IMPLICATIONS OF THE NEW NATIONAL MINIMUM WAGE ON THE SOCIO -ECONOMIC DEVELOPMENT OF NIGERIA

Abstract

This article examined the implications of the new national minimum wage on the socio-economic development of Nigeria. It is right and legal to boost the productivity of workers as well as the economy via regular increase of wages. Increase in the national minimum wage of workers is one of the legal mechanisms through which the purchasing power of the people/workers can be enhanced. However, this may result in inflation; undue pressure on the employers of labour; the discouragement of a lot of small companies from employing; increase in corruption and so on. Irrespective of these, an increase in minimum wage will keep the economy rolling; bring about more money in circulation; motivate the workers to operate at the optimum level; be a positive impact on the economy; allow workers to have more disposable income; and lead to increase in foreign exchange earnings. Therefore, to ensure the sustainability of the new national minimum wage without it affecting the socio-economic development of the country, the article recommends, among others, the creation of an enabling environment by the government for the people through investment in massive infrastructure and other basic amenities so as to drive down cost of production; and the creation of wealth by the government for the country in order for it to have more money to sustain the payment of the new national minimum wage.