₦airaland Forum

helinues:
Would the private sectors able to afford N100k?

Would the governors able to pay the amount without delaying?

You're not too well informed.

What's the percentage of those paying minimum wage in the private sector?

What's the current value of 500k as compared to when the naira was yet to be floated?

What's is minimum wage?

How is the minimum wage of a country arrived at?

If you know the answers to the above , you won't create this thread to call labour unrealistic.

ogbonti:
Thank you ? What a sense of senile entitlement

I may have made a hypothetical scenario, (for explanation reasons only) that was not the main focus of my analysis

Thats what shallow minds like you do, you amplify the inconsequential to drown the most important part of an argument which is “How do you pay people N600k ? the business - wether 100 or 200 workers.. IF the services rendered is not enough to generate the profit to pay people that amount of money, where will that money come from?

-

You're projecting yourself. You're the shallow minded person who can't understand what's explained for you in simple English language.
I already answered the question you're asking me again. Minimum wage in Nigeria is not for every employer of labour in Nigeria to pay.Some people are exempted and can negotiate what they capable of paying their employees. Na wah o. You nor they read

Minimum wage is law in Nigeria. You must obey the laws of the land once you're not exempted from minimum wage. 25 staff is what's required under the law.If you can't pay then it means your business is not profitable. Then close shop and look for something else to do instead of employing people to pay them slave salary. Slavery as been abolished long ago

I'm not the government who came up with the law. Direct your anger to the right people and not me

ogbonti:
Thank you ? What a sense of senile entitlement

I may have made a hypothetical scenario, (for explanation reasons only) that was not the main focus of my analysis

Thats what shallow minds like you do, you amplify the inconsequential to drown the most important part of an argument which is “How do you pay people N600k ? the business - wether 100 or 200 workers.. IF the services rendered is not enough to generate the profit to pay people that amount of money, where will that money come from?

America here for instance has $7.25 as minimum wage. A fast food restaurant can pay even $9.50
an hour to their workers becase based on their sales on a given 8 hour shift, that worker makes a profit for the business worth $50 from the fries he cooks, burgers he prepares, packing of the food, delivery at the drive through- all that - so the fast food company has no problem paying even $10 an hour to that employee- which is even more than the minimum wage.


But in Nigeria, What value is your gate man, your driver, your messenger- your cleaner providing to warrant that amount of money - N600k a month? You cant tell me—-/ instead you are whipping up sentiments of applications for thank you mesaages on nairaland when you cant even answer a basic question.


For instance, If my company driver who claims he deserves N600k minimum wage fails to come to work for a month, will my business suffer a loss of N600k? heck No


I will drive myself to work, or probably catch a uber to work - pay N2,500 to go to work, N2,500 back which is N5k - X 20 work days a month = N100k … and then I dont even have to buy fuel because the uber ride is not my car


so what justifies that N600k pay for that company driver ? Even if there are 200 workers in that company- Business organizations are not charity- earnings are justified and if the cost/ benefit doesnt tally, it wont work - that position will be eliminated, the driver loses his job. Would you rather he is employed and earns N75,000 or is unemployed and looking for N600k (minimum wage work) without access to shi shi at the end of the month?


A person who makes $7.25 minimum wage in America can only do what someone who earns N60k to N75k can do in Nigeria - do you know how much is monthly rent in the USA ? No apartment is less than $500 a month in rents, and that must be some ghetto apartment with lots of crime, poor sanitation and general terrible neighbors. So a person making $7.25 and works 160 hours a month, which is (40 hours a week) Thats $1,160 a month before Taxes- Take away 10% Federal Income tax, ($116) take away $80 for Social Security and Medicare, whats left ? $964

He or she pays $500 for an apartment- pays light $75, pays water $50 - buys monthly bus card to go and come back from work $50 - Feed himself for the month $250 (thats the least he can get to pay for food to last him a month) then he pays cell phone - some cheap cricket phone $39—- what is left ? $0

He cant buy beer, he cant buy a shirt, he cant even take a lady out on a date - No savinsg - so is this minimum wage of $7.25 a living wage in “Almighty America” ? Heck No


The rent took more than 50% of the earnings BUt you have people in Edo State, Nigeria who make minimum wage of N70,000 and their monthly rent in a comfortable apartment is N10,000 to N15,000 a month


So this “LIVING” minimum wage of N600k brouhaha going on in Nigeria is dead on arrival -

My friend go and Google the minimum wage act and get the answer to your questions and stop the emotional rantimg.

Your latest reply shows you didn't bother to read what I explained or bother to Google what they laws says about those who aren't capable of paying minimum wage in Nigeria. If you did, you won't keep asking me the silly question you keep asking me. You just what to use your common sense without making sense as it concerns the law.

There's a law guiding minimum wage implementation in Nigeria both in the public and private sector.Go and read it first and get
your questions answered before coming to Nairaland to display your ignorance
Mr MBA graduate.

