The nation was only a few steps away from potential chaos and confusion on Tuesday. We had a taste of the gloom that has been staring the nation in the face for a while with Labour flexing its muscles and threatening social and industrial peace. Not without justifiable cause, I must say. What with reckless spending assailing our sensibilities you would think the engine of public spending has gone out of control, or indeed broken down. How can anybody justify the mindless purchase of Sports Utility Vehicles, alias SUVs, one costing N160 million for each of the Federal legislators? This is an Assembly in which my old friend, Adams Aliyu Oshiomhole, sits as a Senator. He felt uneasy at first at the thought and raised a feeble protest. He, indeed, apologized for the protest he raised on Channels Television when he got to the floor of the Red Chambers a few days later. How can anybody defend the endless stretch of the Presidential convoy of Bola Tinubu that was witnessed in Lagos—about twice now? I had thought it was President Joe Biden that was in town. I had thought that Joe Biden, menaced by the heat of desperate Mr. Trump that The New York Times has said again is unfit to be President, was here to cool off. The New York Times’ first unflattering testimonial for Mr. Trump was in 2015. As part of the insensitive posture and unthinking of the Administration is the plan to build a N15 billion official residence for the Vice-President.

All of last week, the Labour principally made up of the Nigeria Labour Congress (NLC) led by Joe Ajaero and Festus Osifo’s Trade Union Congress (TUC) was determined to bare its fangs to press home their agitation for a new minimum wage regime. All of last week, they had asked their members to be on standby for last-minute instructions for a showdown. As of Monday, the air was thick with a foreboding of chaos and confusion, and the nation was made to hold its breath. Their unassailable argument was that in the economic circumstances of today, with the cost of living shooting through the roof, the current minimum wage of N30,000 is no longer realistic. At first, Labour themselves shot sky-high pressing for N615,000 per month as minimum wage for a worker. Later the figure came down to N494,000. The Federal Government first offered N48,000; it moved it to N57,000, but Labour described the government’s offer as “unserious.” As is in the nature of negotiations, the Labour’s first salvo at negotiation was a demand of a maximum of N497, 000 and the Federal Government seemingly testing waters came off with an offer of N48,000, later it jerked it up to N54,000. It raised it again slightly to N57,000. Osifo then had to say: “Our N494K demand is not fixated.”

The NLC president, Joe Ajaero attributed the minimum wage of N615, 000 tabled to the current economic situation in the country and he blamed the breakdown of negotiations on the position of the government and the Organized Private Sector. In his words: “despite earnest efforts to reach an equitable agreement, less than reasonable action of the Government and the Organized Private Sector has led to a breakdown in negotiations.” Labour’s “cost of living estimate” shows that a worker would require N270,000 to feed for 30 days and transportation would cost him N110,000. The Director-General of the Federal Budget Office said the current personnel cost for 1.5 million workers is N5trillion. If the government accedes to the Labour demand of N615,000, it would bring the personnel cost of the Federal workers to N11 trillion. The Federal Government has shifted again a little; it will consider N60,000 as the minimum wage. But Labour is insisting that nothing less than N100,000 would be acceptable.

To bring a quick end to the strike, President Bola Tinubu said he was committed to implementing a National Minimum wage that might be higher than N60,000. How much higher it was not spelt out. Even if Tinubu was prepared to agree to a higher offer, the state governors and the private sector are to be carried along. This is because payment of a minimum wage has a nationwide application. It is the least any employer of labour throughout the country is expected to pay his worker. When in the language of Ajaero the strike was relaxed, not suspended or called off, it was agreed that negotiation would continue for a week to arrive at a figure acceptable to all the parties—the two tiers of government and the private sector. The Federal Government team was led by George Akume, an experienced administrator and former Governor of Benue State. With him is the National Security Adviser, Nuhu Ribadu.

For the strike to have maximum bite the nation was plunged into darkness as the national grid was shut down, the banks were closed, dockworkers shut the ports, and airport operations were paralyzed. The Railway is traditionally, indeed historically the home of national strikes. It came as no surprise that there were no train services. The existing N30,000 minimum wage was inherited from President Buhari who had also inherited N18,000 as minimum wage from President Jonathan whose Administration sanctioned it in 2011. I recall Buhari’s passionate plea to Labour in 2018 to get workers to return to work. He pleaded with them to show greater understanding, especially in the light of what he described as gargantuan problems his administration inherited. He made a particular reference to infrastructural development his Administration had embarked upon with very lean resources.

