Financial analysts have aired different views on the impact of implementation of new minimum wage on the nation’s economy.
As some analysts believed that the mplementation of new minimum wage would lead to increase in the prices of good, thereby causing inflation in the economy, others said it will not cause inflationary growth but it would boost aggregate demand which would easily be absorb in the system.
An economist, Mr Ifeanyi Okolo while commenting on the likely effect of new minimum wage in the country, said the payment of new wage would lead to increased in demand of goods.
He said the rise in inflation rate which has already started would be sustained in the month of June and July following the anticipated increase in spending activity resulting from implementation of new minimum wage bill.
He said that once the government starts implementing new minimum wage, prices of goods would go up making life more difficult for those working in private sector.
He also said that the current build up in monthly price increases due to planting season would as well have negative impact on inflation rate in the month of June.
Managing Director Chief executive officer of Derivatives Company, Mr Bismarck Rewane said that federal government is likely to pay minimum wage in July after negotiations of consequential cost with Nigeria Labour Congress (NLC), adding that aggregate impact of N30000 minimum wage is N2 trillion, a 7 per cent of M2 supply.
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