• Wage Increase’ll boost workers’ purchasing power, stimulate economy -–Economist • Life-span of current N30, 000 minimum wage ends this year • Minimum wage now $40 from $200 – Emmanuel • ‘Nigerian inflation one of worst within W’Africa, says Odah With galloping inflation, projected increment in tax payable by individuals and corporates, amid other biting…N30, 000 minimum wage ends this yearof worst within W’Africa, says...
The World Bank’s senior economist for Nigeria, Alex Sienaert, projects that debt service will take up 123.4 per cent of Nigeria’s revenue in 2023, adding that the expanding debt service-to-revenue ratio and the amount of Nigeria’s public debt, which will put more pressure on the local currency by 2023, are both causes for concern.
The Executive Secretary of the Organisation of Trade Union of West Africa , John Odah described inflation in Nigeria as ‘extraordinary’ within the West African sub-region. In the past when agitations were made for wage increase, there were arguments that some state governments may not have the wherewithal to subscribe to a new wage regime. The position is further strengthened by the fact that some state governments have to complied with the current N30, 000 minimum wage structure.
He insisted that a call for a new minimum wage at this time is not selfish or misplaced, especially in view of the five-year lifespan of the current N30,000 coming to an end this year. However, a few days later, Ngige claimed that the press misquoted him saying, “the increase talked about was the remunerations and emoluments of the affected workers, especially civil servants. In labour parlance, concerning payment for compensation for work done, remuneration or emoluments is made up of salary component and earned allowance component.”
Another major economic policy of government that would take effect later in the year is the petrol subsidy removal. Precisely on June 1, 2023, the subsidy on PMS will automatically be removed as reiterated by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed during the 2023 budget framework presentation in Abuja.
“The point to note, however, is that the leading candidates in the next month’s general elections have reiterated their desire to remove the subsidy on PMS. If this happens, the new leadership of the Nigeria Labour Congress will have to prepare to lead national response from day one it is sworn into office,” he said.