He spoke of missed opportunities between and 2015, when, as he was wont to say, the nation had huge resources at its disposal. He said: “There is no part of the country I haven’t been to, having attempted to be President four times. I know the conditions of our roads. The rails were literally killed: there was no power…” despite the humongous amount said to have been spent in the sector. Speaking for him during negotiations to avert the strike, Boss Mustapha, Secretary to the Government of the Federation, told the unions: “The concern is not only for the welfare of the workers but also every other thing should be taken on board…So, it is a balance of the welfare of the workforce with the effect of the new minimum wage and the economy. We yearn to go above basic social protection for Nigerian worker but also tie it to the ability to pay, because many states are even having difficulty meeting the basic minimum wage.” Boss Mustapha said as of the time, 27 states out of 36 are at the moment encountering difficulties paying the then minimum wage of N18,000. It is the same argument in government circles.

In my view, this is the crux of the matter; it is where the problem lies. There are compelling arguments on both sides. How can N30,000 carry anybody in the economic circumstances of today and the cost of living triggered largely by the withdrawal of petroleum subsidy with its ripple effects, and the intractable insecurity ravaging farming zones of the country? On the other hand, a government which owes arrears in the payment of the current one will see paying anything higher as a pipe dream. Unfortunately, government functionaries are not setting the right example and the right tone. There is a display of opulence everywhere. Our governors and even the President live at practically no cost to them. They are fed by the state; their vehicles are maintained and fueled by the state. Their lifestyle is obscene. In other lands, hardly can you tell a senior government official, a minister, or any other ranking public servants from the ordinary citizens. Sometimes, you have the feeling that they are emancipating! Whether it was Obama or George Bush, they looked more battered in office than before they went into the White House. Indeed, Obama became an old man in no time with grey hairs mushrooming all over his head. As I did ask in 2018 on this subject of public spending: In what way had UK Theresa May or Donald Trump changed since they got into office, whether in their manner of dressing or in their physical appearance?

But no sooner do Nigerians get into office than they begin to bloat with their complexion glowing and all potholes on their cheeks filled up. They overdress you would think it is their wedding day. I recall Peter Obi once revealing to us that when he assumed office as governor, he found that a cow was being killed every day for real, imagined, or anticipated visitors of about 50 persons to Government House. He had to stop the wastage. Enterprising newspapers should dig out photographs of our public functionaries before they were elected or appointed barely a year ago and how they look today.

Michelle Obama said to Oprah Winfrey in conversation over her book, Becoming, that President Obama got the bill every month for every dish that the White House kitchen served his family. “They count the number of peanuts and you get the bill at the end of the month. You pay for your guests and the food they eat…You get the bill.” In 2018 I accused President Buhari of being lily-livered for his reluctance to confront the National Assemblymen, who were and still are scandalously the highest-paid in the world. Professor Itse Sagay blew the lid to the whole world that each Nigerian Federal senator earns N29 million a month. The figure following the strike by the Labour Unions this week has been re-issued to circulate in the social media. The figure was never confirmed nor denied by the Senate, nor have they been outraged that both Prof. Sagay and former President Obasanjo “scandalized” them. Although Obasanjo did not give any figure, his language on the subject was unprintable! The only voice on it came from Senator Shehu Sani, the irrepressible activist, who put it at N14 million, exclusive of some allowances. In the United States, a senator is paid $174, 000 (US Dollars) a year, followed by Canada $154,000 (US Dollars) annually; and Germany $119, 500 (US Dollars) yearly. Britain pays an MP (Member of Parliament) $105, 400 (US Dollars) a year. I invite my colleague, Eddie Madunagu to convert the figures into Naira for us to see. Some other mathematician may wish to work it out and throw the Naira equivalent into our faces. I have not bothered to update the figures. These were 2018 payrolls. That year, the then US House Speaker Paul Ryan was sleeping in his office because he could not afford the rent to keep two homes. His family was living outside Washington.

With the opulence and indulgences of our public officials, executive or legislative, how can anyone persuade workers that Nigeria cannot afford N70,000 as minimum wage? It will be interesting to see how the debate will go in the National Assembly when an Executive Bill is prepared and taken there after the Federal Executive Council and the Council of State must have sanctioned what the new minimum wage should be.

Having said that, I hasten to state that the timing of a minimum wage in Nigeria today requires deep reflection. There are fears of inflation rippling through the land afresh should there be a raise in minimum wage heralded by so much noise-making. The unions have no control over inflation, rising prices, and the calculation of the market women and transporters who are keeping their ears to the ground waiting for the outcome of negotiations. There will be rejigging and restructuring in companies to be able to accommodate the new level of human capital costs. Companies will worry about asset replacement costs, taxes, and reserves. All that will in the end lead to price hikes, job erasure, and a bourgeoning labour market growing still, which will in turn have security implications. To curb insecurity, special incentives will have to be worked out for the security agents which may necessitate contemplation of higher taxes! According to reports about 300 companies have shut down and nearly as many are reassessing their continuing operations! In the end, the new minimum wage becomes a vicious circle—going round and round in circles but getting to nowhere in particular! Arguably, perhaps; but it is clear to me that the gains are all illusions. According to the Daily Times issue of November 16, 1979, the salary approved by the Senate for President Shehu Shagari was N50,000 a year, for Vice-President Alex Ekwueme, N30,000a year and for a Senator N17,000 annually. That was 45 years ago. We can all see where we are today. At the end of every struggle, the worker comes out worse. And he goes again in search of another elusive victory by declaring yet another strike. What then is to be done?

