An economic expert, Uche Uwaleke said the new minimum wage would not lead to inflation contrary to speculations by some Nigerians.
Uwaleke, the Head of Banking and Finance, Nasarawa State University, Keffi said this in an interview in Abuja.
He recalled that the monthly reports by the National Bureau of Statistics, NBS had shown that inflation in Nigeria, against the backdrop of low economic activities was more of the cost-push type than demand-pull. This, he said was driven more by high cost of fuel, electricity and transport.
The Expert added that historical evidence does not also support the claim that the new minimum wage would worsen inflationary pressure.It would be recalled that the last economic recession was caused by weak aggregate demand when many state governments could not pay salaries due to reduced FAAC allocations from dwindling oil prices.
