By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Independent News ExpressIndependent News Express
  • Home
  • International
    InternationalShow More
    G7 finance leaders seek non-tariff consensus in Canada, may face US pushback
    Ahead G7 Summit, Finance Ministers Seek Non-tariff Consensus In Canada, May Face US Pushback
    1 week ago
    Over 28,000 Women And Girls Killed In Gaza Since October 2023
    2 weeks ago
    Global Aid Cut
    New Report Reveals How Global Aid Cuts Affecting Women’s Organisations Aiding Women In Crises
    3 weeks ago
    UNICEF Raises Alarm Over 14m Children Worldwide At Risk Of Malnutrition
    2 months ago
    United Nations for Women
    In 8 Days, 830 Killed In Gaza – UN Women Raises Alarm
    2 months ago
  • Africa
    Africa
    Show More
    Top News
    Africa Leaders Summit: US To Strengthening Partnerships To Meet Shared Priorities
    2 years ago
    President Ruto Rallies Kenyans To Move Nation Forward
    2 years ago
    Tanzania: United Nations Steps Up Efforts To Build Climate Resilience
    2 years ago
    Latest News
    ECOWAS Marathon Race Director Okon Congratulates Commission on 50th Anniversary
    3 days ago
    Africa Day: Majority of Africans Want African Nations Be Given Greater Influence In International Decision-making Bodies
    5 days ago
    Edelman Africa Launches Regional Advisory To Support Global Institution Growth In Africa
    2 weeks ago
    African Union Champions Artificial Intelligence for Africa’s Socioeconomic Transformation
    2 months ago
  • Corporate News
    • Media Outreach
  • Politics
    Politics
    Show More
    Top News
    Nobody Can Hijack Our Mandate, Vows Osun Gov, Adeleke
    2 years ago
    PDP To Osun People: Oyetola Is A ‘Political Leprosy’, Run For Cover
    2 years ago
    UI Alumni Association Hails Okowa’s Giant Strides In Delta State
    2 years ago
    Latest News
    LG Election: Stakeholders Appeal To APC Not To Allow Chairmen Run For 3rd term
    4 weeks ago
    More APC Chairmanship Aspirants Reject Indirect Primary For Local Govt Elections In Lagos State
    4 weeks ago
    Youth Party Sets May 18 for Lagos LG Primary Elections, Slashes Fees For Women and PWDs
    1 month ago
    Oyo State Faces Herculean Task in Picking Makinde’s Successor – Chief Ayorinde
    2 months ago
  • News
    • Agriculture
    • Breaking News
    • Tech
    • Maritime
    • Crime
    • Art & Culture
    News
    Show More
    Top News
    Ondo Governor, Akeredolu Begins Construction Of First Flyover In Akure
    2 years ago
    Celebration Of Life: Reverend Adewumi Jegede Of Later House Of God Assembly Buried Amid Pomp
    12 months ago
    Pa Abdulfatah Amoo Ayanwale
    Pa Ayanwale Dies At 76, Fidau Prayers Holds 8 August
    2 years ago
    Latest News
    IMSUAA 2025 Convention: Two Artistes From Lagos Chapter To Light Up Event
    5 days ago
    Lagos SWAN Celebrates Yeni Kuti On Her Special Day
    6 days ago
    Ado Ekiti Honours One of Its Own: A Tribute To Chief Tajudeen Oluyole Olusi
    7 days ago
    Owo Security Summit Holds 26 May
    1 week ago
  • Entertainment
    • Comedy
    • Movies
    • Music
    • Television
    • Concert & Events
    Entertainment
    Show More
    Top News
    GOtv
    Yuletide: GOtv Improves Signal Quality In Abuja, Rivers State
    2 years ago
    It’s Easter Holidays with Top Entertaining Programs Showing from this Week on GOtv
    2 years ago
    Hi-Life Fest: Show Progresses With Six Contestants, Features Frederick Leonard As Guest Judge
    2 years ago
    Latest News
    Nigerian Idol Season 10 Live Shows Are Underway as the Top 10 Battle for Stardom
    4 days ago
    Nigeria Strengthens Fight Against Content Piracy Through Strategic Partnerships
    1 week ago
    Prestige, Impact: Why AMVCA is the People’s Award Show
    3 weeks ago
    Celebrating African Cinema: AMVCA’s Growing Influence in Global Entertainment