President Bola Tinubu on Thursday in Abuja called on international development financiers to see Africa as a destination for growth and prosperity.

Speaking at a meeting with a delegation of the International Finance Corporation (IFC), a member of the World Bank Group, led by its Managing Director, Mr. Makhtar Diop, President Tinubu urged global financiers to consider more strategic investments in agriculture, infrastructure, research, and development on the continent.

"The IFC and the World Bank need to see Africa differently. I am glad an African is at the helm of affairs at IFC, and as an African, understands that the potential for growth, peace, stability, and prosperity is here.

"The world has to see us as a continent that can help the rest of the world, and not perceive us as backwards, unstable, and with leadership problems.

"The expectations of the rest of the world on Africa have to change. By looking at Africa as a potential opportunity and not a danger to the rest of the free world, we can stimulate growth and propel inclusiveness.

"You are at the helm now and in a position to change the perception. We are ready to change the narrative and work with you. Africa is open for business, regardless of whatever the perception may be.

"I am an African and proud to be and will maintain the strong position to collaborate with the rest of the world to see Africa as a destination for growth and prosperity," the President told the IFC delegation led by the Senegal-born Managing Director.

Acknowledging that Nigeria holds the second-largest IFC portfolio in Africa with an active investment portfolio of $2.1 billion as of April 2024, President Tinubu highlighted the importance of some critical infrastructure projects embarked upon by his administration, such as the 700km Lagos-Calabar Coastal Highway and the Sokoto-Badagry Expressway.

"We have made various attempts in the past to create dams, but issues with reticulation and irrigation remain. When we consider the living conditions in rural areas where crops are produced, how much funding is allocated for rural roads to expedite transportation to consumer centres?

"The goal of the coastal road and the Sokoto-Badagry Highway is to address this," the President said.

In his remarks, Mr. Diop informed the President that during his working visit to Nigeria, the IFC had engaged in productive discussions with Nigerian partners to enhance agriculture, increase food production through irrigation farming, upgrade transport networks, and bolster regional integration. 

Expressing IFC's long-term commitment to growing agribusiness in Nigeria, he announced that IFC has signed a $23.3 million loan agreement with Johnvents Industries Limited, a leading agribusiness for economic development and agricultural transformation, to develop the cocoa sector.

"We are supporting small and medium enterprises in the agricultural sector, and they are doing very interesting things. We need to bring in more big players into food production in the country," the IFC Managing Director said.

Mr. Diop said the Corporation is ready to partner the Nigerian government on new investments in irrigation, road infrastructure, and logistics around the airport under a Public Private Partnership.

He congratulated President Tinubu on his one year in office and commended his bold decisions to revamp Africa’s largest economy.

He pledged IFC's commitment to long-term investment in Nigeria, adding that its single largest investment in Africa is in Nigeria, where it has invested $1.2 billion in the fertilizer industry.

"We are here to support you. The world has been facing a lot of shocks and difficult situations which have affected many African economies," Mr. Diop said. 

Chief Ajuri Ngelale

Special Adviser to the President

(Media & Publicity)

In today's world, where financial stability is essential for a secure and fulfilling life, personal finance remains a glaring omission from most educational curricula. For many individuals, the journey towards financial literacy is a self-taught endeavour, with only a fortunate few benefiting from mentorship. However, the consequences of poor personal financial management are severe and multifaceted, ranging from stress and health issues to strained relationships and even untimely death. 

The repercussions of inadequate financial management cast a dark shadow over one's life, permeating every aspect with stress, anxiety, and, at times, despair. The inability to meet financial obligations, including essential healthcare expenses, can have dire consequences, exacerbating existing health issues and perpetuating a cycle of distress. Furthermore, the lack of foresight due to financial constraints stifles personal growth and obstructs opportunities for prosperity, creating barriers to realizing one's fullest potential.

Discipline and the influence of social circles play pivotal roles in the journey towards financial freedom. According to Jim Rohn, "You are the average of the five people you spend the most time with," underscores the transformative power of surrounding oneself with individuals who prioritize financial literacy and responsible money management. Discipline extends beyond mere budgeting and saving—it encompasses resisting the allure of impulse purchases and steering clear of detrimental habits like substance abuse and gambling. By carefully selecting friends and associates, individuals can leverage positive influences to stay committed to their financial goals and aspirations.

