Hey guys, welcome to a special MIDWEK episode of our Money Spaces. Of course, we're always talking about money, the economy and personal finance, and we're talking wages, wages, right the minimum wage in Nigeria. Of course, what's going on is that the Nigerian Liberal Congress and the Federation, let's put out with the Federation and negotiating a brand new minimum wage for Nigeria. As we know, NIS minimum with is about thirty thousand. All up,
guys, it's about thirty thousand naira. If you converted to dollars, that's don't even try to convert that. That's really really low. So of course the wage has got to go up. The problem is this the Labor Congress is asking for. I think last time I saw the number about four hundred and something thousand, just like just this four hundred thousand, it's about two hundred and eighty six dollars or something like that. Yeah, that's what they're
asking for. The federal government, I understand, has given them sixty thousand. I'm hearing ninety thousand that they are often to the ragionar Leabel Congress,
so call up the strike and that becomes the minimum wage in Nigeria. So I think just to good as you talk about minimum wage in general, how it affects you, and how of course it can affect Nigeria, and if labor is right to request for the minimum wage, and how perhaps can we get out of this conundrum that we find ourselves with the federal government and label. So just first is first, minimum wage just means what it says minimum wage. That means that you cannot as an employer paid below that wage.
You can pay more, but you can't pay below. In Nigeria and mostly all regions, minimum wage usually a federal wage, but states can take on that wage and increase it, like the state's minimum which is seven point twenty five dollars an hour. Many states pay fifteen, but you just can't go below seven point twenty five in Nigeria. So in Nigeria the same thing. It's a federal system. So testy thousand is paid by federal states even lookal
government areas. So that's just the background to it. Now you have to agree somewhat with labor stance. Inflation is thirty three percent, food infliction is forty percent. The economy has really really collapsed. If you had a million dollars, say in the near nineteen ninety nine, it's what not a millionaire today. It's really gone down in purchasing power. So Label's points is very very simple. As the purchasing power has gone down, we want to get
an increase in our wages that can allow us to even live. We're not looking for logship. We just want to live. So four hundred thousand, they feel would compensate for the loss of income already and would also allow them hedge against the inflation that would occur. That's how I see what they are doing. They're like, hey, yes, we want to get paid now, but we also think if this is going to go up in the future, so let's get all this undred k in now and sit on it.
Right. The problem is that the federal government is saying they cannot pay four hundred thousands. And this is a unique station where both sides are correct. Labor is correct they need to a pay increase, and the federal government is actually correct that they cannot pay four hundred As a matter of fact, I did some numbers. I doubt the federal government can pay even one hundred thousand. The problem is this, the federal government has been a very very bad
manager, not just off money, but of their image. The Federal government's image has been dented by the way it has carried its business, the way it speaks, even the way the National Assembly has carried itself. They have damaged the federation. When I say the federation, I mean the Federal Stata. Look at government there is the how they come across is that they're on caring, that they are only interested in themselves and that they do not want
the workers to should we say, have a living wage. The National Assembly imported cars for themselves. SUVs imported these cars and when they were asked for it said because the roads are bad, okay, why not you buy Nigeria subs oh, because the foreign ones are better. So the National Assembly could import cars and spend dollars. But National Stibly is now asking the workers to understand the situation on grand that they cannot fund four hundred thousands for the workers.
Again, like I said, both sides are correct. The National a stimbilis correct they cannot pay fore hundred thousands, but the workers are also correct. They need not just a living wage, but the way that is indexed for inflation. Going forward, but the National Assembly, the federal governments have run the economy and the up in such a manner that they are no longer should we say abbitrus. They did not have the equity to ask anyone to
cut costs because they haven't caught costs. And I think that's what the negotations are breaking down. If the administration these guys will have today, Im Sertainable had come into power and on day one he had drawn an austerity budget. He had cut down frivolities, He had not bought SUVs or yours. He had essentially just ran things the way, very very lean. I doubt that he would have sinusuation where today the label guys have been asking for foruntred thousands.
Even if they had acted, he would have told them, you see, I have cut down my expenses. I mean plenty answer report. I don't think I'm able to pay you guys for inred thousands. And they would have negotiated. But because he hasn't managed their relationship perfectly, I think that's what's holding him back. So I talk about the figures more, but I don't hear from you guys. What do you guys think? The title says, how much should we pay four hundred K one hundred k and all that.
I also have my idea on how I think we can break the impasse. But let me just say by the numbers, just the numbers alone. I don't think the federal government can afford hundred and I know no state, including Legos, can afford hundred thousand minimum wage to pay. The idea is not that they afford to pay today, is the sustainability of paying that. It's not the wage, it's the economy. The economy has got to support the wage. The wage cannot be artificial. What I mean is this.
You can't have a shop where you are selling pure water and then you are paying your manager. That's sending you a pure Worter one millioner because you want your manager to have a living wage. No, you either get you the manager and you do it yourself, or you don't have you you don't sell pure worter. Maybe you sell champagne. You see the point I'm making. You can sell pure water and pay the seller one million because the pure water
business, the center of pure water, cannot carry one millionaire salary. It's not the salad as the problem, it's what you are selling pure water. So it's not the wage that's the problem. Is the niger economy that's the problem. S three, you're the first guest hopping real quick, what's your take on this? Stue? Like I said, we all support the NLC to get to this increase, but what's your take? Really? Do you think what number is on your head? And do you think we can afford
it? Go ahead? Es Tree is not there, so let me go to my DMS Calu. Respectfully, I disagree with you. I think Nigeria can pay one hundred thousand, and they can even pay four hundred thousand. They simply have got to cut down on the waste that we are seeing. And that's what really you are saying that if Nigeria cuts down on the waist. Hey, guys, can you hear me? Just tumble if you can hear me? Really, I think I was muted, Estra, can you hear me