    1 month ago
  • Lifestyle
    • Fashion
    • Love & Life
    • Food & Drink
    • Travel & Tourism
    • Relationship
    • Sex
    Lifestyle
    Show More
    Top News
    NCC, NICO To Leverage Telecom Channels To Promote Nigerian Cultural Heritage
    12 months ago
    Believe In Healing Power Of Blood Of Jesus – Bishop Tells Congregants
    2 years ago
    Lagos Seeks Strategic Partnership To Drive Tourism
    3 months ago
    Latest News
    Lagos SWAN Joins UN To Celebrate World Nutrition Month At Unilag Confab
    4 days ago
    Yemisi Shyllon Museum of Art and Toledo Museum of Art Launch Historic Cultural Exchange
    3 weeks ago
    Piracy in Africa’s Creative Sector: How Creators Can Protect Their Content
    1 month ago
    Fanti Carnival Returns To Lagos This Easter Sunday
    1 month ago
  • Business
    • Banking & Finance
    • Oil & Gas
    BusinessShow More
    Lagos Will Continue To Lead Initiatives That Accelerate Economic Diversification – Sanwo-Olu
    1 week ago
    Afreximbank
    Afreximbank Reports Strong Performance For Q1 2025 In Line With expectations
    1 week ago
    Pan-African Payment & Settlement System
    Nigeria Unlocks Intra-African Trade With New Pan-African Payment & Settlement System Policy Boost
    3 weeks ago
    Impact Of Online Trading Platforms Like Temu On Nigeria’s Economy
    3 weeks ago
    Unity Bank Launches GenFi, Targets Children, Teens With Gamified Banking Platform
    4 weeks ago
  • Health
    Health
    Show More
    Top News
    South Africa’s Cannabis Growers In Pondoland Left Behind By Legalisation Plans
    3 years ago
    WHO Expands Health Services Support For Vulnerable Populations In Nigeria’s Northeast
    2 years ago
    trachoma
    WHO Commends Benin, Mali For Eliminating Trachoma As Public Health Problem
    2 years ago
    Latest News
    Alimosho Football Coaches Council Set For Health, Safety Business Workshop
    1 week ago
    World Hypertension Day: Merck Foundation Commits To Improving Cardiovascular And Diabetes Care Across Africa
    2 weeks ago
    First Lady Gives Paediatric Support To Indigent Patients At Lagos General Hospital
    2 weeks ago
    Salt Awareness Week: CAPPA Urges Fed Nigerian Govt To Accelerate Salt Reduction Targets Regulation
    3 weeks ago
  • More
    • Sports
    • Aviation/Transportation
    • Deliverance Hour
    • Industry & Labour
    • Insurance
    • Interview
    • Judiciary
    • Metro
    • Opinion
    • Property
    • Religious
    • Romance
    • Science & Discovery
Reading: Re: Fuel Subsidy Removal, Proposal To Review Minimum Wage And NLC Threat To Embark On Strike By Chiwuike Uba
Share
Notification Show More
Aa
Independent News ExpressIndependent News Express
Aa
  • Home
  • International
  • Africa
  • Corporate News
  • Politics
  • News
  • Entertainment
  • Lifestyle
  • Business
  • Health
  • More
Search
  • Home
  • International
  • Africa
  • Corporate News
    • Media Outreach
  • Politics
  • News
    • Agriculture
    • Breaking News
    • Tech
    • Maritime
    • Crime
    • Art & Culture
  • Entertainment
    • Comedy
    • Movies
    • Music
    • Television
    • Concert & Events
  • Lifestyle
    • Fashion
    • Love & Life
    • Food & Drink
    • Travel & Tourism
    • Relationship
    • Sex
  • Business
    • Banking & Finance
    • Oil & Gas
  • Health
  • More
    • Sports
    • Aviation/Transportation
    • Deliverance Hour
    • Industry & Labour
    • Insurance
    • Interview
    • Judiciary
    • Metro
    • Opinion
    • Property
    • Religious
    • Romance
    • Science & Discovery
Have an existing account? Sign In
Follow US
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Independent News Express > Blog > Opinion > Re: Fuel Subsidy Removal, Proposal To Review Minimum Wage And NLC Threat To Embark On Strike By Chiwuike Uba
Opinion

