forced to join in the area where he has his factory, says everyone must sell a bag 450 naira .why? Is it we import water or the value of the naira has reduced?

By forcing people to join such unions, they have succeeded in eliminating competition that would have resulted in different prices for the benefit of the consumers.

Is that normal?

You don't yet know the county that you live in.

Juvechelsea96:
*MY BREAKDOWN OF THE ₦138,000 POSTULATED IS AS SEEN BELOW* :


*Food and Drinking Water ₦51,000(₦1,700 × 30)*

*Transportation ₦20,000*

*Housing/Accommodation ₦18,000 per month*

*Medical ₦13,500*

*Clothing ₦12,500*

*Education ₦9,500*

*Electricity/Power ₦5,500*

*Cooking Coal ₦5,000*

*Utility Water ₦2,000*

*Sanitation ₦1,000*

HAPPY NEW MONTH TO US ALL.

The 9.500k for education is very vague. For whose education is it?

And food, #1, 700k a day? Maybe you live in the north.

eddie7:
I do, very well if I must say.

Minimum wage is usually reviewed at intervals....either upwards or downnwards

You're arguing the impossible. Minimum wage has never been reviewed downwards in this country or elsewhere where it's implemented.

If you know the reason why it's always reviewed upwards,you wouldn't mention a downward review.

The condition that would necessitate a downward of minimum wage has never happened anywhere in the world. It will never happen.

It's only a dictatorship government that would attempt reviewing minimum wage downward.