SMH

Modified. Minimum wage law in Nigeria applies only to Nigerian workers who are qualified to receive it. It's not for everyone. Don't use the law in Nigeria it to interpret what's obtainable in the US
If you do ,then you're making a mistake .

Minimum wage in America is it monthly or hourly?

legallysly:
A very lucid and realistic analysis of this mess in which we have found ourselves.

Your proposals are top notch and are a sharp reminder of why Nigerians are hailed for their brain power all over the world.

It bothers me that some people are just interested in 'tanking' the economy so that they can say 'we told you so'. I am looking at my Secretary right now and I can barely afford to pay her curent salary which is less than 100k per month. How do I pay 200k per month (whether I make money or not)? I will not even consider the possibility of paying 250k, or worse, 500k to the least paid worker in an establishment. The ripple effect on the economy will be catastrophic.

The current minimum wage did not get us here, years of mismanagement of our various sectors (especially 8 years of Buhari's economic missteps) did.

If this currrent government has abandoned subsidy (it had no choice really as the outgoing government made no provisions for further payments beyond June 2023), it is ostensibly to channel the funds, some of which allegedly went into some peoples' pockets for doing nothing, into areas where they would be more useful.

I would assume that was the reason for floating the Naira as well. Previous governments before now, had spent a lot of money defending the naira and keeping the dollar at bay. Unfortunately, the last administration (Emefiele, in particular, will go down as the worst CBN governor we have had in a long time) did us no favours as it continued to defend the naira even when it was clear that this was unsustainable amidst low crude oil production, a comatose manufacturing industry and its terrible policies. I won't even go into the irresponsible loans that the CBN, through NIRSAL MFB, granted to Nigerians. Now that Nigerians are paying back through their noses, can we not all agree that such policies only made them poorer in the long run?

The naira will eventually find its level and the traders among us who sell imported goods can also help to bring down inflation by applying the new tax rates only to newly imported goods and not to those that they have had in their shops since last year.

The government (especially customs) should also reduce the tax rates and levies on imports (at least until the fog clears a bit) as the traders will only redirect the taxes and levies to the consumers who are essentially overpaying for old and (in some cases) substandard goods.

I firmly believe that the inflation we are currently experiencing in Nigeria at the moment is highly artificial and solely depends on we Nigerians. We already know that when the refineries start working and we reduce importation of fuel, while exporting refined products (hopefully with the Naira as the primary transactional currency), our local currency will grow stronger and imports will no longer cost as much. What we do not know (or appear to ignore) is that the traders will be reluctant to reduce prices. Prices in Nigeria hardly come down once they have gone up and this has more to do with the greed of the average Nigerian seller than anything else. They believe they will be selling at a loss and will therefore sustain those high prices until their old stock is cleared. This is one of the major killers of our economy. When a foreign used 2010 Toyota Camry which is 14 years old, costs upwards of 9 million naira, you know there is a massive problem. It will develop problems after a year and you will be back in the market for parts which will cost an arm and a leg, along with the other unrealistic fees that mechanics charge these days. When the inflation eventually comes down and the Camry is back to its regular N3,500,000.00, the unfortunate fellow who bought it at nearly 3 times the normal price is left to rue his loss. These are personal demons that we must, on our part, strive to exorcise before blaming the government. If we peg our minimum wage at 500k at this critical time, I can assure you that the current inflation will sound like a tea party compared to what will come next. It is therefore a bit worrisome when you realise that those calling for such an astronomical increase in the minimum wage know this too and it only leads me to inevitably conclude that this is just another power play towards 2027. If the economy is in tatters and we have become another Zimbabwe (my profound apologies to Zimbabweans here present), how will the current administration even dream of coming back?

More importantly, will such an unrealistic minimum wage, if implemented, not drive more workers to seek employment with public and government owned institutions while leaving those who remain in the private sector to fleece their employers to death? Eventually, both the public and private sectors will groan from the excessive financial load and ultimately crash; another cautionary tale for the greedy and hasty.

If you're having less than 25 staff in your payroll, you are exempted from minimum wage. That's what the minimum wage act says

Please try to Google the minimum wage act signed into law by Buhari in March 2019 to know everything concerning minimum wage and why labour is proposing 500k

A lot of persons are ignorant of the law and because of that keep insulting labour leaders as being unrealistic when they're not.. They're following the law and that's why the government is begging them to accept what they can pay.

helinues:
Sometimes, I don't know if some of you guys just want to be arguing for arguing sake.

You no do basic economy in secondary school?

No wonder you have been talking nonsense everywhere. You only have a textbook understanding of basic economics theory without practical experience of how it can be applied to real life situation. You finally exposed the level of your education.

Minimum wage can only cause inflation when a significant number of Nigerians are going to receive it. Nigeria is not UK or US where every worker receives minimum wage .
Less than less 5 percent of workers in Nigeria receives minimum wage, not enough to cause hyperinflation. .

