Given our available natural and human resources, the demand by labour for a higher monthly minimum wage of possibly N30, 000.00 should not be questioned. I think that they have been very considerate, they deserve it and it should be paid! Under normal circumstances, minimum wage increase should not be characterized by the kind of bickering going on between the government and labour unions. It should be dictated by an agreed framework that will smoothly and periodically trigger when certain socio-economic variables change. But alas, this is Nigeria! As we always like to compare ourselves to other developed and developing countries, using the ongoing exchange rate, N30, 000 is about $83.00. While the monthly minimum wage in South Africa is $277.00 (N100,000), it is $287.00 (N103,320) in Brazil, $382 (N137, 520) in Shanghai China, $260.00 (N93,600) in Jakarta Indonesia, $141.3 (N50,868) in Mexico, $513 (N184,680) in Turkey, $176 (N63,360) in Russia, $1,160 (N417,600) in USA and $1,606 (N578,160) in United Kingdom. If all these countries that we like comparing ourselves with are paying higher monthly minimum wage than us, we should ask why our government is unwilling to pay a higher minimum wage that can be described as a pitiable wage (N30, 000 in a month)! Another interesting question is why all the countries paying a higher minimum wage are more developed and growing than Nigeria? The answer to the questions above cannot be disassociated from the absence of effective and visionary leadership, innovative thinking, planning and execution.
A more worrisome situation is our governors who even with the huge monthly allocations they get from FAAC have been unable to properly exploit the resources of their respective states to achieve visible development including the payment of minimal wage to their employees. As I listened to them last week when they maintained their inability to pay the N30, 000.00 demanded by labour, I took further pity on Nigeria and deeply wondered if our Excellencies really understand their jobs and responsibilities. I think that they need to appreciate that they are elected as CEOs of their respective states and that CEOs are expected to use the initial capital of a firm to grow the firm to sustainable profitability and expansion. Under normal circumstances, a CEO who is unable to grow and develop a firm, unable to pay his employees a decent wage or pay dividends to his shareholders year after year should be sacked. If it is a publicly listed firm, the shareholders will sell their shares to trigger a hostile takeover if the CEO refuses to step down.
Lamentably, we have a worse situation in our states. We have CEOs who even with abundant human and natural resources littering our states in addition to monthly federal allocations of billions of Naira are unable to visibly grow and develop our states or even pay basic salaries. Our CEOs lack vision, strategy and commitment to develop their states but are busy pilling up debts and squandering both their internal generated revenues and the huge monthly allocations from FAAC. Imagine a governor who on resumption of office buys 48 brand new Prado jeeps to share to his commissioners and members of the state’s House of Assembly whose majority could not afford a 2002 Toyota Camry before their appointments and elections! Expectedly, such wasteful governor will not be able to pay N30, 000 monthly minimum wage.
As we have such CEOs as our governors, the question we need to ask is; what we can do as shareholders of the firms (states) to change the sad situation? Given the time we are in, I think that the current demand for a wage increase by labour is a kind of serendipity. As shareholders of our states, the 2019 election presents us with an excellent opportunity to elect the appropriate kind of CEOs who will understand the job requirements and expectations. This is the time for labour unions to demand a written commitment from the key governorship candidates on their willingness and commitment to pay the demanded new minimum wage. However it should not stop at just signing a commitment. The signing should be accompanied with a detailed achievable and measurable plan. Those that pass this test should be voted in. Incumbents seeking a re-election that did not pay the old wages as at when due should be voted out to teach incoming ones a good lesson. Governance is serious business and should be left for serious minded people. It is a job that its actions and inactions determine the existence of present and future generations.
With the resources littering our states in addition to the monthly allocations from FAAC, our states should be able to pay a monthly minimum wage of N50, 000.00 if governed by effective and visionary leaders. All that is required is for each state to properly focus on two to three key revenue generating projects. For instance, while Enugu state remain unserious with Adani rice project, Kebbi state earned N150 billion from local Kebbi rice in 2017. Not only is Kebbi the highest producer of rice in the country, they are also the highest producer of onion and pepper. Interestingly, the pepper from Enugu state (Ose Nsukka) lamentably neglected can be argued to have the best flavor in Nigeria. The Enugu/Kebbi comparison is a good example of what committed and visionary leadership can do. It will also be recalled that when other states were struggling to pay salaries with many unable to pay, Anambra state increased the workers’ salary by 15% in 2015 with a promise for a further increase this year. Where there is committed and visionary leadership, a monthly minimum wage of N30, 000 and higher is achievable! Let us elect such leaders in 2019!
Franklin Nnaemeka Ngwu (PhD)
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