While the news about the new National Minimum Wage is still fresh in the memories of Nigerians, another aspect of the news is that Corp Members; NYSC will henceforth be beneficiaries of the new N30,000 wage increase.
This is a new development from the Nigerian government on Thursday which has come as an update on the implementation of the new National Minimum Wage.
Considering the implications cof the increase, the Minister of Finance Mrs Zainab Usman, said the financial implications had been worked out by the Presidential Committee with a report which had been submitted to the president.
Still on the issue of inflation, she gave more elaboration while addressing a news conference on the state of the Nigerian economy, on Thursday in Abuja. She said:
“We have looked at the report and what we are working on now is how we can finance it”, NAN quoted her as saying
“Apart from the increase of the minimum wage from N18, 000 to N30, 000, there is also consequential adjustment that we have to negotiate with the labour unions.
“The total implication of that would be worked out only after the negotiations and that would involve determining how much increase every other staff that is above the minimum wage would get.
“It could be a flat amount or a proportion, but the other aspect that is clear is that there would be an increase for the National Youth Service Corps (NYSC) as well because by the Act they should earn at least the minimum wage and the NYSC also has to increase to that N30, 000.
“So, because we have not done the negotiation with labour, I cannot give you the details of what we are projecting because it is simply on projections, at the end of the day, it is what we agree with labour that will be the amount that is due.”
Considering the discussion on the much talked about debt increase from N12.2 trillion to N23.0 trillion, Usman said it was by design.
Speaking further, she revealed that the Economic Recovery and Growth Plan (ERGP) is designed to reflate [sic]the economy and plunge the nation out of recession by borrowing in the first to third year and in the fourth year start reducing the borrowing.
On borrowing and the advantage it has on the Nigerian economy, she said, the borrowing was majorly to finance capital projects, which was why the nation was able to come out of recession.
She also talked about revenue increase, and she said, “The method we adopted helped us but the consequence is this increase in debt and that is why the Ministry of Finance and all its agencies are working to ensure that we increase revenue.
“At 19.0 per cent debt to Gross Domestic Product (GDP), we still are the lowest among our comparator countries.
“The problem we have is a revenue problem and that is why all we are doing is to make sure we enhance our revenue, if our revenue performs optimally, we are in a good place as far as debt is concerned.”
Source: Financial Watch