While increasing income and enhancing earning potential are essential components of financial stability, these pursuits should never compromise one's health and well-being. Strategies such as upskilling, and advancing in education can increase one’s earning potential while pursuing additional employment opportunities can augment income streams. Moreover, cultivating mindful spending habits, identifying and rectifying financial leaks, and prioritizing savings constitute fundamental pillars of sound financial management. Effective debt management is also paramount to ensure that individuals do not become ensnared by the burdens of indebtedness, but achieve true financial freedom.

Building an emergency fund is a prudent strategy to mitigate unforeseen financial setbacks. Accumulating savings equivalent to six months' worth of living expenses provides a safety net during periods of job loss, health emergencies, or other crises. Once an emergency fund is established, investing becomes the next logical step towards wealth accumulation. Diversifying investments across various asset classes such as stocks, bonds, real estate, and retirement savings account is essential for long-term financial growth. 

Insurance is a crucial safeguard against unforeseen events, providing financial security and peace of mind. Policies covering health, life, property, and income protection offer invaluable protection. By securing comprehensive insurance, individuals can mitigate potential losses Unfortunately, this aspect of personal finance is often overlooked. However, recognizing the importance of insurance and obtaining suitable coverage are essential steps toward safeguarding financial well-being and preparing for future uncertainties.

At the heart of prudent financial management lies budgeting—a roadmap guiding individuals toward their financial aspirations. A well-constructed budget aligns expected income with anticipated expenditures, providing clarity and accountability. It enables individuals to track spending, identify areas for improvement, and make informed decisions about their finances. Moreover, adhering to a budget instils discipline and cultivates responsible money habits, laying the foundation for sustained financial success and empowerment.

In conclusion, the necessity of personal finance education cannot be overstated in today's complex world. It is not merely a luxury but a fundamental tool for navigating life's intricacies. By embracing discipline, surrounding oneself with positive influences, and prioritizing budgeting, individuals can overcome financial hurdles and pave the way for a brighter future. However, to truly thrive financially, there must be a paradigm shift—a recognition that personal finance education should be seamlessly integrated into educational curricula, and accessible to all regardless of background or circumstance. Seeking professional advice, especially in areas; like investing and debt management, is crucial for making informed decisions and maximizing financial potential. With budgeting as a guiding principle and professional guidance as a compass, financial freedom ceases to be an elusive dream but a tangible reality for all who dare to pursue it.

Author: Kenechukwu Aguolu FCA, PMP, CBAP

Business Analyst | Project Manager | Chartered Accountant | Public Affairs Analyst

Abuja, Nigeria         This email address is being protected from spambots. You need JavaScript enabled to view it.

I’m opposed to minimum wage. And I know I’m saying this at the risk of losing readers. The minimum wage hurts the poor and vulnerable in whose name and interest Labour claims to strike.

Sounds foolish, right? How can more naira in the pocket of the Nigerian worker currently on a minimum wage of N30,000 be bad?

In a country where each of 469 lawmakers earns N13.5 million monthly, minus allowances, and office holders in the executive branch use large convoys and maintain large personal staff at the public expense, why should there be any fuss about the government paying N494,000 monthly as minimum wage to workers?

Bad example

The obscenity of public sector waste has been one of the strongest arguments for a new minimum wage. On top of that, there has been the inflationary impact of the adjustments announced last year by President Bola Ahmed Tinubu, especially after the removal of the petrol subsidy and efforts to close the arbitrage in the foreign exchange market.

The argument for minimum wage is that if some folks, especially politicians, have assumed the prerogative of helping themselves to the treasury by ingenious means, what is sauce for the goose must also be sauce for the miserably impoverished gander.

Yet, a minimum wage is one slippery slope guaranteed to take the gander from economic misery to wretchedness. Basic Economics by Thomas Sowell makes the point very clear, and the lives of those who might disagree will bear out the evidence.

Wage law trap

One, minimum wage laws set artificially high wages that can lead to lower employment opportunities, particularly among low-skilled workers. Take Nigeria, for example. Of the estimated 80 million labour force, skills among the largest demographic of this population (those between 25 and 34 years of age) are inferior.

A 2022-23 study showed that only one in 10 workers are managers, professionals, technicians, clerical support workers or occupations that require high skill levels. Most need to be better skilled and would be seriously disadvantaged in competing for any opportunity that may attract relatively high wages.

Remember that the essentially overpaid, underworked, and yet restive public service – whether at the federal, state or local government levels – comprises only a tiny fraction of the workforce. Nearly 90 per cent of Nigeria’s workforce, which may be affected by any artificial wage adjustment, are in the informal sector, that is, outside white-collar jobs.

