Victor EzejaAs the debate over what should be the appropriate minimum wage for Nigerian workers goes on, Chief Economist and Senior Partner at SPM Professionals, Dr Paul Alaje, has said anything below N50,000 “is too poor” given the current high inflation rate and low value of the naira in the foreign exchange market.
Alaje stated this in his “Labour Day Message” via his official X handle on Wednesday.
The Federal Government on Tuesday announced the approval for a pay rise of between 25 and 35 per cent for civil servants on six consolidated salary structures.
A statement signed by Head of Press, National Salaries, Incomes and Wages Commission (NSIWC), Emmanuel Njoku, said the increases took effect from January 1, 2024.
According to the statement, the affected Salary Structures included the Consolidated Public Service Salary Structure (CONPSS), Consolidated Research and Allied Institutions Salary Structure (CONRAISS), Consolidated Police Salary Structure (CONPOSS), Consolidated Para-military Salary Structure (CONPASS), Consolidated Intelligence Community Salary Structure (CONICCS), and Consolidated Armed Forces Salary Structure (CONAFSS).
READ ALSO: Why Minimum Wage May Not Be Less Than N100,000 – Analyst
The federal government also approved increases in pension of between 20 per cent and 28 per cent for pensioners on the Defined Benefits Scheme in respect to the six consolidated salary structures with effect from January 1,2024.
Reacting to that, Dr Alaje said the new wage increase which according to him, is around N41,000, is poor, insisting that every worker in the affected level (one to four is in “abject poverty.”
He wrote: “A minimum wage that is below N41,000 is abysmal. With a high inflation, weak exchange that may never return to N500/$1, An amount less than N50,000 is too poor.
“Usually, Nigeria maintains a minimum of $100 (naira equivalent). We can not be doing less than N100,000 right now.
“With this new increase, everyone at level one to four, is in abject poverty already.”
He called on President Tinubu to reconsider raising it further to enable the workers cope with current economic challenges.
Organised Labour Proposes N615,000 for ‘living wage’
On his part, president of the Nigeria Labour Congress (NLC), Joe Ajero, described the announcement of wage increase by the Federal Government as “mischievous.”
Ajero, who appeared on Channels Television’s Sunrise Daily on Wednesday said the last minimum wage of N30,000 expired on April 18 and that discussions for a new minimum wage regime supposed to have been concluded by now and implemented but the government ignored it.
READ ALSO: Minimum Wage: NLC Proposes Fresh N615,000 Monthly
He said: “I think the announcement now appears mischievous because there is no wage increase that government is announcing. For them to announce it now, it is an issue that we are worried about at the NLC and even at the TUC.
““The federal government through the national assembly legislated on it. But we saw that the discussion entered voice mail because the federal government refused to reconvene the meeting that was adjourned.”
Ajero further revealed that labor unions agreed on N615,000 as the living wage for civil servants, considering the current costs of things across the country.
“Living wage is such that will, at least keep you alive. It is not a wage that will make you poor and poorer. It is not a wage that will make you borrow to go to work. It is not a wage that will lead you to be in the hospital everyday because of malnutrition. For that living wage, we have tried to look at N615,000,” he added.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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