Nigeria Labour Crisis (Ohhhh, Congress?) Celebrates Nation’s Economic Agony as National Minimum Wage Act, 2024 Takes Effect.
I changed the text to Title Case by capitalizing the first letter of each major word, while keeping minor words like “as”, “of”, and “and” in lowercase. Let me know if you have any further requests!
I have observed for decades, the shenanigan of union leaders who claim to be representing workers. Most of them are cowards and hypocrites.
Till date most labour secretariats in Nigeria do not pay all of their staff minimum wage let alone the labour leaders pay all of their own staff minimum wage. Can you see the hypocrisy? And if they want to dispute it, let them publish the genuine lists and contacts of their staff and the salaries they pay those workers.
Let me quickly hint on the consequence of the visionless minimum wage as the prices of goods and services soar shortly across board .
Finance Act 2020 provides in Section 30 that Section 37 of the Act (i.e Personal Income Tax Act) is amended by inserting, after the word, “income a new “proviso”— “Provided that minimum tax under this section or as provided for under the Sixth Schedule to this Act shall not apply to a person in any year of assessment where such person earns the National Minimum Wage or less from any employment.”
Similarly, Section 31 of Finance Act 2020 states that National Minimum Wage” means the extant National Minimum Wage pursuant to the National Minimum Wage Act. I hope this is clear enough to all.
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Now that most small and medium-scale employers fall in category of whose majority of workers earn less than N70,000, from where would Pay As You Earn (PAYE) be deducted and remitted to States to augment federal allocation they receive? From where would the additional revenue be generated to pay the wage increment? Is the wage increment sustainable for existing workforce or downsizing has been planned along with it? Well, I sit and watch!!!
One thing that most people do not take note is that anytime significant wage increase occurs, it would have multiplier effect on the economy and within a year the additional income would just become nugatory except the bulk arrears which could be employed for one-time investment for future gain,. However, this is for those who earn significant arrears only.
Since 1994, Malaysian Ringgit has not risen above 5 Ringgit to 1 US Dollar while South Africa has maintained Rand to be not more than 25 Rand to 1 US Dollar. Instead of the confused labour leaders to fight for restoration of national economy with significant reduction of political office holders entitlements to not more than twice or twice and a half of what a permanent secretary at proximate tier of government receives, they prefer that workers should earn what would be valueless even before collecting same. Besides, every patriot has seen that the Current Central Bank Governor is a disaster to the Nation and instead of calling for his replacement with a patriot, they keep silent.
Well, who knows what might have been exchanging hands between the parties?
Has he not worsened the value of Naira to dollar times 2 of what Emefiele left? Is that a sign of a good administrator?
What of his boss whose passion for nepotism makes him appoint such a misfit for critical national institution?
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No problem o, I trust Nigerian labour leaders. They know their own jobs are secured and once the employers are no longer able to fulfil their financial obligations to workers, each worker is left to his peril. I have watched with keen interest to see any meaningful protest against the labour leaders who at any over-hyped minimum wage discourse forget that value of money matter most and not the quantity. Or they want to turn Nigeria to Robert Mugabe Zimbabwe where 1 Million Zimbabwe Dollar was not enough to purchase a sachet of water before he left office? How much were you buying goods and services before the much advertised minimum wage and how much are they tnow? We are here together, If they like, they should opt for N1million minimum wage next time, those who are destined to survive will definitely do.
Was it not when the last minimum wage was approved that Value Added Tax (VAT) increased to generate more revenue? Did that increase or reduce cost of goods? Whenever minimum wage increases, prices of fuel not increased? Once minimum wage increases, politicians do not increase their own pay? Can the workers’ pay be increased rapidly as politicians do theirs? Let me leave these questions as these for now.
Now that the Senate has passed National Minimum wage Act 2024 as the President assents is assured being the initiator of the bill, the State government as from August 2024 would suffer not only significant loss of revenue but be ready to face challenge in paying monthly salaries effective from October 2024 except other social amenities provision would stop. Apart from this, the unemployment market receives boost soon. Well, as Artificial Intelligence makes some workers redundant, Nigeria Labour crisis is now joining at sending many workers out of work? Only the wise and employers of labour understand this treatise.
Let me quickly face my job o. I remain your boy who doesn’t know anything
Luqman Soliu
Abeokuta, Nigeria.
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