Cutting your nose

If employers are forced to make hard economic choices about hiring or firing due to artificially fixed wages, the low-skilled and vulnerable ones whose battle Labour claims to be fighting would be the first to go. Minimum wage laws do not necessarily guarantee jobs, yet they make it more expensive to hire or retain low-skilled workers that such laws are supposed to protect.

Two, minimum wage may lead to further increases in prices. In 1974, when the government of General Yakubu Gowon accepted the Udoji commission report and nearly doubled salaries across the board, taking primary school teachers from N540 to N1,080, for example, price levels skyrocketed, even before the government implemented the new wages in the public sector! It’s convenient to say it won’t get worse until your maize seller or maiguard hears you’re now on a monthly salary of N494k!

Third, another unintended consequence of minimum wage is that it might reduce job opportunities for young people because employers may be forced to prioritise experience and skills. Also, minimum wage laws could reduce the chances of employment amongst groups, like the physically challenged, for example, who may be perceived to be less productive.  

Of course, there is the other side – those who argue that if left alone, the typical employer would squeeze the last productive juice from the worker before any wage adjustments.

Supporters of this position say that the fair thing to do to reduce income inequality, boost economic growth, reduce labour turnover, and promote social mobility, among other things, is to fix wages. Prominent economists Paul Krugman and Joseph Stiglitz belong here.

I don’t. And I have no regrets. Not that I don’t believe that fair is fair. My point is that that is not a lesson the government is competent to teach the market. If an employer – any employer – decides to mistreat its workers, it would only be a matter of time before such an employer would be out of business. In a free market, the skills and talents of the worker will, sooner than later, find better, more rewarding opportunities.

Other options

And who says minimum wage laws are the only way to encourage fairness and social mobility in the workforce? Earned Income Tax Credits (EITC), which target low-to-moderate-income earners or a more transparent variety of the Nigerian equivalent – conditional cash transfers (hopefully with a more reliable database) – is another way. Several African countries, including Kenya, South Africa and Ghana, have modified and adopted this system.

Also, market-indexed wages (here again, Ghana could serve as an example) remove the unending, disruptive cycle of national minimum wage negotiations and strikes. There are other options, including performance-based pay and flexing compensation.

Many workplaces today were built on the expensive brick-and-mortar model, which has become too costly and inefficient. Employers could consider flexible work hours or more remote options to reduce commute and overhead costs and encourage moderate wage compensations.

On whichever side you belong, the consensus among economists is that minimum wage laws increase unemployment among low-skilled workers, a bitter truth that Labour may be unwilling to face.

Of course, it’s not only minimum wage that is bad for jobs. Over-regulation concerning capital, high corporate taxes and levies, poor infrastructure and bureaucratic hurdles to contract enforcement are also bad for jobs, businesses, and workers.

Thatcher way

I don’t like Magaret Thatcher, primarily for her duplicity over apartheid. But she gets full credit in my books for saving Britain from the wild strikes of wild unions that brought the country to its knees.

Of course, it’s also fair to say that, unlike Nigerian governments, Thatcher did not break workers’ eggs to make her omelettes. She was not for the turning in her determination to free the economy from the shackles of unions and in her government’s example of austere living.

Yet today, Britain appears to be losing its competitive business edge. Partly a result of the resurgence of the unions and right-wing rhetoric, it falls among countries which have been worst for income in the last 15 years, with incomes across the board growing by just six per cent since 2009, making it a laughing stock among countries in its league.

Half-full

Nigeria is not listed among countries with the slowest wage growth at least in the last 15 years, a list which includes countries like South Sudan, Central African Republic, the Democratic Republic of Congo, Niger, Malawi and so on. Apart from bureaucracy and corruption, the main challenge for Nigeria has been the tendency, especially among states, the main power blocs, to prioritise rent and politics over creativity and competition.

The strikes and disruptions over wages are not funny at all. In the cauldron of Nigeria’s post-election politics, this may look, smell, and even feel like a continuation of the war by other means. But in the end, we all pay a price. And you know what? The serious world doesn’t care. It is moving on!

The attention of the Presidency has been drawn to two fiscal policy documents in circulation that are being given wide coverage by the mainstream media and social media platforms.

One of the documents titled Inflation Reduction and Price Stability (Fiscal Policy Measure etc) Order 2024 is being shared as if it were an executive order signed by President Bola Ahmed Tinubu. 

The other is a 65-page draft document with the title "Accelerated Stabilisation and Advancement Plan (ASAP), which contains suggestions on how to improve the Nigerian economy. President Tinubu received a copy of the draft on Tuesday. 

We urge the public and the media to disregard the two documents and cease further discussions on them. None is an approved official document of the Federal Government of Nigeria. They are all policy proposals that are still subject to reviews at the highest level of government. Indeed, one has ‘draft’ clearly written on it. 

