Is minimum wage really the problem?

in HiveGhana5 months ago

In recent times, what has been on the lips of every adult in my country, Nigeria is the minimum wage increment.

Image is mine

In Fact, just last week here there was a nationwide strike orchestrated by the Labor Union, just to arm twist the Federal government of Nigeria to come to agreement and increase the minimum wage from 30,000 Naira monthly to about 400,000 Naira monthly.

When I saw that news, I just laughed, in an economy that is not productive? I even laughed more because some Nigerians are supporting it and are even excited that finally they can afford a bag of rice, lol…. Before now, a bag of rice sold for as low as 10,000 Naira. Today it is selling for 89,000 Naira minimum. Last month I bought beans a custard rubber for 4000Naira, three weeks later, I am getting that same custard rubber for 7000 Naira.

The thing is, as long as we continue to see minimum wage as the problem, we shall continue to cry hot tears.

You know when I discuss the minimum wage with my fellow countrymen and women, one question I ask them is “What took our inflation rate from 28.9% to 33.95%?” They will say it's subsidy removal, then what prompted that subsidy removal? They will say it's the corrupt practices of the elites to be diverting the petrol subsidy for selfish reasons, but then that is only half of it.

It should be worthy to note that the Nigerian Government borrows heavily to finance their annual budget, then there's corruption and misappropriation of funds not to mention mismanagement, with almost zero accountability.

The unanswered questions will remain, will the government borrow to pay workers? Where will they get the money for minimum wage increment from? Because If the government is increasing the minimum wage, I'm pretty sure they will look for another Economic policy to collect the money back.

Just like they increased the minimum wage to 30,000 Naira.

Next, they announced a total removal of the fuel subsidy, which brought us to where we are today because the government basically does not give to the people, they take especially our African leaders.

Now the question of, is the minimum wage in my country realistic or not? And What do I think will remedy the situation?

Personally, I do not look at the quantity of money but the quality and the quality lies in value.

Fact is, no matter how they want to increase our minimum wage rate with the current economic situation, that increment is useless as it's without value.

Now with the Nigerian problem, the best solution to our predicament is not minimum wage increment but Economic stability.

Let's say our refinery is functioning, and we no longer export crude oil to import its finished product. There will be job creation and a crash in the cost of petroleum products, which will in turn curb down on the inflation we are currently experiencing.

Let's say we have steady power supply and no longer have to go weeks and months without electricity. There will be low cost of production, couple with the functioning refineries, life will be good.

Let's say we have a productive workforce and trimmed civil service, we don't have to deal with ghost workers and government officials earning at least Twenty five million Naira monthly, we won't have to deal with budget deficit.

If we can also diversify to be an export induced economy rather than rely majorly on import, plus we have security assured, we will have our economy running at Optimal speed.


What is the minimum wage in your country currently?, Do you think it's enough or realistic for the common person? If you could change something about this situation in your country, what would you do?

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In my country (Ireland) minimal monthly wage is 1800€.. As I'm originally from Croatia there is 530€ a month. So we moved to Ireland because life wasn't possible. 30.000 of your money is almost 19€. So I don't understand how government can be so selfish. I wish people around Africa wake up and help because this is insane to read. I don't know how would I live there. ☹️.

My opinion for one person minimal wage to live good life is 1800€

The dilemma we've found ourselves in in Africa especially Nigeria is that, any increase in minimum wage will lead to spiral inflation.

The value of money remains the same or even worse despite it increasing in amount.

Surviving in Africa is a miracle I tell you.

And worse thing that people are stuck there 😣

We are, because even relocating to the western world is not cheap. It's about $20,000 minimum which is like Thirty million Naira here, not small money at all.

Most times, people collect loans and when they get there, some find it difficult to pay back, because they need to start up their life there too.

So many things are wrong, unfortunately the minimum wage increase cannot bring any solution if those wrongs are not addressed.

The Government is not interested in getting these things sorted, and the people are concerned about their daily survival. That's why we are where we are.

#dreemerforlife

The government is more concerned about their pockets at the detriment of the masses and that's the sad part.

I understand them. The thing is that, they can barely do something about all these prices, so then they should at least find a way to increase the amount of money someone earns to match with the cost of living currently

The economy has to be stable first before any minimum wage increment can have a positive effect for the masses.

Otherwise, asking employers to increase their workers salary when they are struggling to break even will only increase the cost of production.

Similarly, it will lead to more government borrowing which causes the country's interest rates on loans to increase and you know loans are avenues for big shots to do business.

In these scenarios it is the final consumer that bears the brunt. So whatever they are increasing the minimum wage to, inflation will still gulp it.

I used the Nigerian economy to analyse this because it's basically our reality.

The minimum wage isn't the major problem we have in Nigeria, some areas need attention and the minimum wage isn't part of it, Imagine the minimum wage is increased to the proposed amount by the labor union then inflation increases again, and that minimum wage can't sort the bills any longer what will happen in a situation like that.

The major problems right now in Nigeria are the cost of living, inflation, and fuel. Before now people were surviving on thirty thousand naira to sustain themselves for weeks, so if the prices of items at the market drop and fuel drops to it's lowest, I believe people can be able to live up again, then the minimum wage issue can be brought up.

Whatever money they want to use and finance minimum wage increment, let them use it and subsidize petroleum products. You'd see how easy life becomes.

Yeah so this minimum wage fight is unnecessary

Very unnecessary

omg I cant believe that it is so bad situation.

It is, almost unbearable even.

Thank you for your show of love ♥️

I hope something will change. I really do 🙁

Hopefully 🤞🏾

The Union is fighting for the minimum wage increment because it is an easy way out, but if the government approves any form of increment now, in the next few months to come things can get worse if the inflation is not put under control.

