NDC Chieftain: Minimum wage increase has not matched rising inflation

Michael Olumide Alabi

A chieftain of the Nigeria Democratic Congress (NDC), Ladipo Johnson, has rejected the description of President Bola Tinubu’s administration as progressive, arguing that its economic policies have not adequately addressed the welfare and living conditions of Nigerians.

Johnson, who is also the NDC senatorial candidate for Lagos Central, stated this on Tuesday while speaking on Frontline, a current affairs programme on Eagle 102.5 FM, Ilese-Ijebu.

He argued that, in political terms, a progressive government should pursue policies that are more welfare-oriented and focused on improving the living conditions of citizens.

“Would you call President Tinubu’s administration a progressive administration? Progressive, in political terms, indicates when someone is slightly left of centre. That means, left of centre should be more welfaristic in nature,” he said.

The NDC chieftain questioned the level of government support available to Nigerians struggling with the rising cost of living, arguing that emphasis on revenue generation does not necessarily amount to progressive governance.

“How many of the Nigerian citizens, especially those who are struggling, will tell you that so-so-so is subsidised for them?” he asked.

Johnson said the government’s emphasis on revenue generation was, in his view, closer to a right-of-centre approach than a progressive one.

“Rather, you have someone whose track record has shown you, over time, since he was in Lagos, that seems to believe that when government is raking in revenue, that means he’s performing. So you see them always going for government revenue,” he said.

He contrasted the present administration’s approach with what he described as welfare-oriented policies implemented by some other political leaders, particularly in the areas of education and healthcare.

“They are saying that they are progressive, but go to Kano, for instance, or go and look at Mr. Peter Obi’s record. See what they did in healthcare. Look at the education. The scholarship schemes that they ran,” Johnson said.

Minimum Wage and Inflation
Johnson also questioned whether the increase in the minimum wage had translated into improved purchasing power for Nigerian workers.

He acknowledged that the increase appeared substantial on paper but argued that its real value should be measured against the rising cost of goods and services.

“We could have increased the minimum wage by over 100%. On paper, it sounds fantastic. What is the value of that increase in Naira terms and in the value of what it can purchase?” he asked.

According to him, an increase in wages without corresponding measures to contain inflation could undermine the purchasing power of workers.

Subsidy Removal, Government Spending
The NDC chieftain also criticised the removal of fuel and electricity subsidies while questioning the level of government expenditure.

“The other things you should be doing, you’re not doing. Government is still spending. The National Assembly is spending. Even the judiciary. That is the problem,” he said.
Johnson argued that the government should reduce unnecessary expenditure while asking citizens to bear the effects of subsidy removals.

“You take away fuel subsidy. You take away the electricity subsidy. Which other one have they not taken away? The government is not there so that a retired commissioner, or governor, or senator, or whatever, can be changing jeeps, and changing four-wheel drives, or what have you,” he said.

NELFUND and Graduate Employment
Johnson also questioned whether initiatives such as the Nigerian Education Loan Fund (NELFUND) would achieve their full objectives without corresponding efforts to expand employment opportunities for graduates.

“You say you are giving people money for quality education, whatever. When you educate them, how easy is it for them to get any jobs? Is the economy moving?” he asked.

He argued that Nigeria must address the relationship between education, skills development and employment, rather than focusing only on increasing access to education.

“Are we still doing theoretical education in this day and age? These are the questions we must be looking at,” he said.

Johnson cited Spain as an example, saying the country had, in the past, sought to produce technical workers alongside engineers.

“In Spain, I think in maybe the 90s, for every engineer they produced, they made sure they produced 20 technicians. So we have to know what we’re doing,” he said.

‘Don’t Just Do Policy for the Sake of Policy’
On whether the Tinubu administration had delivered economically, Johnson said government policies should ultimately be assessed by the results they produce.

“You can have a lot of initiatives, a lot of activities. The governors can be happy. They’ll be happy if they have more money to spend. At the end of the day, the buck stops at the president’s table,” he said.

According to him, policies should be designed and implemented with clear outcomes in mind.

“These policies are meant to achieve something. Don’t just do policy for the sake of policy,” Johnson said.

He maintained that Nigerians would ultimately assess the impact of the administration’s policies, particularly when they participate in the 2027 general elections.

Naira float and fuel subsidy

Johnson also questioned the simultaneous removal of fuel subsidy and floating of the naira, arguing that the combination had increased economic pressure on Nigerians.

“How can you remove a subsidy and at the same time float your naira? They are still reeling from that. They are trying to recover,” he said.

He further criticised the depreciation of the naira, questioning the justification for the currency’s decline in value.

“You take naira from 400 and crash it to 1,900,and someone is telling me that is the real value… That we are now back on 1,380 to the dollar and that is the real value,” he said.