🇳🇬NigeriaWest Africa
Economists say federal workers' pay increase will not trigger inflation
via Punch Nigeria3 min read
Economists believe the Federal Government's recent pay increase for some federal workers will not cause inflation. The Head of Service announced the pay rise affects workers under the Consolidated Public Service Salary Structure and the Consolidated Research and Allied Institutions Salary Structure. Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise, stated the increase is too small to generate significant inflationary pressure, noting that public service salary levels are not high and the scope of the increase is limited. He emphasized that inflation is typically driven by a substantial rise in money supply, which this adjustment does not represent. Dr. Ayo Teriba, Chief Executive Officer of Economic Associates, suggested the increase might instead help alleviate poverty among public workers due to their currently low wages. However, Teriba advised the government against making permanent wage adjustments without clear justification, urging transparent communication of the rationale. He warned that responses to temporary external shocks, like geopolitical tensions, should be temporary and time-bound, not open-ended. Teriba also stressed that any policy aimed at improving workers' welfare should be comprehensive and clearly framed, applied broadly across sectors, and based on transparent economic reasoning.
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