Diaspora based Nigerian and politician Francis Onabis has advised the federal government of Nigeria to as a matter of urgency enthrone proper economic reforms to cushion the wage increase effect on Nigerians in other not to have a backlash.
He said labour the federal government should address underlying issues, particularly inflation to ensure any wage increase translates into real improvement in the standard of living for workers.
Government he further maintains should curb the current inflation without which any increase in wages will be meaningless as it will trigger more crisis.
Specifically, according to Onabis, exchange rate volatility affecting even locally produced goods, as well as cost of production due energy hike and high taxes are some of the impediments causing arbitrary increase in the country.
Customer spending too he says is capable of causing inflation arising from wage increase without proper economic study of the situation.
In proffering further solutions, Francis Onabis says, Federal government should peg prices of goods to help stabilize cost of living, possibly by introducing price control board to identify essential commodities most needed daily by Nigerians.
Prices should be set based on thorough market research in collaboration with stakeholders. He adds that the situation should be monitored to enforce compliance, as he equally emphasis that they should be tax exemption to companies involved in the production of essential commodities such as Small and Middle sized Enterprises ( SMEs) to compete effectively.
He also enumerated broader economic measures to include investment in infrastructure to eliminate transportation cost by strengthening the naira to control inflation to enhance key sectors.
According to him, the minimum wage saga in Nigeria requires a multifaceted approach that goes beyond increase in wages but the creation, and implementation of broader economic reforms to stabilize equitable economic environment.
Onabis, who assures of offering consultancy to government, also hopes that soon Nigeria will get it right and be in proper footing with other advanced nations.