Sunday, 24 November 2024

Ajibola Olaniyi: Workers salaries: The South West account

Economists by their conclusion on macroeconomic model discovered categories of compensations for different factors of production. While the custodian of other factors, who is the Entrepreneur gets profit, the margin between cost of production (including wage of labour) and the output of labour, labour traditionally gets wage that pathetically less than his output.

It is in this light that one of the most celebrated political thinkers, in the person of Karl Marx described the wages of workers in a capitalist economy as nothing but a “starvation wages” a take home that is not enough to take home.

Of course, the focus of Karl Marx in the 19th century labour struggle did not in anyway envisage the new concept in the labour-employer relationship of 21st century, which predominantly revolve around fierce agitation for not increment of salaries, but payment of salaries.

The sudden lexicon of nonpayment of salaries in the Nigerian political- economic space appeared copiously in the third dispensation of the fourth republic, when the leadership laxity on the age-long monoculture economy of Nigeria became a major embarrassment by the unexpected glut of crude oil in the international market.

Since over 95 per cent of Nigerian GDP comes from oil, the dwindle oil revenue accruing to the country due to oil glut in the international market threw an heavy spanner in the wheel of economic wellbeing of Nigerians, especially the civil servants.

Statistics revealed that as at May 1, 2016, exactly 26 states of the federation were owing their workers between 2 and 8 months, mostly in the 17 states of the South, in which South West tops the list, followed by South East.

The pathetic situation of the workers in those affected states prompted the Federal Government to give financial solace in form of “bail-out funds twice in 2016, to help states that were finding it difficult to pay salaries and allowances.

Despite this intervention, four out of six states in the South West are still owing workers salaries between 5 to 7 months.

For instance, Oyo State government with acclaimed wage bill of N5.2bn as at February 2017 is owing 5 months salaries and pensions.

Ondo, with the announced wage bill of N3.8bn has been owing workers in the state for the past seven months by the time the former Governor, Segun Mimiko relinquished power.

In Ekiti, Governor Fayose, with controversial N2.6bn wage bill is owing four months salaries after paying the workers two months out of the arrears early this year.

Osun State, a state that has consistently made headlines on the issue of nonpayment of salaries and emoluments surprisingly paid four months salaries of its workforce at the end of 2016, after receiving a total of N11.7bn in the second leg of the bailout intervention from the Federal Government.

Osun,according to government record arguably has a wage bill of N3.7bn before the introduction of Modulated Salary Scheme, recommended by Revenue Apportionment Committee headed by the leading labour leader in Nigeria, Comrade Hassan Sunmonu, as a response to nagging economic downturn.

A credible source at the government circle disclosed that, with this scheme, in which level 1-7 get 100 per cent of their salaries, level 8-10, 75 per cent, and level 10 above with 50 per cent, the wage bill of the state has drastically reduced to N1.7bn monthly since July 2015.

However, many of the civil servants have lost counts of their outstanding salaries, as result of production the agreed Modulated Salary Scheme, while many are wondering if the arrears would ever be paid.

Meanwhile, Ogun state, with wage bill of 9.1bn as at today is not owing any worker in its employment, except the allegation of over deductions from workers’ salaries in November 2016, which resulted to friction between labour leaders in the state and the government.

Lagos State, the financial hub of Nigeria, and the most economic viable federating unit in Nigeria has a wage bill of exactly N6bn without any outstanding salary.

To this end, it is important for governments at all levels to brace up and fine-tune pragmatic way of generating revenue without racing the bar of hardship of the common man, and surmount a political will to curtail opulence life in the corridor of power.

It is also instructive for both states and government at the centre to move beyond the paper tiger of diversification, and realistically resuscitate the sleeping economy under the grip of fluctuating black gold.

More importantly, sufficient and affordable energy, coupled with adequate internal security should be prioritised, if the government is really serious about the need to attract foreign investments to the real sector of the economy and boost the GDP, also as a way of stabilising the balance of trade.

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