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The Impact Of Minimum Wage Fluctuation On Growth Of Nigerian Economy
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The committee had, while presenting its report to the Secretary of
Government of the Federation (SGF), Ahmed Yayale, in Abuja noted that
the N 18,000 minimum wage would not lead to inflation as being canvassed
in some quarters.
“The Tripartite Committee on National Minimum Wage
has recommended a national minimum wage of N18,000 per month for all
establishments in the public and private sectors employing 50 workers
and above,†Belgore stated. “The committee met severally and consulted
widely. It further took cognisance of the need to ensure that the
outcome of the exercise must be growth-propelled in terms of GDP growth
rate. “It also considered its capability of promoting rapid
socio-economic transformation of the country, which will not lead to
inflation spiral. The objective is aimed at alleviating poverty in the
country as well as maintaining macroeconomic stability.†Belgore (2010)
also suggested that to make the recommendations effective, the extent
National Minimum Wage Act 1981 and its subsequent amendments of 1990 and
2000 should, be repealed with a new wage act. Leadership of the
organised Labour had hinged their warning strike on the fact that
government refused to heed agreements reached with it after widespread
consultation. General Secretary of the Democratic Socialist Movement
(DSM), Segun Sango, had noted, irrespective of the fact that the
National Assembly had expressed its willingness to give the bill
accelerated passage that government failed to submit to the legislators.
Even some analysts have thrown their weight behind the Belgore
committee, describing demand for wage increase by Labour as justified.
There
is the need to adopt a systematic approach regarding such matters. In
most progressive countries of the world, the wage increase index is
linked to the rate of inflation,†Chizea (2010) advised. “The thinking
is that the government must be proactive in catering for the welfare of
workers. If salaries lag way behind increases in the rate of inflation,
then there will be erosion in the quality of life of the generality of
the workers. Therefore periodic wage increases is very much part of an
effective salary administration.â€
Chief executive officer, Global
Analysis Derivatives Limited, Tope Fasua, while acknowledging that wage
increase does not hold eternal emancipation for workers anywhere in the
world, noted that it is important for government to pay living wages.
“There is no way wage increases can lead to the eternal emancipation of
workers anywhere in the world. The effect will at best be a temporary
reprieve until prices catch up with the new wage levels,†Fasua (2011).
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ABSRACT - [ Total Page(s): 1 ]This research work investigates the impact of minimum wage fluctuation on growth of Nigeria economy. Determinants of labour market in Nigeria arising from the economic transformation in recent years, and how public policy affects in particular labour market outcomes. The result has shown that increase in minimum wage increase by l unit (1 million), increase real gross domestic product by 0.038million. Similarly, an increase composite consumer price index in by 1 unit (1 million) reduced RGDP by ... Continue reading---
