With a proposed minimum wage, especially above 100k per month, comes with its own baggage: hyperinflation! Considering the current inflationary issue the government is trying to reverse, how do we therefore:
a. Reduce inflation? Knowing that higher pay means more demand, outstripping the supply of goods and services, which equals higher prices.
b. The private sector, especially Medium and Small-Scale Businesses (SMEs), may also go under, as they would be forced to pay the proposed wage/ salary increases. This is particularly challenging considering the concurrent rise in the costs of goods, services, rents, and taxes.
The NLC, TUC, and other unions must adopt a comprehensive approach to this situation, considering all the evidence and exploring genuine pathways forward. This is a multifaceted issue that requires a holistic perspective.
By merely demanding a higher minimum wage without addressing the short/long-term risks and issues associated with such increments, we will only be kicking the can down the road and not solving the problems.
What every Nigerian needs (in my opinion) is how best we can reduce inflation, have disposable income, and how the government can continue to tackle security, enable capital infrastructural projects and establish education, health and social investments across all states of the federation.