If the one of workers will result to inflation in Nigeria,then those of your senators and house of Rep members who earn millions monthly should also cause inflation .

ogbonti:
Dude - you are the bricklayer here talking with emotions - Every system or country has more private sector jobs than public sector jobs --- If government jobs in any country is 20,000 for instance - know that the private sector (private owned companies) have 2 million openings or positions - so let me ask you, for instance ----- you want to provide a living wage for your gateman who is a hard worker and you have 10 employees in your company and that your company makes N3 Million profits a month -- IF YOU AND YOUR 10 EMPLOYEES EARN THE SO-CALLED MINIMUM WAGE OF N600K MONTHLY -- THAT WILL BE N6.6Million in salaries only ---- where will you get the remaining N3.6 Million to pay yourselves the "LIVING WAGE"? ---------------> This is even considering your company ONLY exist to pay minimum wage NOT to make profits or progress

Hehehe

You're the one working with emotions here because you're ignorant of the fact that minimum wage is law in Nigeria like everywhere else in the world.

It's not what you as a private business man has decided to pay your lowest paid staff based on what you make from your business.

If your profit as a business man after tax is not enough to enable you pay minimum wage, living wage, to the lowest paid staff in your organization,then don't employ those people .Do the work yourself until you can afford a cleaner, gardener, gateman etc. That's what the law says in Nigeria. But Nigerians don't like obeying the laws of their country.

Moreover, in Nigeria, it's only those in the private sector with a staff strength of above 25 workers in their payroll that are mandated by law to pay minimum wage. Less than that figure don't pay. In the public sector everyone is captured. No exemption. You just learnt something from me today and should be thanking me instead of trying to mock me.

Please Google the minimum wage act signed into law by Buhari in March 2019, read all of it to confirm what
I just explained ,and come back, thank me and then let's continue the discussion. .

ogbonti:
I understand your point but you are not answering my question about is it worth to someone at the minimum level such minimum wage - do yoi mnow what minimum wage is? its not for company executives or skilled managers- its for the lowest level employees and I gave you am example of a messenger- so please remove emotions and justify in terms of productivity- ! why a messenger deserves N600k salary !

Whatever his services are, will you pay him N600k if he were your employee? does his absence from work in a month cost the organization or company he works for profits or revenue worth N600k ? These are my arguments


I am sorry I may appear mean or insensitive to you because of my hard stance on this issue - but I have an MBA degree here at UCLA and this is how I was trained to evaluate wages and compensation - objective analysis, not raw emotions - This is why a soccer player can earn $500,000 a week for playing just 2 matches - of 90 minutes each and probably another 90 minutes trainingthat week - so for 270 minutes a football player made $500k while someone works for 40 years and will never make up to $500k in total earnings —/ you know why? The Value of service provided, the market for such services, revenue accrued for that service, demand amd supply forces, quality, all determines wages of every worker!

The bolded shows you don't understand what minimum wage is at all. You have a layman understanding of it.

Minimum wage is synonymous with living wage which is the least amount of salary that can afford an average worker the basic necessities of life for himself and his other family members. If 100k is what can make that happen,then that's the minimum wage and should be paid to him. If it's 600k then also pay him that if not you're enslaving the person.

So, do your honest calculations and tell us what can afford a cleaner with a family of 3 in the present day Nigeria the basic necessities of life.



Modified. You said you have an MBA and yet you don't understand the concept of minimum wage. It's a shame you're using what's obtainable in Nigeria alone where businesses are notorious for underpaying their staff to interpret what's minimum wage. And you also don't know that the value of the currency used in paying wages is what determines what you pay.
Will a cleaner in the UK be paid the equivalent of 600k Nigeria currency ?

thesicilian:
I'm not for any of them, I'm what you can call an innocent bystander. Those who are used to negotiations will realise that one of the major rules is never to demand for what the other party cannot give you. If you were an employer of labour and your employee (let's say a cleaner) that you pay N30,000 monthly walks into your office to demand for a 1566% pay increase to N500,000, what would be your first reaction? No matter how nice you are as a boss, I'm sure your first reaction would be to laugh before sending him or her out of your office

You people still think your naira still has value like before? No.

If the value of the naira still remains the same,then it's unreasonable to ask for 1566% increase , but when it has been devalued greatly, then it's reasonable to ask for an increase to meet up with current reality especially when you the employer has also increased the cost of either the goods and services you offer to the public to gain more money.

Tinubu led federal government has announced to the world that after removing subsidy and floating the naira government revenue has increased, it has tripled , and they now have money to share monthly to all the states in Nigeria.

If this is true why should the citizens of this country not also benefit. Or is the money only meant for the governors?

Vision101:
You can go ahead and pay #1m and face the consequences.

Which consequences?

You think 500k of today still has value?

Your naira is almost as worthless as tissue paper. These days,it doesn't exchange for much with other major currencies of the world, the dollar and pounds.

