Political office holders and income inequality in Nigeria

The huge gap between the rich and the poor in Nigeria can be traced to inequality in income distribution of workers in Nigeria. Income inequality gives birth to corruption, insecurity, lack of efficiency and capacity in the work place. It retards growth and development of both the individual and the nation.

With the exception of a few corporations, income inequality exists among large percentage of workforce in the private and public sector in Nigeria. The approved minimum wage of N18,000 is not feasible in the present economy. Workers have relied heavily on kick-backs and partake in all sorts of sharp practices just to meet up with the demands for survival. The low income wage ensnares workers in corruption hence making majority of Nigerians guilty of corruption. The President’s fight against corruption is a welcome development, but this corruption must be fought from all front. This time around, the fight against corruption must be by addressing the wage disparity that exists between highly placed public officials and the ordinary workers.

It is interesting to note that just less than one per cent of Nigerian citizens consume much of Nigeria’s budget in the area of recurrent expenditure, 469 Senators and House or Representatives members earn salaries and allowances that can pay the minimum wage of a huge number of Nigerian workers. The Nigerian law makers are known to be the highest paid law makers in the world, with an annual salary of $189,500 which excludes allowances. The RAMFAC reports that the constituency allowances of senators are 250% of their annual basic salary, while the members of the House of Representatives receive 100% of annual basic salary. There are 1,500 political office holders which includes (Ministers, Special Advisers and Special Assistants) The Certain Political, Public and Judicial Office Holders (Salaries and Allowances, etc) (Amendment Act) of 2008, enumerates the allowances of these public officers as follows; (using the annual basic salary of N2,026,400 as the basis): accommodation 200%; utilities 30%; domestic staff 75%; entertainment 45%; medical facilities and security are provided by the state and will cover treatment in foreign hospitals; furniture 300%; personal assistant 25%; motor vehicle loan 400%; motor maintenance and fuel allowance 75%; severance gratuity 300%; leave allowance 10%; newspaper allowance 15%; duty tour allowance N35,000; estacode USD900; monitoring allowance 20%.

The total number of federal civil servants in Nigeria amounts to 1.5 million. Officers of great level 10-15 enjoys far better salaries, allowances and fringe benefits compared to what is paid to those from entry level 01 to level 09. It is true that the position a person occupies together with his or her level of experience and education should determine what is earned. This truth does not write off the fact that a huge margin exists in the allocation of benefits and allowances to employees of different strata which must be properly streamlined to address the huge inequality gap.

The focus of addressing income inequality should be granting workers access to reasonable purchasing power that meets with competing demands of the society. In doing this, there must be a real cost computation. Consideration must be given to the market cost of living such as cost of education, housing, transport, communication, feeding, health, utilities.

For the private sector, the situation appears to be worse. The situation is heightened by the non-regulation of labour in the private sector. The Nigerian Labor Unions’ agitation for employee benefits focuses largely on the public sector. Most workers in the private sector are subjected to harsh working conditions. Employees are sometimes paid commissions only when they attract income to the company and where this does not occur such workers go home with nothing at the end of the month. Many companies do not pay their workers for up to six months.

The increased price of goods and commodities in the markets, including high cost of living affects every Nigerian. The unemployed have the right to life, which means they should have a means of survival. Social Security Schemes, including skill acquisition centres should be set up for the unemployed citizens in Nigeria.

To successfully address inequality, there is need for proper review of the salaries of all public office holders in the Executive, Legislature and Judiciary with the aim of cutting down some unreasonable benefits. The Federal Government should consider using the market realities as mentioned earlier, to review the minimum wage, which has been long overdue. A comprehensive labour law should be made to guide the remuneration and compensation of workers in both in public and private sectors.

Emejuiwe writes from Centre for Social Justice, Abuja, FCT