₦airaland Forum

thesicilian:
Exactly what I've been saying from the beginning. Now they're being reasonable

It's you who didn't understand what they were trying to achieve with their initial proposal . If they had started with 100k, the government would have just added an additional 10k to the old minimum wage and signed it into law.

MasterTeeUSA:
Mr. Simple Language...you should stick to the information without making it personal. You crossed that line, and you must be open to whatever response you get. You should read about minimum wages in cities and its effect on prices. It is simple economics. An increase in the supply of money will increase the demand for produce...if supply does not keep up with demand, it will drive up prices. Study Laws of Elasticity of Demand and Supply.

Case study - New York and Washington DC....compare that with the minimum wages of Idaho
Lagos and Abuja ...compare that with the cost of items in the North...I know you will say minimum wage is all the same in Nigeria...focus on the supply of money and its effect on the prices of goods and services.

You have been committing what's called statistical fallacy by using data from another country, America, to assert falsely or forecast inaccurately ,that if minimum wage is increased in Nigeria it will lead to disastrous consequences for the economy that's already depressed and plagued by inflation due to the actions taken by the federal government.

In Nigeria ,the situation is completely different. In fact, it's an abnormal one,no thanks to those who came up with the minimum wage act in this country. They didn't do the proper thing. Labour and other stake holders have been crying for years for an amendment of the law to include more workers .If the right thing was done more workers would have been enjoying minimum wage in Nigeria and your fears of hyperinflation would be justified.

There's a reason why it's said that Nigeria economic challenges defies economics solutions, and I just gave you an example of why it's so. We do things abnormally in this country and that's why we not making much progress. Your president removed subsidy and floated the naira without adequate plans in place beforehand to cushion the effect ,and now, everyone is affected in one way or the other.

Unlike in America and other places in the world where' minimum wage is paid ,it's only about 5 percent here in this country that will receive the minimum wage once it's passed into law .

That's why each time it's reviewed upwards, it's just like a drop in the ocean. The impact on the economy is hardly felt. It doesn't ever result to too much money entering the economy. In South Africa ,for instance,about 60 percent receives minimum wage. . America is much more than 60 percent .Compare those figures to Nigeria ,which is about 5 percent,and ask yourself if you have been making sense.

If you want to make sense,stop using America or any country where minimum wage is enjoyed by significant number of workers to forecast hyperinflation.

You're not wrong to say minimum wage will result to much more money entering the system. But that's only in theory. In real life it's not always the case, especially in abnormal Nigeria.

Focus on Nigeria and explain, using accurate data ,how it will result to hyperinflation and not inflation. Inflation is not a bad thing. It's normal occurrence in everywhere country of the world. Prices of goods and services will continue to rise based on the forces of demand and supply and that's very normal.

Hyperinflation is the only thing we should fear, and there's nothing to suggest that will happen here in Nigeria if minimum wage is increased for less than 5 percent of the working force.

If not for the Internet ,most Nigerians are hardly ever aware when there's an increase in minimum wage due to the number of workers to receive it,or they don't bother since they know it's mostly those in the public sector that benefits the more.

If you reply with your America comparison again, then don't expect any further response from me. It will prove to me you don't take time to read what you're replying to ,but only interested in regurgitating what you read from an economics textbook which you're misapplying.

ogbonti:
you so much believe in ------ IT IS THE LAW ----- please show me where the law is enforced in the states where it is not payed

I am agreeing with you ---- IT IS THE LAW ---- please prove me wrong that your MINIMUM WAGE LAW WORKS!!!! ndi ara

Na wah for you o! Owhe edo.

If Nigerians don't obey the law will it work?

Well ,my point of arguing that minimum wage is law is to prove to you ,contrary to what you believe,that it's not in the hands of private businesses to determine what to pay as minimum wage. It's the Federal government that set minimum wage so that those category of workers are not exploited by their employers. Anything outside minimum wage you free to do what you like.

And the law says, if you have over 25 staff in your payroll , you must pay it to the lowest paid staff in your business. Whether you're making profit or not , you must pay . If you can't, then, it's either you do the work yourself or make sure your staff strength doesn't exceed 25 ,if not, you will sanctioned when caught and also asked to pay some fine.

But trust Nigerians in the private sector to lie about their staff strength so they don't pay.