The actual value of your 500k is 3 times less in value than what it was a year ago. But because your mind is still stuck in the past when 500k was worth something, you still think paying that amount as minimum wage is too much money. It's not.

What can you get from the market these days with 500k that can match up with what you got a year ago? Is it food, clothing, transport or what?

The actual value of a nation's currency is what it can get for you from the market and not the figures attached to it.There are some African countries whose citizens are being paid millions in their local currency which when converted to naira will give you less., thousands in naira ,instead of millions. That's exactly the same situation the present government as created in Nigeria after floating the naira.

Tinubu led federal government has created an imbalance in the system and the only way to balance things so the economy doesn't crash in the long run is to increase wages to meet up with the current economic climate. Purchasing power is not like before.

Anything less than 250 to 300k we lead to more problems for the economy.

Manufacturers in this country are already complaining that their products are pilling up in their ware houses because of little or no saies yet you're here talking of consequences based on your theoretical understanding of what you read in an economic textbook which doesn't apply in real life.

If the naira still has much value like before and there's no inflation in the country,then, it may lead to consequences if minimum wage is increased to 500k. But unfortunately your naira is almost as worthless as shit money and so, 500k is nothing and won't result to that you fear may happen.

Cmanforall:
I'm glad to know there are still reasonable people who can evaluate this situation.

I've made somewhat similar comment on certain posts. And some NL kids made derogatory comments.


Also, if the federal government should pay 500k as minimum wage, the ripple effect will cause prices of goods to go higher

And you think you know better than the economic experts in both the federal government negotiating team and those in the IMF who haven't said anything about hyperinflation?

What you fear is only possible if more than 80 percent in Nigeria will earn the minimum wage. The situation in this country is completely different than what's obtainable in countries where minimum wage is nearly for everyone.

In Nigeria, only less than 5 percent are qualified to receive minimum wage in both the public and private sector. So, tell me, how can that translate to too much money entering the system to cause hyperinflation?

Just rest . Your fears are unfounded. It's based on a very wrong application of basic economics theory and principles you learnt in secondary school. You need to learn more.

Most of the people here calling labour leaders unrealistic are very far from being realistic.

They're yet to understand how labour union leaders arrived at the initial figure of 615k , now reduced to 500k. If they knew, they wouldn't call them unrealistic. The federal government negotiating team has not for once used the word ,unrealistic ,to describe labour's proposal because they understand what's at stake. They're even begging labour to come and continue the negotiations while some here on Nairaland are shouting , "unrealistic! unrealistic ! , hyperinflation hyperinflation"! as if they know any better than those in the negotiating team.


500k of today is no longer not what it was before the naira was floated. The true value of a country's currency is determined by what it can purchase from the market and not just the figures attached to it.

A year ago if you take 500k to the market,what you buy is much more than what that same about of money can get your today.

The people calling 500k huge money are financial illiterates who are blinded by figures and still have their minds stuck in the past where that amount of money in Nigeria was much more valuable than it's currently is.

At the moment, the true value of 500k is Just over 150k when you consider the current exchange value of the naira to the dollar. A year ago the amount of dollars you can exchange 500k with is about 3 times more than what you get today. So how is 500k still huge money?

JohnOkolo:
Nicely said.

That’s my fear and I really wonder how Labour will come to a conclusion of 615,000 Naira.

You do not have to be an economist to know where we will head as a Nation if the government heed to their outrageous demand.

This minimum wage is suppose to be reviewed constantly but what the Labour guys do it only when there have something to gain politically- which is destabilization of the country.


#615,000 Naira how many states can afford to pay that.

And it will plunged everyone into hyperinflation that even those not earning directly from the government, states or private sector will suffer.

Those guys are dunce fools

@ the bolded, you're the one who's now trying to make it a political issue. Minimum wage review is done once every 5 years and it's law. You're ignorant of the minimum wage act hence the reason you think labour is doing it against the government.

MasterTeeUSA:
Another idiotic statement. The US Minimum wage is $7.25...$1160 per month...that is not enough to pay monthly rent in some places even a 1 bedroom apartment. When you think, at least don't speak ignorantly. Minimum wage is not based on the most expensive area. If you are not making enough to live in Lagos or Abuja, its called relocation.

Raising the minimum wage significantly will increase inflation and prices of everything will go up leading back to square one....but you don't know that because your brain is domiciled in Nigeria and you think wisdom is local.

So a civil servant should relocate to another place because his salary is not enough. Just like that. Do you know how the civil service operates in Nigeria or even elsewhere.?

Please focus on Nigeria and don't use another country with a different set of circumstances to argue blindly .

MasterTeeUSA:
Another idiotic statement. The US Minimum wage is $7.25...$1160 per month...that is not enough to pay monthly rent in some places even a 1 bedroom apartment. When you think, at least don't speak ignorantly. Minimum wage is not based on the most expensive area. If you are not making enough to live in Lagos or Abuja, its called relocation.