According to the Coordinating Minister of the Economy, Mr. Wale Edun, “It is important to understand that policymaking is an iterative process involving multiple drafts and discussions before any document is finalised. 

“We assure the public that the official position on the documents will be made available after comprehensive reviews and approvals are completed."

Emanating from the two documents have been reports second-guessing government's policy on customs tariffs, fuel subsidy and other economic matters.

"The government wants to restate that its position on fuel subsidy has not changed from what President Bola Ahmed Tinubu declared on 29 May 2023. The fuel subsidy regime has ended. There is no N5.4 trillion being provisioned for it in 2024, as being widely speculated and discussed,” Edun stated.

The Coordinating Minister of the Economy further clarified: “As previously stated by government officials, including myself, President Tinubu announced the end of the fuel subsidy program last year, and this policy remains firmly in place. 

“The Federal Government is committed to mitigating the effects of this removal and easing the cost of living pressures on Nigerians. 

“Our strategy focuses on addressing key factors such as food inflation, which is significantly impacted by transport costs. With the implementation of our CNG initiative, which aims to displace high PMS and AGO costs, we expect to further reduce these costs. 

“Our commitment to ending unproductive subsidies is steadfast, as is our dedication to supporting our most vulnerable populations”.

We call on the media to always exercise necessary checks and restraints in the use of documents that do not emanate from official channels so that the members of the public are properly informed, guided and educated on government policies and programmes. 

Bayo Onanuga 

Special Adviser to the President on Information and Strategy 

In recent times, Nigeria has witnessed labor strikes as workers press for a substantial increase in the minimum wage to ₦459,000. While the demand highlights the struggles faced by many Nigerians, it's essential to consider the broader economic implications and strive for a balanced approach.

Economic Realities

Nigeria has faced significant economic challenges, including high inflation, currency depreciation, and fluctuating oil prices. As of May 2024, the inflation rate is 33.69%, and the exchange rate is $1/₦1,468.18. These factors have eroded the purchasing power of the average Nigerian worker.

The demand for a wage increase to ₦459,000 underscores the financial strain on workers. However, such a substantial hike may not be economically feasible.

The Demand: ₦459,000 Minimum Wage

Unrealistic Expectations

Inflationary Pressures: A sudden increase to ₦459,000 could worsen inflation as businesses pass on increased labor costs to consumers.

Economic Strain on Businesses: SMEs may face reduced hiring, layoffs, or closures, worsening unemployment.

Government Budget Constraints: Meeting such high wage demands could require significant tax increases or service cuts, harming the economy further.

A Realistic and Ideal Landing

Incremental Increase to ₦121,367:

Basis: This figure adjusts for inflation over the past 10 years, ensuring wages keep pace with the cost of living.

Feasibility: This increase provides meaningful relief to workers while being manageable for businesses and the government.

Steps Forward:

Structured Wage Reviews: Regular reviews and adjustments of the minimum wage based on inflation and economic growth.

Economic Diversification: Investing in sectors beyond oil to create more jobs and stabilize the economy.

Strengthen Social Safety Nets: Enhancing social programs to support vulnerable populations, reducing financial pressure on workers.

Improve Business Environment: Policies that support business growth, ensuring enterprises can afford to pay fair wages.

Conclusion

While the call for ₦459,000 minimum wage highlights workers' financial difficulties, it's crucial to balance this with economic realities. An incremental increase to ₦121,367, along with structured wage reviews and economic reforms, offers a realistic and sustainable path forward. By working together—government, businesses, and labor unions—we can ensure fair wages and economic stability for all Nigerians.

 - Suanu Natureal Nkipnee, ACA, ACIPM

Negotiations on the new national minimum wage hit a snag yesterday as the Federal Government’s negotiating team failed to present a new offer beyond the previously stated ₦60,000.

This development follows President Bola Tinubu‘s directive on Tuesday to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to finalize the cost implications of the new minimum wage and submit an affordable, sustainable, and realistic proposal.

The President had emphasized the urgency of the matter, mandating that the government’s new offer be ready by Wednesday to serve as a basis for resumed negotiations with Organised Labour.

This instruction was part of a broader call to expedite all processes involved in the discussions to reach a timely conclusion.

However, during the negotiation meeting that resumed at 3:30 pm on Wednesday, it became apparent that the government team was not ready to present a new proposal.

Sources close to the negotiation table told Vanguard that the government’s absence of an updated offer limited progress in the talks.

A source at the meeting said: “The meeting was adjourned to give the Minister of Finance time to meet the deadline given to him by the President to present cost implications to him.

“We just deliberated generally and then they (the Federal Government team) said we needed to adjourn because they needed to get to the President. You know he (President Bola Tinubu) gave them an ultimatum to give him the cost implications.

