Can Nigeria’s minimum wage address living crisis?

Nigerian President Bola Tinubu recently signed into law the new National Minimum Wage Act, setting the minimum wage at 70,000 naira. This development comes at a time of growing tension in the country over the rising cost of living. Many Nigerians have planned a protest on August 1st to voice their concerns about the challenging economic conditions they are facing. To shed more light on this issue, Eze Onyekpere, the Lead Director at the Center for Social Justice, joined CNBC Africa for an interview. Eze expressed his thoughts on the new minimum wage, highlighting that while the amount might sound substantial, it is actually one of the lowest minimum wages compared to other African countries. He pointed out that with the current economic situation, the 70,000 naira minimum wage is insufficient to cover basic necessities like rent, food, transportation, healthcare, and education. Eze emphasized the importance of prompt payment of the new minimum wage by all tiers of government and the private sector to alleviate the financial burden on Nigerian workers. When discussing the financial capabilities of the government and private sector to meet the new minimum wage requirements, Eze raised concerns about fiscal management and excessive spending. He suggested that by curbing excesses and optimizing revenue streams, both government and private entities could afford to implement the new wage structure. However, he acknowledged the potential challenges faced by the private sector, especially small businesses, in adjusting to the higher wage demands. Moving on to the planned protest against the economic conditions in Nigeria, Eze highlighted the need for a comprehensive government approach to address the root causes of the crisis. He criticized the government for its failure to engage effectively with youth groups and civil society in finding lasting solutions to the challenges faced by the population. Eze emphasized the importance of addressing issues such as unemployment, corruption, lack of basic services, and underdevelopment to restore hope and stability in the country. Regarding the upcoming protest, Eze pointed out that the widespread dissatisfaction with living conditions had organically sparked the demonstrations, rather than being led by specific groups or individuals. He stressed that the key sponsors of the protest were the pervasive hardships experienced by the majority of Nigerians, rather than external influences. Eze urged the government to focus on long-term solutions to improve economic conditions and restore confidence among the disillusioned populace. In conclusion, Eze recommended a systemic overhaul of economic policies and governance to alleviate the crisis and prevent future unrest. He called for a collaborative effort involving monetary policy, fiscal policy, and trade policy to address issues like unemployment, inflation, and slow economic growth. Eze criticized the government's current approach to economic management, highlighting the need for a more nuanced and inclusive strategy to tackle the country's pressing challenges. As Nigeria braces for the planned protest amid economic uncertainties, the insights shared by Eze Onyekpere underscore the urgent need for proactive measures to address the underlying issues driving social discontent and economic instability.