Raising the minimum wage significantly will increase inflation and prices of everything will go up leading back to square one....but you don't know that because your brain is domiciled in Nigeria and you think wisdom is local.

Don't insult yourself because haven't done so.

Minimum wage of either 300k or 615k, can only result in hyperinflation when a significant number of Nigerians start to earn it.

You're completely ignorant of this fact hence your alarmist claim of hyperinflation.

In America, nearly everyone receives minimum wage. But the reverse is the case in Nigeria where less than 5 percent are paid minimum wage.

In economics , we say, "all things being equal". It's seem you have forgotten that statement from your economics class in secondary school.

Economics theory and principles don't always apply in real live ,if it did ,we would have resolved every challenges faced in this country. You don't know more than the economic experts in both the federal government negotiating team and those in the world bank or IMF who haven't said anything about hyperinflation if minimum wage is increased.

You're just making noises with your very poor grasp of basic economics theory and principles and how they apply to real live situations.

In any case, your breakdown is still rubbish given the current economic climate in the county.

Modified. You think 300k or 615k is raising it significantly? You're obviously blinded by figures and can't see that that amount is 3 times less in value than what it used to be just a year ago. 615k is now about 150k in value going by the current exchange rate of the naira to dollar. You don't know this because you don't travel out of the country to do business.

mokwechineme:
You are striving so much explaining to idiots with zero understanding common statistics but what can one do.

I appreciate you dear.

Thank you. So many of them here are not too well informed.

MasterTeeUSA:
That is what others are for...you can adjust things as you see fit. RENT can be N300k ...this is the lowest of the lowest...Room and Parlor... now if its a single person...cut everything in HALF

Rent will be N150k to N200k...Yes, it will only rent a ROOM self con or a face me slap you with shared kitchen and toilet...well, single person just starting off should start slow.

Your analysis, I believe is based on where currently you live. Every worker in Nigeria don't live in the same location as you to spend the same about of money monthly. I have lived and worked, in Lagos, enugu, port Harcourt and now delta state to know better. Where have you lived and worked in Nigeria?

In my location, 30k will only lead you to "soaking garri" nearly everyday until your eyes go blind .

People are spending an average of 500 naira to and fro everyday . In some places it's much more than that.

Please , if you're not working and married with children in Nigeria, keep your suggestions to yourself .

JohnOkolo:
Nicely said.

That’s my fear and I really wonder how Labour will come to a conclusion of 615,000 Naira.

You do not have to be an economist to know where we will head as a Nation if the government heed to their outrageous demand.

This minimum wage is suppose to be reviewed constantly but what the Labour guys do it only when there have something to gain politically- which is destabilization of the country.


#615,000 Naira how many states can afford to pay that.

And it will plunged everyone into hyperinflation that even those not earning directly from the government, states or private sector will suffer.

Those guys are dunce fools

You people are a joke.

You're blinded by the figure,615k and cannot see it's three times less than what it was a year ago.

Your country's currency has been greatly devalued after it was floated, and so 1 million naira today is three times less in value than what it was last year or the year before it .

Going by the current exchange rate of the naira to dollar, your 615k is actually about 150k . That's the actual value of what labour is demanding.

Honlucas:
First do you understand the statement minimum wage?

Then tell us what's minimum wage and what it translates to.

MasterTeeUSA:
NLC and TUC is acting like one person in the household work...

If the Govt is proposing N54,000...that is N108,000 per month and N1.296m per year.

Breakdown

Rent/Housing - N400,000 (Max) if you are at the bottom of the scale

School - Public Schools - N100,000 (N10k per month)

Food - N350,000 (N30k per month)

Transportation - N300,000 (N30k per month) - minus leave

Electricity - N60,000 (N5k per month)

Data - N48,000 (N2k per month per person)

Others - N38,000 (N3k Per month)....You can save more if you choose lower RENT (Room and Parlor is enough to Start a Family - ONE Bedroom FLAT)

Keep in mind...this is for 2 people at the LOWEST part of the SCALE with a child. Most people should not marry unless they have upped their level at their places of work and this couple should also have something on the side to do that is bringing in money...and if you plan to have another child, space them ...4-5yrs, income would have increased and so on.

What of health ,clothes and other social engagements.

30k is presently not enough for a single person to have a balanced diet in Nigeria every month.

Cmanforall:
Your government can pay 1million as minimum wage, I don't care.

Watch how things will become very expensive. Mark this post!

What happened in Zimbabwe will soon be a child's play

Your fears are unfounded and you're misinforming the public.

The root cause of what happened in Zimbabwe was economic sanctions imposed on the Robert Mugabe led government by western nations, and not just because they increased minimum wage too much. Please get your facts right.

