Why the federal government is adopting “Selective minimum” wage increase

By on August 23, 2017

Civil servants waking up this morning will have been surprised at a new term being flung around in news media and accredited to the Vice President, Yemi Osinbajo. The term is ‘selective minimum wage increase’.

According to a transcript of Osinbajo’s speech during a session titled, ‘Conversation with the Vice-President’ at the 2017 Nigerian Bar Association National Conference made available by his Senior Special Assistant on Media and Publicity, Mr. Laolu Akande, this term may be the new approach of the Federal Government to the constant clamor of better remuneration for civil servants. What though is selective minimum wage increase?

What selective minimum wage increase is

The norm in Nigeria is a situation whereby when the Federal Government decides on a minimum wage increases as well as payment scales, the increase applies to all workers across all Federal Government parastastals, agencies and bodies.

However, with selective minimum wage increase, the Federal Government is considering increasing workers’ remuneration package, especially bonuses of certain government agencies, instead of increasing wages across board.

Thus, while workers in some agencies will be fortunate to receive increments, others will no be so fortunate.

Why this selective increase?

As many people will have already guessed, the dwindling revenue of the Federal Government is the main reason behind this new development, a fact that the Vice President did not hide. The stated that any increase in salaries must be matched by increase in revenues or else the FG may find itself unable to pay regularly. He explained that the 70:30 current expenditure structure in favor of recurrent expenses such as salaries was not sustainable, and could therefore not be worsened.

 

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