It's because of the dishonestly in the private sector, where they lie so they avoid paying, together with the other exemptions most
of them enjoy, I say minimum wage is mostly for those in the public sector in Nigeria. It's not for everyone. If people know this here nobody will be singing hyperinflation based on what they read from an economic textbook which doesn't apply to the abnormal situation in Nigeria.

If you want everyone to benefit from minimum wage or you don't like to be forced to pay it when you're not making enough profit in your business then agitated for more inclusion and also tell them what you want instead of calling labour unrealistic. Once a new minimum wage is signed into law by Tinubu there's nothing you can do again to change it until 5 years time.

ogbonti:
Am glad you know there is a problem --- and the big part of it is that it is outrageous - it is utopian --- such minimum wage cant be payed!!!

Which problem again now?

The minimum wage has not been approved yet. What labour is proposing is for negotiation . Don't use that to judge them
This is not the first time minimum wage is being negotiated in this country.

MasterTeeUSA:
Lol another one...please what is the percentage of people in civil service? Are they not surviving? Do you think you cannot make it in life if you or other civil servants don't work for the Govt? Let the locals get those jobs and yes I am fully Nigerian, and leaving the country has expanded my view beyond our entitlement mentality.

Who tells you I'm a civil servant?

Focus on the topic and not me. You're just a typical Nigerian with the mentality of,

" if it doesn't concern me, then I won't support it"

SMH

ogbonti:
how many of your states in Nigeria could pay the minimum wage of N30K since the law was passed ? ozuor una never fi t pay N30k na N600k ona won pay --- dey play in the circus called Nigeria


https://www.youtube.com/watch?v=EWLWnxCSrJQ

The governors not paying it are crooks. Federal government has increased their allocation after subsidy removal,yet they still refused to pay. Does that not confirm thar those governors are crooks in government house?


If you want to make sense,use as example the ones paying it .

ogbonti:
you claim something is A LAW - so close to, a bit above, a bit below, nearly to, quarter to the amount in the law --- IS THAT THE LAW? Igbakuan, uhun no gba be, Ozuor, am asking you?

Are you not a Nigerian?

Governors who have refused to pay minimum wage have been contravening the laws of the land without anyone bold enough to challenge them. The average Nigerian doesn't like obeying the laws of the country. That's the problem and the cause of impunity in government.

Well, if you still don't know minimum wage is law not only in Nigeria but elsewhere in the world, then no need continuing this conversation. You will never make sense with anything you say because you're stubbornly ignorant.

I have asked you repeatedly to Google the minimum wage act of 2019 to know better, but you have refused to do so for a reason only you can tell.

I have better things to do with my time than to waste it arguing back and forth with you.

Vision101:
Minimum wage law all over the world covers all workers whether private or public sector. It's a law that sets the minimum every worker should earn in a particular country. If I work in a company where my driver earns 30k and I earn #500k, if his pay is increased to 500k are you expecting my pay to remain the same?

This is my last reply to you. Stop disturbing me. I'm forced to tell you that you lack proper understanding of what you are talking about.

You're the one not too well informed about what you think you know.

First of all, the 500k being proposed by labour won't happen. So stop using that figure and focus on reality., That' figure is for negotiation purposes. This is what labour do each time they're negotiating with government.

Secondly, you just proved you don't know what's stipulated in the minimum act signed into law by Buhari in March 2019 and because of that you have been arguing from a position of stubborn ignorance and also from what you Googled about other country's minimum wage act which doesn't apply here in Nigeria.


FYI, apart from those in public sector,it's only private businesses with 25 staff and above in their payroll that pays minimum wage in Nigeria. That's what the law says. Go and confirm it. Contract staff, artisans, and some others in the private sector are exempted from receiving minimum wage. And again go confirm and come back and tell me I'm lying. Those in the public sector are the ones who enjoy minimum wage more than any

Just provide data in support of your claim. Don't just say things and expect me to swallow it because you're claiming accountant on a public forum where it's impossible to know if you're telling the truth or not.

If you're yet to know that's it's just about 5 percent of the workers in Nigeria that receives minimum wage under the laws of this county, which is not supposed to be so, then no need replying me. I won't read your nonsense and half truths anyone until you say something you can substantiate.

Just go and Google the minimum wage act to get yourself informed.

MasterTeeUSA:
Another idiotic comment. Wisdom is not LOCAL. It is important to know best practices before making decisions. I know you don't understand the difference between viewing within the box and analyzing things outside of the box. Your brain that makes sense is stuck in what is not best practice which is why we have low productivity. Learn and Listen...maybe you can add to your knowledge instead of insulting those who wishes to educate you.

