Buhari’s implementation of Rewane Minimum Wage Report will act as fiscal stimulus to spur inflation rate for economic growth

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    Analysts tell Naija247news that the implementation of the increase in minimum wage will act as fiscal stimulus which would induce higher inflation rate in the short term; however, in the long run, act as a catalyst for economic growth which would further increase non-oil revenue, especially tax revenue for the government, as it stimulates businesses to increase output and generate more employment.

    In the just concluded week, President Muhammadu Buhari received the report on the implementation of the N30,000 new minimum wage from the Bismarck Rewane – Led Advisory Committee and promised speedy review of the report, in order to finalize work on the long-awaited wage bill.

    The good news for Nigerian workers came some days after the National Assembly passed the minimum wage bill and called for a review of the Revenue Sharing Formula to give the states more financial muscle to foot the new wage bill.

    Meanwhile, the Technical Advisory Committee’s report was expected to have proffered solutions to the following major terms of reference, for the Federal Government: to develop, and advise government on how to successfully bring about a smooth implementation of impending wage increases; Identify new revenue sources, as well as areas of existing expenditure from where some savings could be made in order to fund the wage increases without adversely impacting the nation’s development goals as set out in the Economic Recovery and Growth Plan.

    Elsewhere, the Federal Government’s anti-corruption efforts suffered another blow on Tuesday, March 26, 2019 as a report from Socio -Economic Rights and Accountability Project (SERAP), predicted widespread corruption in the country and revealed that the public perception of government’s anti-corruption war would likely dilute public support needed for successful anti-corruption initiatives.

    According to the non-governmental organization’s report titled: “Nigeria Anti-Corruption Performance Assessment Survey”, despite the Federal Government’s anti-corruption crusade, corruption level had remained unchanged and is expected to increase going forward.

    SERAP rated Nigerian Police Force (NPF) as the institution with the highest rate of corrupt practices, followed by the power and educational sectors as well as the judiciary.

    Thus, it recommended an independent financial audit of the NPF and the ministries of power and education by the Federal Government and make the report public while it also called on the National Assembly to pass the Proceeds of Crime Bill, the Whistle-blowers Bill and the Witness Protection Bill among others.

    We opine that continuous controversies surrounding the anti-corruption fights are not helpful to the government in power and have been watering down the government’s fight against corruption. However, with the recently reviewed salaries of the police force, change of leadership and other on-going reforms, the entrenched corruption in the police force should significantly reduce.

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    Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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