Our economic situation is scary, it is well shall.

#dreemerforlife

It is that minimum wage increment gon gon that will cause the inflation.

First of all, I disagree with the assertion that the labor unions are arm-twisting the government. We, the citizens, and, by implication, the labor force, are not the ones in charge of economic policies. The government is in charge of the policies. In that case, should the citizens continue to suffer for the wrong policies of the government?

Production brings about economic stability. Presently, multinational companies are leaving the country because of the bad and inconsistent policies of the government. Why should the workers suffer for this?

In the face of the economic downturn, the government is spending billions of naira to renovate the Vice President's residence. More than 90 billion Naira was spent to subsidize the fee for the Hajj pilgrims. Politicians are living in opulence, exhibiting insensitivity to the plights of the populace. Should the workers bear the brunt of all this?

If the political leaders are not ready to sacrifice in one way or another, then it is out of place to expect labor to sacrifice.

For now, what the labor union is asking for is a living wage. Nigerian workers are among the least remunerated in Africa. The leaders share the money meant for the country, while others suffer.

Government policies are responsible for the ease of doing business. Government policies can encourage production or otherwise. It is obvious that the present government is not getting it right.

Must workers be begging to eat? The whole blame is on the government. Nigerian workers deserve a living wage. Nigerian workers are not the ones preventing our economy from improving productively. The government is to be blamed.

Labor unions are right in demanding a living wage.

#dreemerforlife

When the inflation becomes spiral due to the wage increment, you will understand this write up better. You will have money but it will be useless just like the case of Zimbabwe.

If the labour union is really sincere in their fight for the masses, it will not be minimum wage increment but at least 70% implementation of petrol subsidy.

That is the quickest way to cushioning the harsh economic situation not minimum wage increment because that is like pouring petrol in fire.

When the inflation becomes spiral due to the wage increment, you will understand this write up better. You will have money but it will be useless just like the case of Zimbabwe.

Minimum wage increments happen everywhere. Is the minimum wage in the US 10 years ago the same as now? A responsible government doesn't give workers ridiculous wage that keeps them in poverty.

Labour kicked against the removal of subsidy during Buhari's regime but he removed it. The government insisted that it's removal is the best way to go. If the removal is now leading to an ugly result, let's give the blame to people that deserve it, the government. Labour isn't in charge of policy making.

The number one reason why policy fails is comparing an underdeveloped nation to a developed one.

The effect a policy will have in the US can never be the same in Nigeria.

Whatever works for the Western world, will always have an economic downturn here. A nation that means well makes policy according to their Economic conditions.

If China was looking at the Western world for population control, I bet they'd still be struggling with the concept of missing women.

Labour is not in charge of policy making but it is their duty to see to an improved standard of living for employees and MINIMUM WAGE INCREMENT WILL WORSEN EMPLOYEE CONDITION!

Minimum wage was 18k they complained it's too small, it got to 30k they are still complaining and moving for increment... between when it was 18k and now that it is 30k which was better for employees??

No need to talk too much sha, na the Nigeria we dey... I'd be here when my predictions play out.

Nkem does not know much about political debate...me I just watch things unfold and pray for naija
I am tired of una government abeg
Lol

😂🤣😂🤣 shey you have an opportunity to JAPA Mauritius and smuggle me in your bag you refused? 😂

😌😌😌😌

We need you to be our spokesman with these listed facts oo. Omo, I am sure we go win 😂

Last month I bought beans a custard rubber for 4000Naira, three weeks later, I am getting that same custard rubber for 7000 Naira.

So, you love beans? A rubber of beans for 3 weeks. Hehehe

Yes, the only solution is to make the economy stable and allow everyone enjoy life instead of being under pressure every time.
#dreemerforlife

😂🤣😂 Una won turn me to parrot 😂....

I love beans die, especially when rice became expensive it became our staples at home. Now person nor know which one e go do again.

🤣🤣🤣 my beans that spoils in the end. This is why I buy half a rubber, like 5 cups inside. The one I bought 3 weeks ago is still there 😂

Is like you will waybill it and bring for me since you nor need am 🌚

👏👏👏👏👏👏👏👏👏👏

Well said!!! Very sensible and rational arguments here! I hope that in time Nigeria will move forward positively with good leadership. @bipolar95 for President, I think! hehe.

#dreemerforlife

I'll be honoured 😂...

Thank you for stopping by 😘

Even my favourite food is very costly. My dear beans. 🥲

Omo, you just opened my eyes to these facts. I'm learning and like every other person in Nigeria, we're hoping to come out of this. It's so discouraging.

#dreemerforlife

Beans is now 8k a rubber oh... God help us 😭😭😭😭

When I started the post, I was so eager to disagree with you but now, I get your point. Honestly, there is no amount the government want to be paying workers that will be enough. The country is in a really bad state! There is so many things that is wrong and we Nigerians are so used to suffering and smiling. The cost of living has become so high and what we truly is a stable, productive and working country. A change needs to happen, and it has to be soon because it is getting out of hand.

#dreemerforlife

Omo!!!!!! It is well o. Carried 25k to the market to make soup and stew for the week... What it got me? Na God go help us make e reach weekend.

Damn, that is really crazy, I don't even know how we are all surviving in this country🥺

By the special grace of God dear.

Haha... I too was surprised about the sudden rise of custard rubber for beans that skyrocket to 8,500 in my location😅 i just quite and jejely brought half paint instead.

Just as you said, what we need is economic stability but for how long are we going to wait until it comes?

#dreemerforlife

The beans 8k haf reach this side o 😭. How we go do?

The thing with Nigeria is that you can only take advantage of the loop holes and make it work for you because government na long run matter.

I'm telling you😪
It's a take and take something in these current nigeria, so sad💔