“So we could understand that they did not have anything to give us since they had not given the President the cost implications. Those present at the meeting were the Minister of Finance, Minister of Budget and Economic Planning and the Minister of State for Labour. So, we will be resuming negotiation tomorrow (today) by 2pm.”

On whether the Finance Minister gave any assurance of getting the President’s mandate before today’s meeting, the source said: “They do not have a choice, we are not bothered about them. We do not think they have a choice because they cannot disobey the President.

“If they decide to disobey the President or if the President decides to renege on his promise, we all know the consequences.”

[NaijaNews]

Six people have been rescued while 14 other miners are still being trapped, two days after a mining pit collapsed in Galadima-Kogo, Shiroro Local Government Area of Niger State.

Daily Trust could not independently establish if the six people rescued were alive or dead.

The permanent secretary, Niger State Ministry for Mineral Resources,  Alhaji Yunusa Mohammed Nahauni, blamed the management of the mining company for the collapse.

During a visit to the site of the tragedy where one person was reported dead on Tuesday, the commissioner said the collapse was due to lack of compliance and synergy between the mining company’s management and the community.

He said the governor earlier directed the suspension of all mining activities in the state and ordered a crackdown on illegal miners due to increasing security concerns.

He said, “The governor, through the ministry, had issued letters to all the emirates, instructing them accordingly,” warning that failure to adhere to his order would result in penalties.

He also urged the site engineer to consistently follow mining principles and operational guidelines to prevent future incidents, emphasising that safety should always be prioritised.

The ministry gave the names of the 14 victims being trapped as Abdullahi Yahaya, Ibrahim Mansir, Abubakar Isah, Friday Musa and Godwin Hussaini.

Others are Benjamin Ashafa, Zayyanu Ibrahim, Abdul Ali, Hamza Musa, Umar Abubakar, Joseph Madaki,  Ibrahim I. Ishiaku Kuta,  Abbas Musa and  Yakubu Mamman

While the State Emergency Management Agency had earlier said that 30 people were trapped, one person was killed and seven others rescued but severely injured, some locals said the number of miners trapped were more than the figures given by the authorities.

The police public relations officer, Niger State command, SP Wasiu Abiodun, in a statement, attributed the difficulty in rescuing the victims to lack of equipment.

[DailyTrust]

Former spokesman for the Atiku Abubakar/Ifeanyi Okowa presidential campaign in the 2023 presidential election, Daniel Bwala has said that his support for President Bola Tinubu is not for better for worse.

Bwala said he would easily work away if the President goes against the constitution of Nigeria and democratic Ideology.

He said this during an interview on Arise TV on Wednesday, insisting he had a good time with Atiku Abubakar but had to shift his support to Tinubu when it was clear the presidential election was over.

Bwala who was a strong supporter of former vice president Atiku, said, “It was nice that I supported former vice president Atiku and for the period I supported him, I gave my all but when I made a decision to support President Tinubu, it is just owing to the fact that the elections are over.

“We all know the problem we are in and if you’re privileged to have an attention of somebody who is now the sitting president who didn’t meet you in the first place but he felt that you have something to offer and said ‘Come and be a part of what we are doing in this government, let us see how you support good governance’, I feel it’s an honour.

“And don’t forget I was Asiwaju’s loyalist before. I changed party to Atiku, it is not a situation of going back to somebody you don’t know, I have always believed in him.

“The only thing that will make me withdraw my support for President Bola Tinubu is if he goes against the constitution of Nigeria and goes against democratic ideology but I do not see that happening because President Bola Ahmed Tinubu is on course.

“He is redefining the structure of our foundation and economy and I know that the decisions are hard, but they are definitely decisions that are going to work at the end of the day.”

[DailyPost]

Nigerians are groaning under the weight of food inflation which in March this year stood at 41.1 % as a result of the devaluation of the naira and high importation of food items. It is the same with transport inflation which currently stands at about 30% because of government unavoidable removal of fuel subsidy scam costing the country N3trillion loss yearly and consequent increase in pump price of imported petrol. Government has continued to appeal to Nigerians for more sacrifice while assuring us of greater gains after the current pains.

While most enlightened Nigerians identified with government plea that we cannot have omelette without first breaking an egg, many believe Nigerians are being asked to pay for the sins of unpatriotic Nigerians especially in the oil and banking sector responsible for our current economic nightmare. It was for this reason government came up with some palliatives and also set up a tripartite body of 37 members with organized Labour to look at the issue of minimum wage in the country.

Unfortunately, as it has turned out, if Joe Ajaero who has not been able to distance himself from the Labour Party and his group are not playing politics, they are out rightly incompetent. While it often takes as much as a year to negotiate a minimum wage in other climes, what manner of Labour leader after two strikes in less than a year, would declare  a third one, arrogantly labelled  “indefinite strike” without a thought for the health of the economy of a nation in distress?