Re: Fuel Subsidy Removal, Proposal To Review Minimum Wage And NLC Threat To Embark On Strike By Chiwuike Uba

Last updated: 2023/06/04 at 5:36 PM
2 years ago
Share
SHARE

The debate on the removal of fuel subsidies should go beyond rhetoric on the pages of newspapers and WhatsApp groups. Personally, I’m concerned about the salary review that the President has allegedly proposed as part of the palliatives to the fuel subsidy removal. To be honest, this will only worsen Nigeria’s current precarious fiscal situation. Any wage increase will swallow up any “savings” that may result from the removal of subsidies and even lead to higher inflation and it’s attendant socioeconomic consequences.

This is compounded by the fact that over 70% of our annual budget is spent on recurring costs, including personnel and overhead costs. Consequently, 70% of Nigeria’s total budget goes to less than 5% of the country’s population, which are employed by the government. In addition, over 60% of capital expenditures are wasted through inefficiency and corruption by the same less than 5% of the population. The implication of this is that over 88% of Nigeria’s annual budget is spent (squandered) by 5% of the total population (including political appointees).

Moreover, labour productivity is virtually nil, with an average of 1.14%, compared to Egypt’s average of 5.85%, 4.74% in South Africa and 4.15% in Ghana. While it is acceptable for Nigerians to be hard working people, it is important to determine the extent to which the work is productive. Every effort placed in an activity that does not produce anything is futile. It is on this background that many have questioned the productivity of Nigeria’s working population. Over the years, Nigeria has failed to adequately compensate for the large number of workers when viewed in terms of labour productivity index and size of Nigerian GDP. Labour productivity in Nigeria is three times below the average of countries with economies similar in size to Nigeria.

- Advertisement -
Ad imageAd image

Over the years, salary increases in Nigeria have been based on political correctness and labour union pressure, not on productivity. Worse still, no one pays attention to the real implications of such a political announcement for the entire national and sub-national economy, including the ability to pay problem. How do you expect a worker to be productive when his pay is not tied to performance or productivity? No wonder you will find mini-stores operated by employees of establishments within their respective offices. Ethnic and religious differences make it easier for “rogues” posing as staff to continue to plunder and share our shared resources.

Almost half of Nigeria’s output is driven by low-skilled employment and underemployment, with over 84% of Nigeria’s labour force suffering from a significant skills gap. Furthermore, only about 11% of the Nigerian labour force has post-secondary education. Unfortunately, government investment in the social sector continues to shrink. The government has paid no concrete attention to the educational sector in terms of quality and access. As a country, we have continued to confront an increasing mismatch between skills and labour market needs. This, without a doubt, has contributed to low wage and low skilled jobs.

In view of the above, it is important that instead of raising the minimum wage, investment in the social sectors, human capital and infrastructure development become a priority. They are important for creating the right and supportive business environment. The Nigerian labour union should therefore focus on getting the government to make the right investments to attract real investors. This could be done through dialogue or industrial action, not by the threat of a strike over the removal of the fuel subsidy.

Making Nigeria the destination of investment would ultimately lead to an increase in the demand for labour, resulting in higher wages. This is true if the demand for labour is greater than the supply of labour. Furthermore, as a policy, the government should determine wage increases on the basis of productivity and performance and not as a political tool.

Dr. Chiwuike Uba, Development Economist and Chairman of the Board, Amaka Chiwuike-Uba Foundation (ACUF) 08033095266

You Might Also Like

Hypertension: Case for Sodium Consumption Regulation, Healthier Diets

Tinubu’s Lifejacket And A Deer’s Sacred Skin By Festus Adedayo

Unplanned and Unprepared: Scary Outlook Of Retirement No One Talks About

EKITI’26: “Between Hullabaloo And Logic”

How Warning Labels Can Save Nigerians from Toxic Diets

TAGGED: Fuel Subsidy
INadminNG June 4, 2023 June 4, 2023
Share This Article
Facebook Twitter Whatsapp Whatsapp LinkedIn Telegram Email Print
Previous Article Two Months In Darkness, Igando Residents Beg Ikeja Electric To Intervene
Next Article Fuel Subsidy: Blackout Looms On Nigeria As Electricity Workers Vow To Join Strike On Wednesday
about us

Independent News Express (iNews Express), a publication of 4Ds Nigeria Limited, is birthed out of the desires of the founding fathers to report News as it is.

We value Professionalism, Excellence, Service, Creativity and Integrity.

The Company

  • Home
  • About Us
  • Contact Us
  • Privacy & Policy

Quick Links

  • Advertise with us
  • Newsletters
  • Deal

Categories

Find Us on Socials

© Independent News Express. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?