Sunday, 7 October 2018

Nigeria's economy will cripple with a N50k minimum wage - Former Senator, Olorunnimbe Farukanmi

Nigeria's economy will cripple with a N50k minimum wage - Former Senator, Olorunnimbe Farukanmi

A second republic representative, Chief Olorunnimbe Farukanmi on Saturday, said the N50,000 the lowest pay permitted by law being unsettled by Nigerian specialists, would have disparate outcomes on the country's economy.

As indicated by TheNation, the monetary master said workers are qualified for their wages, however, communicated the requirement for exchange associations to consider and take a gander at different wellsprings of income accruable to their bosses so as to asses the truth of the wages from which their compensations are paid.

“It is evidently clear that some of the various levels of governments in existence are presently owing their workers over 10 months salary arrears. It means that if some local and state governments are unable to meet up the N18,000 especially as sources of revenue generation are dwindling, the proposed N50,000 per month demanded by the labor force if acceded, can never be met by these present government” He said.

As indicated by him, the assets from unrefined petroleum deals speak to the fundamental wellsprings of income from which the organization account produces larger part of its assets. The senior statesman cautioned that new the lowest pay permitted by law of N50,000 would cause another monetary subsidence in the nation, as it would prompt general increment in the costs all things considered and sustenance stuff.

He added: “with the large-scale reduction in the prices of oil in the world market, the country’s revenue has reduced drastically. At a time when the economy should be strengthened with a stable naira as against encouraging further inflation, to embark on a 250 percent wage increase will be enormously detrimental to the successful growth of the economy.”

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