Minimum wage can only lead to hyperinflation when more than 90 percent of a country's population is going to receive it. In Nigeria, where things aren't normal, it's only less than 5 percent that benefits from minimum wage once it's reviewed upwards. A lot of employers, especially those in the private sector, are exempted from paying it. If you don't have 25 employees and more in your payroll as private a employer of labour in Nigeria , you don't pay. That's what the law says. Those who aren't exempted under the law in Nigeria usually lie about their staff strength to avoid complying..

In addition ,this is not the first time minimum wage is going to be reviewed upwards in this country. Evidences from the past shows only marginal increase in some essential commodities was what we got. Transporters won't increase their fares due to increase in minimum wage .They only do so when the cost of fuel goes up. Not every landlord will increase their house rent .

And at the moment, businesses are desperately looking towards and increase in minimum wage to stimulate economic activities once again. Workers purchasing powers has been reduced drastically and people are not buying as before.

So ,in the present circumstances they dare not increase prices unnecessarily after an increase in minimum wage . It will backfire and they know it as it may lead to further boycott of their goods and services . Most people have either found an alternative or done away with certain products, indomie and bread for instance.

So ,if you consider all I just explained, you will understand why it's very wrong for you and your likes to continue to sound the alarm bell of hyperinflation that will never happen.

And again,, the value of 300k for instance, is not what it used to be. You're blinded by figures and cannot see the actual value of that which you say is too much. It's not too much when you consider the exchange rate of naira to dollars.

Finally, minimum wage is law and it' must translate to a living wage for an average worker in Nigeria to afford the basic necessities of life for himself and his family members. Anything less than minimum wage is slave salary.. And because slavery has been abolished long ago is the reason most governments in the world have enabled laws to ensure their citizens are paid a living wage so they're not enslaved in their own country.

mokwechineme:
You are very ignorant. The law says - any firm, organization that has 10 employees and above

Don't mind that person. They like to comment on things they're not too well informed on.

Angelfrost:
Good points, but let's face facts... Can this nation truly survive the fallout of paying a minimum wage of over 300k in this unproductive and corrupt economy?!!

The way prices of commodities will hit the roof due to more money chasing fewer goods will sink the nation into oblivion.


Labor needs to sit down with seasoned economists (they ought to have some in their rank and file), and find a way to make workers' lives better without plunging the nation into a calamitous HYPERINFLATION!


You don't just toss lots of money into people's hands without a buoyant economy to cushion their spending.

For me... Both sides of this debacle should come clean and be reasonable.

FG needs to seriously open up about the nation's finances... They have to show that they are cutting back on their excesses too.

Paying 250k to civil servants and just a few in the private sector wont cause the prices of goods and services to hit the roof top. This is not the first time the country is reviewing minimum wage. If it didn't cause prices to hit roof top in the past why should it now?

It's only when about 80 percent or more of the population receives that amount being proposed ,you can expect inflation. The people receiving minimum wage in the both the public and private sector in Nigeria is less than 5 percent of the population in Nigeria. This is what you need to consider before considering any talk of too much money entering the system after wages are reviewed upwards.

We're already experiencing inflation which has drastically reduced the purchasing power of most people. If minimum wage is not reviewed to create balance in the system,the Nigerian economy may finally crumble . Manufacturers are already complaining of recording very low sales and the reason is because there's not enough money in the hands of people to buy them.

Another thing is that the current value of the naira is not like before. So any increase in wages should take into consideration the current exchange rate of the naira to the dollar.

When Buhari approved 30k minimum 5 years ago,it was equivalent to $83 . Now, 100k or less which some persons are suggesting as reasonable increase ,currently exchange for about $66 .

So based on this, what do you think should be a reasonable upward review of minimum wage?

phemmie06:
Instead of these people to fight for good standard of living they are fighting for rise in wages that APC induce inflation will deflate for them

How eise do you fight for a good standard of living without demanding for a living wage to make it happen?

oluwaseyi0:
The money they are asking is not realistic
It makes labour union look like joker

What in your opinion will be realistic?

Iolo:
Ok. You seem to assume I’m against a wage increase. My comment never mentioned that. The FG must work with all stakeholders to increase the min wage. The argument is how much is reasonable…48k is not the answer and I agree with your sentiments there.

First off, your assertion that min wage impacts only civil servants is wrong. The min wage is a national law impacting every government and business and will become legally binding on everyone. This includes the cleaners and entry level workers at private companies (whichever of them is still paying the min wage).

My comment suggested a novel structure that makes everyone happy. I will summarise it again.

- FG sets a floor rate that binds to everyone (this will become the national min wage). For example 100k.
- FG sets a higher min wage for federal civil servants. For example 200k.
- State governments can set whatever min wage they want to set provided it is above the min wage.

The reason for this is the FG may be able to afford to pay civil servants more but most states can’t. Also, many small businesses will either lay off staff or go out of business if they become forced to pay an unreasonable min wage.

Finally, my thoughts around wage compression are a simple fact. Right now the disparity between the haves and have nots in Nigeria is massive.

