The minimum wage conundrum: …will the FGN bite the bullet or not?

Must Read

Free 250,000 FG/CAC Business Names Registration for MSMES

Business formalisation Support of the Micro, Small & Medium Enterprises (MSMEs) Survival Fund As part of Federal Government’s post-Covid-19 Pandemic...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

FG offers free business registration for 250,000 MSMEs

The Federal Government says it has offered free business registration for 250,000 Micro, Small and  Medium Enterprises (MSMEs) nationwide...
- Advertisement -

Recently, President Buhari assented the new N30,000 minimum wage bill into law with an immediate effect. The only exceptions to the Act are employers with less than 25 workers, a ship which sails out of the country and other persons who are in other kinds of regulated employment accepted by the Act.

The minimum wage conundrum: …will the FGN bite the bullet or not? - Brand Spur

Now, the next hurdle for the President and other employers of labour is about how the new national minimum wage will be funded. It is noteworthy that at the former N18,000 minimum wage, several states within the country were struggling to pay their employees amid stifling income growth. Thus, various recommendations, ranging from the more obvious expansion of tax-net, increased borrowing, to the removal of subsidy on petrol prices as well as Naira devaluation, have been touted as a solution to the overall financing quandary.

In the near term, we believe the option for the government is down to growing revenue-especially through a more aggressive tax mobilization and borrowing (internally and externally). While the latter recommendations (Subsidy removal & devaluation) may benefit the overall economy, implementation in the
immediate term may be followed by a strong public backlash, owing to their combined negative impact on real income. Sooner or later, we suspect the authorities would have to ‘bite the bullet’.

Read Also:  Insider Dealing: MTN Nigeria Discloses Purchase of 920,000 Shares by Toriola
- Advertisement -

 

UNITED CAPITAL RESEARCH

- Advertisement -
The minimum wage conundrum: …will the FGN bite the bullet or not? - Brand SpurThe minimum wage conundrum: …will the FGN bite the bullet or not? - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Read Also:  Second term for Emefiele: More of the same

This site uses Akismet to reduce spam. Learn how your comment data is processed.

The minimum wage conundrum: …will the FGN bite the bullet or not? - Brand SpurThe minimum wage conundrum: …will the FGN bite the bullet or not? - Brand Spur

Latest News

HappyFamily Launches New Nutritious Meal Replacement Product: DrMiow Professor Meal

KUALA LUMPUR, MALAYSIA - Media OutReach - 28 October 2020 - In 2012, HappyFamily is founded by Malaysia's renowned and outstanding iridology expert-- Master Tan. The...

Taiwan’s Sugarcane Straws Explore US Market

TAIPEI, TAIWAN - Media OutReach - 27 October 2020 - Taiwan not only invented bubble tea that has created a global phenomenon, one of...

XSD Partners with NEFIN to Power Up Its Plant with Solar Energy in Malaysia

HONG KONG, CHINA - Media OutReach - 27 October 2020 - Integrated papermaking specialist, XSD International Paper Sdn Bhd ("XSD") announced that it has entered into a power purchase agreement ("PPA")...

Local Business Crowdfunding Platform SeedIn Rebrands to BRDGE and Announces Planned Expansion Into Indonesia

Rebranding exercise aims to better harness the Kampung Spirit of Singaporeans supporting their favourite local businesses SINGAPORE - Media OutReach - 27 October 2020 - Singapore-based...

GS1 Hong Kong and buildingSMART Hong Kong Chapter signed a MoU to advance global standards in the construction sector

HONG KONG, CHINA -  Media OutReach - 27 October, 2020 - GS1 Hong Kong has signed a Memorandum of...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -The minimum wage conundrum: …will the FGN bite the bullet or not? - Brand SpurThe minimum wage conundrum: …will the FGN bite the bullet or not? - Brand Spur