By: Adeolu Odebode
IGIVEN the substantial gap between the Federal Government’s offer of ₦62,000 and organised labour’s revised demand of ₦250,000 for the new national minimum wage, several reasonable alternatives could help to bridge this divide. One approach is to set a wage range between ₦80,000 and ₦120,000, which, while significantly higher than the government’s proposal, remains considerably lower than labour’s demand, aiming to balance sustainability with workers’ needs. Another solution might involve an incremental approach, starting with an immediate adjustment to ₦80,000 – ₦100,000, and gradually increasing to ₦150,000 – ₦200,000 over the next 3 to 5 years, allowing for economic adaptation.
Additionally, implementing Cost-of-Living Adjustments (COLA), starting at ₦80,000 and reviewed annually, would ensure that the minimum wage keeps pace with inflation and economic changes. Sector-specific adjustments could recognize the varying capabilities across different industries, beginning with a general minimum wage of ₦80,000 – ₦100,000 and higher rates for more profitable sectors.
I would also recommend introducing regional variations, with higher wages for urban states at ₦120,000 and lower economic States at ₦80,000, reflecting the diverse cost of living across the country.
Whilst considering these options, I would recommend that the government should consider developing a longterm framework where Labour would be paid per hour and not monthly salary. This will ensure maximum productivity and grow the economy.
As a policy, governments at all levels should enforce regulatory measures to curb excessive price mark-ups and enforcing anti-hoarding laws, so as to prevent artificial inflation of essential goods prices. This will help reduce the high cost of living across the country.
- Oyebode, a security expert and public affairs commentator, writes in from Ekiti State.
Read Also: Senate promises speedy passage of extension revitalisation bill