Entry level is 30k and some professionals earn 5m monthly. You don’t find this in developed countries (excluding CEO / stock based compensation). My other suggestion is for the FG and states to solve for this by making the wage increment disproportionate such that lower income earners get higher increases than the senior folks. That also means less overall cost and increases the likelihood of it being sustainable.

.1. The reason I focused on civil servants alone is because they're the ones in this country that truly benefits once minimum wage is reviewed upward. Minimum wage in Nigeria is really not for everyone as you think though it's supposed to be so.

Majority of business owners in the private sector in Nigeria are exempted from paying. Those not exempted are reluctant to pay it with no one in government doing anything to force them to pay.

.1. FYI, the requirement for paying minimum wage in the private sector is 25 workers and above. That's what the minimum wage act which was passed into law in March,2019 stipulates.

But unfortunately, in Nigeria ,majority of the privately owned businesses which constitute the highest employers of labour are either operating as small or medium scale enterprises with a payroll of less than 25 workers which exempts them from paying minimum wage. Private businesses that aren't exempted usually lie about their staff strength to avoid paying minimum wage . This is Nigeria where most people derive pleasure from cheating others


2. Your recommendation for a different minimum wage for federal government workers and state workers is making sense to you because you're not informed at all of what the minimum wage act says ,and also why it was enacted in the first place after the one preceeding it was repealed. Please Google it and read so you can come up with something more reasonable.

However , from your comments I can see you're a well meaning individual who want the best for those around you ,but unknowingly , what you have suggested here concerning minimum wage is very wicked, and illegal under the law.. And I will tell you why I say so.

Section 3 of the current minimum act has voided your suggestion already that Federal government workers should be paid minimum wage of 200k while those at the state level should have theirs pegged at 100k with state government allowed to negotiate with local labour leaders on what they can afford to pay afterwards. If you mention 100k ,please break it down to show how it translates to a living wage. Don't just suggest something like the average Nigerian business owners who are notorious for paying slave salaries to their workers and don't care if it enables them take care of their basic needs .

The minimum wage act has criminalized any attempt for any employer of labour in Nigeria, not exempted , to reach any other agreement with their workers to pay less than what's approved at the federal level. Please read up the minimum act of March ,2019 to know this and make proper adjustment in your recommendations because what you have suggested is illegal . It won't be accepted.


Governors who refused to pay the 30k were commiting a crime and getting away with because no one was bold enough to challenge them. They can afford to pay but don't want to for fear they won't have enough to steal afterwards. Look at the immediate past governor of kogi state who refused to pay but was dipping his hands regularly into government purse to pay the school fees of his wards.

In 2019 when Buhari led federal government approved 30k as minimum wage,a bag of local rice then,was between 18k to 24k if not less than that ,and 30k during that period was equivalent to $83 . . Now, 5 years after when a bag of local rice is almost 100k ,you and some others here on Nairaland think 100k which currently exchange for $66 is realistic and reasonable? .


No it's not . You're actually suggesting workers should be paid less than what they're currently earning .

With a depressed economy plagued by inflation caused by removal of fuel subsidy and floating of the naira which has drastically reduced to the purchasing powers of Nigerian workers, it's very unrealistic and retrogressive to suggest anything less than 250 to 300k .
..
If Tinubu ever falls for the trap being set for him by those in the federal government negotiating team comprising of some state governors unwilling to pay minimum wage and signs into law 100k then ,it means he has taken Nigerian workers 5 years back in time if not more than that.

And it will be the highest form of wickedness ever perpetrated on citizens of this ciuntry by a democratically elected goverment which will automatically turn the much vilified Buhari into a saint
He will live to regret it as the opposition will use it against him that because he's clueless about the true value of the naira
he signed into law a new minimum wage which is less in value than the one signed by Buhari. But I'm sure he won't fall for the trap. The man is too smart.

Concerning wage compression which you also suggested, forget it. You're blinded by figures that's why you don't know that 100k of today is not the same value with 100k of 5 years ago. 30k minimum in 2019 was $83. A 100 k minimum wage( your recommendation) will be $66 going by the current exchange rate. Is that an improvement?

Top civil servants shouldn't be used as sacrificial lamb to bridge the gap between
the rich and poor. They have more responsibilities and also need to take care of themselves and the needs of their immediate family members .They deserve an improved salary package considering the sacrifices they've made serving the country for so long. They're not responsible for the current economic climate and shouldn't be made to suffer for what they're not responsible for.


This already getting too long. So I will end it here for now.

Iolo:
Here’s why it will cause hyper inflation. In Nigeria, minimum wage negotiations are never only about the min wage alone, they are also fighting for everyone along the chain.

When we went from 9k to 18k, salaries of mid level and senior civil servants also doubled. Same happened when we went to 30k. So if you 20x someone’s salary from 30k to 615k historically that means people earning more currently also have to be bumped up.

