Minimum Wage: Expert Says Policy Will Not Cause Inflation - Liberty TV/Radio - News - Voice For All! Vision For Alll!
Editor 2
May 5, 2019
Aneconomic expert, Uche Uwaleke said the new minimum wage would not lead toinflation contrary to speculations by some Nigerians.
Uwaleke,the Head of Banking and Finance, Nasarawa State University, Keffi said this inan interview in Abuja.
Herecalled that the monthly reports by the National Bureau of Statistics, NBS hadshown that inflation in Nigeria, against the backdrop of low economicactivities was more of the cost-push type than demand-pull. This, he said wasdriven more by high cost of fuel, electricity and transport.
TheExpert added that historical evidence does not also support the claim that thenew minimum wage would worsen inflationary pressure.It would be recalled that the last economicrecession was caused by weak aggregate demand when many state governments couldnot pay salaries due to reduced FAAC allocations from dwindling oil prices.