The Nigerian Governor seems determined to ensure that workers become even less wealthy.
By: Abayomi ODUNOWO.
As the debate over the proposed minimum wage increase to N62,000, by the FGN continues to intensify, the question of sustainability has emerged as a central point of contention for many state governors. These leaders argue that such a significant increase in the minimum wage would place an unsustainable burden on their state budgets, potentially leading to economic instability and job losses. But on what basis are these governors making these claims, and have they conducted any scientific calculations to support their assertions?
To begin with, it is important to understand the context in which this debate is taking place. The current federal minimum wage in the Nigeria stands at N30,000 per month, a figure that has remained unchanged since 2014. In recent years, there has been growing momentum for an increase in the minimum wage to address the challenges of living wages, income inequality and poverty. Advocates for the increase argue that raising the minimum wage to N62,000 would provide workers with a livable wage and stimulate economic growth by putting more money into the hands of consumers.
However, state governors have expressed concerns about the potential impact of such a significant increase on their state budgets. They argue that the costs associated with raising the minimum wage to N60,000 would far exceed the revenue generated by increased economic activity, leading to budget shortfalls and potentially necessitating cuts to essential services. While these concerns are valid, it is crucial to examine the evidence and scientific calculations behind their claims.
It is worth noting that the N60,000 minimum wage proposal has not yet been implemented, so governors may be relying on theoretical projections rather than concrete data. In the absence of actual estimates, it is challenging to predict the precise impact of such a significant increase on state budgets. Without conducting thorough scientific calculations, governors may be making assumptions based on conjecture rather than hard evidence.
One would expect that governors would consult with their state commissioners of finance to conduct rigorous analyses to determine the potential impact of the N60,000 minimum wage proposal on their budgets. These calculations would take into account factors such as increased payroll costs, changes in tax revenue, and potential job losses. By basing their claims on scientific data, governors would be better equipped to make informed decisions about the feasibility of the proposed minimum wage increase.
However, it appears that many governors have not yet requested such scientific information from their financial advisors. Without these calculations, it is difficult to ascertain the true sustainability of the N60,000 minimum wage proposal. While concerns about budget constraints are legitimate, it is essential for governors to base their arguments on solid evidence rather than speculation.
Furthermore, the failure of governors to prioritize the improved living wages of their constituents raises questions about their commitment to addressing living wages, income inequality and poverty. A key responsibility of state leaders is to ensure the well-being of their citizens, including providing access to a livable wage. By neglecting to conduct scientific calculations on the potential impact of the N60,000 minimum wage proposal, governors may be failing in their duty to prioritize the needs of their constituents.
The basis on which governors are claiming that the N60,000 minimum wage is not sustainable remains unclear. Without scientific calculations to support their assertions, these leaders are relying on assumptions rather than evidence. It is imperative for governors to consult with their financial advisors and conduct rigorous analyses to determine the true feasibility of the proposed minimum wage increase. Only through evidence-based decision-making can governors ensure that policies are sustainable and beneficial for all citizens.
Otunba Abdulfalil Abayomi Odunowo
National Chairman AATSG
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