The Ethics of Minimum Wage: A Philosophical Perspective on Nigeria's Wage Struggle

 

For weeks we have witnessed the struggle for an increment in the Nigerian minimum wage. This situation is multifaceted and it touches on economic, social, and political dimensions. Nigerian philosopher and professor Sophie Oluwole,  once stated:

"Justice and fairness are the foundation of any society that wishes to thrive. When the basic needs of the people are ignored, the very fabric of society is at risk"'. Truthfullly, every country must be able to ensure that her citizens can afford basic essentials. Sadly, Nigeria has faced considerable inflation in recent years, causing the cost of living to rise sharply, such that the average Nigerian struggles to provide 2 meals a day for himself, and family. This has made it increasingly difficult for workers to meet basic needs. Many have become homeless, many have died because of their inability to afford good healthcare, and many have dropped out of schools in a bid to survive.

It is being argued that an increment in the minimum wage is essential to help workers keep pace with these rising costs and maintain a decent standard of living. Many think that by raising the minimum wage, the government can help reduce the income inequality gap and improve the living conditions of millions of Nigerians. However, this line of thought hasn’t taken into consideration the cost-push inflation. Cost-push inflation is a phenomenon which occurs as businesses pass on the burden of increased labor costs onto consumers in the form of higher prices for their products and services.

While a minimum wage increase seems beneficial for workers, it is a secret invitation to more hardship. Increasing the minimum wage can in fact act as an hinderance to economic growth. It is not guaranteed that the average standard of living in the country will improve or that the inflation will reduce. If anything, cost-push inflation is likely to arise. In addition, this move can present challenges for businesses, especially small and medium-sized enterprises (SMEs). These businesses might struggle with the increased labour costs, which could lead to layoffs, reduced hiring, or even closures. It is crucial for the government to balance the needs of workers with the potential impact on businesses, possibly by offering support or subsidies to SMEs.

Someone may argue that increasing the minimum wage can act as an economic stimulus, for instance, when workers have more disposable income, they are likely to spend more on goods and services, which can boost local businesses and stimulate economic growth. This can create a positive cycle of increased demand leading to higher production and potentially more job opportunities. But have you thought of the struggles local businesses and regular businesses will face with dwindling resources and infrastructure? an inconsequential profit margin and the need to comply with this new payment scale? What about regular inspections and penalties for non-compliance such businesses may have to deal with? Have you thought about how businesses will retaliate?

Instead of advocating for an increase in the minimum wage, why not champion the cause of equitable compensation for all? We should call for standardized labor compensation and payment schemes across all three branches of government—the Executive, Legislative, and Judiciary. If our true aim is to achieve a balance between the upper, middle, and lower classes, to bridge the income inequality gap, and to enhance living conditions in society, these are the demands we must make.