I just debunked all your messages and now you go into trying to defend yourself. Look up the number of people that are not paid minimum wages and the number of people that are not paid living wages around the world...then look at minimum wages in line with inflationary trends. Of course you won't, your wisdom will remain localized

Educate yourself first before trying to educate others. And how did you " debunked" my messages? Show me one instance of that if you can.

You can't even prove your point with specific instances either in Nigeria or elsewhere where minimum wage increase for less than 5 percent of a country's population has led to hyperinflation.

Moreover you're yet to realize that the figures given by labour, 500k is for negotiations purposes

The only thing you know and very good at is using swear words and name calling. And you're not even coherent. You struggle to express yourself in simple English language.

Vision101:
Very funny man. You call a chartered accountant ignorant in matters of wages, finance and inflation. Anyway this is public forum. Have you ever heard of consequential adjustment? No further mention please.

Go back to your previous comment and see it wasn't consequential adjustment you talked about You were doubling each level like a layman as if that's how it's done in the civil service. You gave very wild figures. Instead of admitting your mistakes you want to brag.
The civil service wage structure is not the same as those in the private sector in case you don't know , Mr accountant

MasterTeeUSA:
Wrong ...not everyone in America receives minimum wage. Again minimum wage is not even enough to pay for rent ...some states pay more but not all professions pay minimum wage. When yall want to argue position, google is your friend. USE IT.

If there is an inflation based on significant increase in minimum wage, all the prices will increase because of increased demand. You are talking to someone that had As in Economics even in college at Micro and MacroEconomics. When the prices increase due to increase demand, what will happen to those not making minimum wage, they go further into poverty so civil servants can be OK.

Anyways, your NLC and TUC are about to go on another strike...something yall look forward to every year. GOOD LUCK smart a** since I am the ignorant one LOL

I didn't say everyone in America receives it. There's no where in the world where everyone receives minimum wage. I said nearly

Go back to read what I explained .

And why can't you focus on Nigeria? Are we discussing minimum wage in America or Nigeria?

Both countries are not the same and so it's very wrong for you to continue to use what's obtainable in the US to interpret what should be happening in Nigeria. You're not making any sense

Cmanforall:


Economic experts that are doing wonders to your Nigerian economy

I laugh

I don't fear anything.
It's you who will suffer it if things get worse.

I'm above suffering. My life is made already. I'm only here to fight for your own future so your government don't continue to enslave you.

ogbonti:
how many of your states in Nigeria could pay the minimum wage of N30K since the law was passed ? ozuor una never fi t pay N30k na N600k ona won pay --- dey play in the circus called Nigeria


https://www.youtube.com/watch?v=EWLWnxCSrJQ

I'm not surprised you came up with this half truth. You're not too well informed.

States not paying minimum wage are few and they're paying close to minimum wage . Some pay 27k 28 or 25k .

Some States are even paying more than the minimum wage. Why don't use those ones as example?

"Ara" ozour If you don't still understand that the 600k is just a proposal.

An MBA graduate who doesn't know minimum wage is law in every country. If you're asked to mentioned the states not paying and the ones paying, you won't be able to.

Vision101:
All these your epistle is meaningless. If the least paid worker earns 500k, the middle earners will most likely earn #2m - 5m. A GM will most likely earn #50m. The employers that will pay them will pass them on to the prices of their products and services. Then a packet of the cheapest biscuit will be #1,000. Landlords will increase average rent of a flat from present #600k to #2m.

What will be the worth of your currency and what did you gain by high wages.

Labour is just playing to the gallery to please the public. They know that their figures are unrealistic.

My friend you're ignorant. Minimum wage is for the lowest paid worker. Those at that top only enjoy marginal increase once minimum wage is reviewed upwards. It's not what you think. Go and verify from anyone you know working in the civil service.

Another thing, is that your mind is still stuck in the past and because of that you're not aware of the current value of your naira. It has been devalued after it was floated to the extent it's now almost as worthless as tissue paper. 500k doesn't have the same value like before. It's just about 150k now when you exchange it with the dollar.

And again, minimum is going to be paid to less than 5 percent of the population in Nigeria , and not everyone to cause inflation. If about 60 percent and upwards will receive it ,then you can start talking about inflation.

You're blinded by figures

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.