Experts Seek Broader Reforms For Better Welfare

Two public policy experts have urged the Federal Government to adopt broader economic reforms beyond periodic increases in the national minimum wage, warning that salary reviews alone cannot improve the living conditions of most Nigerians.

In a policy paper titled, “Beyond Minimum Wage Increases: Towards A Better Strategy For Improving the Welfare of Nigerians,” Prof Gesiye Salo Angaye and Dr Preye Angaye argued that while the minimum wage remains an important social protection measure, it is not enough to address poverty, unemployment and the rising cost of living.

The experts said the recent review of the minimum wage from N30,000 to N70,000 has been largely eroded by inflation and rising prices of essential goods and services.

If government really wants to improve Nigerians’ lives, it needs to look far beyond the pay cheques of public servants,” they noted.

According to them, although President Bola Tinubu signed the new minimum wage into law in July 2024, many Nigerians are yet to feel its impact due to inflation triggered by fuel subsidy removal and the floating of the naira.

The paper stated that food inflation and rising transport costs have significantly reduced the purchasing power of workers.

The authors explained that increasing wages without corresponding improvements in productivity often leads to higher prices.

“A pay rise that isn’t matched by more goods and services on the shelves rarely stays a pay rise for long. It becomes a price rise instead,” they said.

The experts further argued that the current minimum wage policy benefits only a small proportion of Nigerians because the vast majority work in the informal sector.

Citing data from the National Bureau of Statistics (NBS), they said about 93 per cent of employed Nigerians are market traders, artisans, commercial transport operators, farmers and small business owners who are not covered by the minimum wage law.

According to them, while these Nigerians do not benefit directly from salary increases, they still suffer the consequences of higher prices that often follow wage adjustments.

They also expressed concern over the financial capacity of many states to implement the new wage, noting that internally generated revenue differs significantly across the country.

The paper observed that while economically stronger states may cope with higher wage bills, poorer states often struggle to pay salaries, leading to delayed implementation and industrial disputes.

The Angayes therefore called for a more flexible wage framework that takes into account the financial realities of individual states while protecting workers’ rights.

Beyond wage increases, they urged governments at all levels to prioritise investments in education, healthcare, agriculture, infrastructure, digital technology and support for small and medium-scale enterprises.

They also advocated stronger fiscal discipline, improved tax administration, expansion of health insurance coverage and greater investment in skills development to improve productivity and create sustainable jobs.

According to them, government performance should no longer be measured mainly by salary increases but by improvements in the quality of life of citizens.

The experts further called for a new social contract between government and citizens anchored on productive employment, efficient public institutions and better public services.

They concluded that “higher wages will emerge naturally from a stronger and more productive economy rather than from repeated emergency responses to inflation,” adding that such an approach offers Nigeria the best path to inclusive and sustainable national development.