That is the irrationality of labor negotiations that didn’t start today. We realistically need to do two things as a country.

1. Set a national min wage to reduce poverty. FG then sets its own at a slightly higher sum and each state does same based on capacity to pay.
2. Compress the wage disparity between the lowest and highest earners to reduce inflation. That way lower earners get the highest wage increase (labor will definitely fight this) and people earning millions maybe don’t get any increase.


The FG knows the implications of having an unrealistic min wage. People will just float the law.

What's an unrealistic minimum wage?

Is this the first time we are having minimum wage reviewed in this country?

Why did it not lead to hyperinflation in the past?

How can minimum wage upgrade for civil servants who constitute less than 5% of the entire population in the country lead to hyperinflation ?

Or do you imagine that once minimum is reviewed upward then every single person in the country will start earning it, whether they're employed or not?

Do you know more than the economic experts both in the federal government negotiating them and in the IMF who aren't mentioning anything about hyperinflation during the ongoing negotiations.

Please answer every one of these questions in your reply.

FYI ,the 615k proposal by labour is because of what the minimum wage act says; that workers in the country should have their salaries reviewed every 4 years so they can earn a living wage. Minimum wage is a law which the federal government cannot go against. Please know this and stop resisting miimum wage review for civil servants.

Those in government who know the truth aren't listening to you and your likes.

Besides I don't think you know the criteria used in calculating a living wage if not you would have mentioned already what's realistic for government to pay.

48 k being proposed by the federal government is not a living wage . Thank you

Honchoslim16:
A simple question

Why didn't the Juju and Deities kill the people (whites) who came to steal them?

How come the gods become powerless at the sight of Europeans? 😁

Can someone just explain... We need to know how this juju works, or juju and the gods dey shy?

What's juju and what do you know about it to ask these questions?

Doyin2:
It is actually you should be asked whether you went to school or not.

Inflation is a function of money supply and not percentage of people.


You can calculate how many trillions the government will be spending only on wages, even if every worker earns N 615k per month!!

Private sector workers are also entitled to minimum wage.

You're making baseless claims. Back it with evidence please.
Show evidence of how the increase of minimum in the past in this country led to hyperinflation. That's all and stop saying things based on textbook economics theory and principles which doesn't always apply in real life.

Less than 5,% are civil servants in Nigeria. Moreover, not everyone in the private sector is required to pay minimum wage. There's a condition that must be met before they must pay minimum wage.

So your talk that trillions will be used to pay minimum wage once increased is you imagining things that aren't real.

FYI, the 615k is just a proposal.
You don't know enough hence your resistance to a living wage for workers.

1.Civil servants are about 5%

2. Not everyone in the private is mandated to pay minimum wage. You certainly didn't know this if not you wont say all the things you've said something far.

3. There's a minimum wage act which makes it mandatory that minimum wage is reviewed upward every 4 years for workers to earn a living wage. You also don't know this and the calculations involved to arrive at a living wage.

Go and get yourself better informed before you can discuss this with anyone
.

If a living wage would cause hyperinflation as most of you have been singing everywhere , you wouldn't be one to tell us . The federal government would have been saying so during
the ongoing negotiations, and even the world bank and the IMF who like to poke nose unnecessarily into the country's affairs all the time would have advised against.


Maybe you assume you know more than them. But I know you don't know. You're just overreaching yourself with the little you know,like some others here, to ring the alarm bell of hyperinflation when you don't need to.

zionstaar75:
you are a very sensible guy, which state government will pay 615k?do they know the kind of inflation that will cause?bunch of idiots

615k for about 5,% of Nigerian workers in the civil service will cause hyperinflation?

You go skol so?

Doyin2:
You need to receive some sense.


Dealing with corruption and oppression can never be via bogus wage demands,thereby worsening an already worse situation.


Has Labour ever protested against corruption and outrageous salaries of politicians ?
Oh you want government workers to also join in the treasury looting party ?

And so what happens to the private sector population which constitutes over 96% of the total population ?

Minimum wage of any country is a function of productivity and level of revenue.

The minimum wage in Nigeria is among the lowest in the world because our GDP per capita is also among the lowest in the world.

The total monies being stolen by public officers are not enough to pay N615k minimum wage,whereby a fresh graduate would now be earning like N2million per month!

How many Nigerian private sector companies can afford that?

Who tells you that a fresh graduate will earn 2m if miimum wage is increased to 615k?

That's not how it works in the civil service. The difference is not much.

Ask any civil servants you know to get you better informed before coming to Nairaland

Blitzking:
Govt can't pay 650k except you want them to print money and we become like Zimbabwe.. where we have 1 trillion naira note..you go buy bread 30k

Government won't print more money because salaries are no longer paid in cash like before.

These days it's bank transfer and not everyone withdraws cash to pay for goods and services.

Enemyofpeace:
it should not be more than 35k

Because you're jobless