An econometrist and Senior Lecturer in the Rivers State University, Prof. Ayodele Momodu, has picked holes in the new minimum wage now waiting for the last haudle.
Prof. Momodu in a chat with The Tide last week in Port Harcourt was of the opinion that if it sails through it would not solve the challenge of the average worker.
The university don argues that anytime wages are increased cost of goods and services also skyrocket thereby defeating the purpose of such a raise.
Momodu said, “As far as I’ am concerned minimum wage cannot solve the problem of the average Nigerian worker. I think every time labour asks for wage increment they look to me as confused”.
Rather than ask for wage increment, he opined that labour should seek for improved infrastructure and social services.
“If you look at it properly you will discover that N18,000 is not too poor if we have a good transport system, an effective health care, water and electricity,” he maintained.
As far as he was concerned, the additional N2,000 being added by the National Assembly to the old minimum wage of N18,000 is infinitesimal compared to what the expenditure on essentials, an average worker makes monthly.
Besides, he argued that the new tax system being championed by the federal government would further make the new minimum wage ineffectual.
On his opinion over the new tax system being planned by the government, Prof. Momodu submitted, “Am not against tax because it’s a major source of government revenue. For me, the federal government should expand its tax dragnet”.
The economic expert also called on the state government to see how it can improve its tax system, so as to reduce too much reliance on oil revenue.

Kevin Nengia