GAFAMORG says salary increase doesn’t mean living wage

Nigeria must urgently convert its recent economic reforms into jobs, higher productivity, lower production costs and rising household incomes, the Nigerian Economic Summit Group (NESG) has said.

The group said yesterday that reforms that have helped restore macroeconomic stability would amount to little if they failed to translate into productive investment, stronger businesses and improved living standards.

Speaking ahead of the 32nd Nigerian Economic Summit (NES#32), scheduled to hold in Abuja from October 26 to 27, NESG Chief Executive Officer, Dr Tayo Adeloju, said Nigeria had moved beyond the immediate challenge of economic stabilisation to a more difficult task of turning stability into broad-based prosperity.

He said the country must strengthen the link between reform and investment, investment and productivity, productivity and jobs, and jobs and shared prosperity.

His warning comes as Nigeria continues to contend with high production costs, infrastructure deficits, low productivity and insecurity, while more than 90 per cent of employment remains informal.

Meanwhile, the Gani Fawehinmi Memorial Organisation (GAFAMORG) has called for a fundamental shift in how workers’ welfare is measured, saying a salary increase should not be mistaken for a living wage.

In a statement signed by its Chairman, Babatunde Agunbiade, and Public Relations Officer, Ade Adeoye Adewumi, the organisation said the real test of any wage increase is not the percentage announced but what the income could buy.

It noted that workers could receive substantial pay increases and remain unable to afford food, housing, healthcare, education and other essentials if the cost of living rises faster than their income.

GAFAMORG acknowledged the sacrifices of Nigerian soldiers, including exposure to danger, separation from their families and difficult working conditions.

It said soldiers deserved decent pay as well as adequate accommodation, healthcare, family welfare and dignified retirement.
However, it stressed that their welfare should not be assessed solely by the size of a salary increase.