Nigeria In One Minute

Fear of Inflation Mounts as Buhari Approves New Minimum Wage

As workers and their unions celebrate the N30,000 new minimum wage approved by President Muhammadu Buhari yesterday, analysts have expressed fear that the fresh wage regime could put inflationary pressure on the already fragile economy.

Those who spoke to THISDAY said the 60 per cent minimum wage increase was likely to lead to a general increase in prices of goods and services in the short-term.

One of them, the Chief Executive Officer, Financial Derivatives Company Limited, Mr. Bismarck Rewane, pointed out that the wage hike would lead to inflationary pressures.

He said, “Productivity growth in Nigeria is still minus 0.7 per cent. So, an increase in the minimum wage and all other increases that would follow and it means that basically inflation is likely to increase.

THISDAY, November 7, 2018

 

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