The immediate cause of Ajaero’s current indefinite strike was because of a stall in negotiation by the tripartite body set up by government that has offered N60,000 as minimum wage as against Organized Private Sector’s (OPS)  N57,000 and Ajaero Labour’s unrealistic N476,000. Obsessed with the federal government headed by their political foe, Ajaero and organized labour forgot that besides the federal government, other stakeholders include the 36 states of the federation, 15 of who are yet to fully implement the N30,000 minimum wage approved by President Buhari in 2019  and 774 LGAs battling for survival.                                                       

For any competent labour leader, as observed by Daniel Bwala (Atiku’s former spokesman) on TVC programme on Monday, figures presented during wage negotiation must be based on available and verified government resources .The starting point according to him is to find out how much is accruing to government, its distribution and identifying sectors Labour believes can be starved of funds to accommodate its own demand.

In other words, Ajaero and his group ought to know that the main source of government revenue is taxation: (personal income tax, corporate tax, excise duties, export and import duties, royalties from oil and other minerals, government domestic borrowings through sale of government securities through stock exchange and external borrowings through bonds for long term government loans or borrowings from IMF or World Bank and foreign grants.)

The above revenue figures can be accessed  by labour leaders during budget debate and budget public hearing  while the  concurrent and capital expenditures the revenues  are to cover can also be scrutinized.

But instead of going through this constitutional process, what did Ajaero and his fellow politicians masquerading as union leaders do? They came up with arbitrary figures they claimed was based on cost of feeding an individual member of a family of six thrice a day for one month, citing the current price of imported bag of rice.

But we don’t need to be labour leaders to know that minimum wage is for starters and not for a family of six. In any case, when did the number of children a family decides to have become the criteria for fixing minimum wage in a nation operating a market driven economy?  We can as well advance Labour’s sloppy argument by saying since Islam allows adherents to marry four wives and indeed a member of the federal legislature once displayed his four wives and some two dozen children on the floor of the house, we might as well settle for four wives and 22 children as the basis for arriving at a minimum wage.

It is surprising that in their overenthusiasm to shut the nation and its wobbling economy down indefinitely, over their proposed unrealistic figures of N475, 000 for a cleaner or a messenger, they forgot the monster we are currently fighting is inflation.  Precisely because they believe they can intimidate the federal government and the state government including Imo State where they were once involved in fisticuffs with party rivals, they pretended they did not know that they cannot force private sector to give what they cannot afford or dissuade them from downsizing. A Senior Advocate of Nigeria invited to throw more light on the issue by ARISE TV on Monday evening did not weigh words. If asked to pay Labour’s unrealistic minimum wage, he would reduce number of lawyers in his chambers by half, he declared.

But more disturbing is the way Ajaero and his ill-trained labour leaders behave as if they are above the law. Their first strike just as this government was taking off was said to be illegal. Their current indefinite strike has been declared illegal by the well-respected Minister of Justice and Attorney General. And as if to confirm Ajaero’s penchant for behaving as if he is above the law of the land, last Monday in addition to ordering hospitals and international airports across the country be shut down, he also shut down the national grid, an illegal act that constitute a threat to national security.

President Tinubu is an avowed democrat who believes in the rule of law. And this is why he must ensure those engaged in illegal and callous shutting down of the national grid must be made to face the law. And with three strikes in one year, two of which were illegal, it is apparent, Ajaero’s goal is not workers’ welfare but destabilizing the country. We could not have suddenly forgotten that some members of his party called for military take-over following their electoral defeat in 2023.

Kano sibling spiritual wars

 Lamido Sanusi’s sermon at last Friday prayers centred on the need for Muslims to accept their destiny for good or for bad: “We must believe whatever happens to us is predetermined and what we couldn’t have is also from God”. For those who claim religion is the opium of the poor, the Hausa masses who literarily worship their emir and spiritual leader are not complaining over their lot in life? On his path, by focusing on the theme of contentment, Sanusi is doing his job of preventing social dislocations by those who live in abject poverty while emirs live in opulence or as Fela put it. (Suffer suffer for earth enjoy for heaven while the Pope and Iman de enjoy for earth).

A few years back, Sanusi also paid glowing tribute to his grandfather who supervised the famous Kano groundnut pyramids and his father who attended one of the best universities in the world. Sanusi, the father or the son, didn’t need to be troubled that the children of labourers who laboured day and night to cultivate the groundnut farms while emirs sent their own children to the best universities in the world, ended up as labourers. After all the policy of feudalism is ‘labourers born labourers’.  And precisely because  emirs’ word among the ruled, rich or poor, is law, his admonition to Ado Bayero, the deposed cousin he replaced  to accept his destiny, is in order.