Today, Nigerians who are lucky to have jobs are finding it increasingly difficult, if not impossible, to survive on their monthly pay. The major reason for this is that the pay of the Nigerian worker is not only one of the lowest in the world; it has also not improved as it should in the face of changes in market conditions. Workers in the public sector are particularly worse off. In Nigeria the difference in pay between managers and workers is not only one of the highest in the world: out of every N1 paid as wages, managers collect more than 80 kobo while workers receive less than 20 kobo; the difference has been increasing over the years. At the same time, owners and managers of banks, top government officials and members of the political class have seen their pay and wealth swell astronomically while workers have had to survive on starvation wages. Workers can no longer survive on what they earn; the situation is made worse by the fact that those who work also have to support family members who form part of the huge army of the unemployed. It has become crystal clear that there is an urgent need for an upward review of the national minimum wage and an upward general review of wages and salaries.
The current minimum wage in Nigeria is N7500 ($50) per month but the Labour Union are demanding an increase to N52,000 ($345) per month. On 1st May 2010 organised labour, private employers and the Federal Government agreed on a new national minimum wage of N18,000 ($120)per month. This figure was dismissed with angry and disapproving shouts of No! by workers. It seems the problem is a never-ending one… if the government agrees to such an increase, companies have threatened to downsize, which means higher unemployment rates. What I do not understand is if the average senator in Nigeria takes home around N10million ($65,000) per month but his drivers wage is not enough to take him out of the office gate, let alone home- can we not see the problem stems from greed and lack of infrastructure?
It is well-known if not common sense that the minimum wage of N7,500 is far below the minimum cost of providing basic needs for the worker and their immediate family. Even in the most dire of situations where a family of 6 are forced to live in one room and endure an elementary diet and lifestyle, the average amount required for survival is about N60,000 per month. Did you know that N18,000 is allegedly spent on the feeding of one prison inmate monthly? While the estimate here is merely N20,000 for the feeding of a family of 6 per month. How sad!
You may ask yourself, is the minimum wage of N52,000 proposed by the Labour Congress sufficient? I believe it is a reasonable and affordable start to increase the morale and productivity of workers and Nigerian labourers will be greatly enhanced by the wage review. Besides, let’s be honest Nigeria earns enough revenues, even with the downward slide in oil prices, to be able to pay this wage. The problem in Nigeria is massive corruption by members of the political and administrative elite and not lack of resources. The main question here is not if we can we afford to pay the new wage, it is if those members of the political class can cut their level of stealing public funds, so it is re-distributed to those more deserving in the economy. Finally if the economy can accommodate the huge sums spent on political office holders, it can accommodate a general upward review of wages as proposed. In any case, more resources should be devoted to the productive workers in any economy. Apart from political office holders, the profits declared in most areas of the private sector (telecommunications for example), continue to be massive. Therefore, the public and private sectors of the economy are capable of paying higher wages.
I feel that the main issue of national wage is directly correlated with the fact that Nigerians have become experts in distributing wealth; we have taken the God-given gift of oil and abused its wealth. However, we are primitive when it comes to creating wealth. How long do those in power expect the oil to last for? One day it will end and then what will Nigeria be known for? What will the oil dependent business men or government depend on? Take Dubai for example, they too are an oil producing nation, but they realise it does not last forever, especially at the current rate of global consumption. Now, Dubai makes more money from tourism than crude oil. They were able to create more jobs and attract millions of people to an otherwise deserted country: That is what I call good leadership. In Nigeria where corruption occurs in the corridors of the power houses- where lies the hope for the masses? For the standard of living to improve we must generate wealth and not just rely on oil which the majority will never reap the fruits of labour. The longer we delay to admit this and fight for change the harsher the living conditions of workers in Nigeria will be in the face of the alarming mass poverty already destroying their lives.
(This article was Published in PM Newspaper. Wed 5th May 2010, pg 5. By Fade Ogunro)
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