Living wage is the foundation of the Nigerian dream
The conversation between minimum wage and living wage is a contentious argument between the labour movement and the government. The living wage narrative should go beyond politics; it is the anchor for building a nation that transitions from economic survival to economic prosperity.
The private sector-led economy is the real driver of a living wage. The government’s role in the economy must be limited to regulation. The proposition of a free-market economy and the limited role of government in the economy are the central arguments of Adam Smith’s book, The Wealth of Nations.
The term “American Dream” was created in 1931 by historian and businessman James Truslow Adams in his book, The Epic of America. Nigeria has similar potential to the United States, but we need sincerity of purpose to activate this concept of the “Nigerian Dream”. America today is viewed by immigrants who migrate to the country as the land of opportunity. The European settlers who fled Europe in the 17th century because of tyranny came to the land with the purpose of creating an environment where everyone could achieve their dreams through hard work, creativity and persistence. America is the land of opportunity not because of its resources, but because of the shared conviction that anything is possible in America if you put your mind to it.
The actualisation of a dream is driven by hope. As a nation, we need to inspire our people through a self-awareness of the possibilities inherent in the Nigerian Dream. Nigeria has all it takes to be a great nation, but we must fix the governance issue through a paradigm shift towards seeing Nigeria as a land of possibilities.
Minimum wage does not guarantee financial security; the present economic reforms have increased the cost of living. These are real issues Nigerians are battling with: the cost of food, rent, transportation, electricity, healthcare and education have all increased. The Nigeria we all desire must be able to put affordability at the centre of discussions. We must be able to distinguish between minimum wage and living wage. The former is the lowest amount an employer is legally required to pay an employee for work done within a particular period, while the latter is the amount of income an employee needs to live a decent and standard life with his or her family.
The public and private sectors must have policies that encourage infrastructural development, business investment, adaptable wage policies and productivity-friendly taxation. Nigeria must be able to create a living wage standard that serves as a benchmark for every Nigerian employer in both the public and private sectors. The Nigerian Dream will not be possible without productivity and wages improving together. For this to be actualised, there must be huge investments in physical and human capital to build the capacity required to sustain a decent living wage.
The China every economist talks about started its economic reforms in 1978 under a man called Deng Xiaoping. Deng turned China from an agriculture-based economy into an industrialised export nation that enhanced production through the 1978 economic reforms. He created an environment that attracted foreign investment through transformational infrastructural development. The Chinese economy grew consistently from 11.3% in 1978 to 14.2% in 2007. China had 30 years of export-led economic growth. The growth was driven by the creation of special economic zones in Shenzhen, Zhuhai, Shantou and Xiamen. The Chinese economic model is a template for emerging economies that desire transformation through industrial manufacturing and technological capacity.
The Nigerian Dream can drive this belief by using the Renewed Hope Agenda as a benchmark for economic renaissance.
The living wage aspirations are possible with public and private sector leaders working together towards a common goal. This belief in the Nigerian Dream has to be driven by a non-partisan blueprint that incorporates the right components of the Nigerian sociocultural context.
The present economic reforms are showing some positive signs, and infrastructural development is moving Nigeria in the right direction, but the benefits must trickle down to the subnational level. The states and local governments must use infrastructural development as a tool for entrepreneurial aspirations. Making Nigeria an industrialised nation must be an aspiration of all elected leaders, regardless of political affiliations.
The journey since 1914, when the Northern and Southern Protectorates were amalgamated, has created a nation full of potential. The struggle for independence in 1960 confirmed the vision of the nation that the founding fathers envisaged: a nation that would achieve its full potential, where resource control, fiscal autonomy and devolution of powers would bind our common destiny; a nation that works for all. A nation where dreams are possible and fulfilling them comes without friction. The living wage conversation will endorse the Nigerian Dream and give every citizen a real sense of patriotism.
Nigeria is blessed with mineral and human resources; the only missing link is determined leadership that unites every tribe around the Nigerian Dream. The 21st century presents new uncertainties that nations must contend with: artificial intelligence, oil supply shocks and a youthful population battling between getting good jobs and starting families. The Nigerian Dream will inspire a new set of leaders who are ready to serve and are driven by a common goal. Nation-building is not limited to a generation; it involves passing the baton of leadership to the youthful generation. America has achieved this with the American Dream, while China did it through industrialisation and a Chinese patriotic agenda. Nigeria has all the capacity to become the next wonder of economic success in the world.
The Nigerian Dream is the vehicle for creating a nation where power supply is uninterrupted for 24 hours, where a living wage is a right and not a privilege. A nation where foreign investments flow without bottlenecks, where human rights are the driving force of patriotism, and where young people are part of nation-building. Nigeria’s leadership role in the global economy in the 21st century is possible with the Nigerian Dream.
*Oluwagbenga Oyebanji is Public Affairs Analyst and Convener of Progressive Youth Mandate