Kosisochukwu Ezenwune
@kosiwonder
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Nigeria's introduction of a new minimum wage aimed to improve the lives of low-income workers by boosting their purchasing power. While this can stimulate economic growth, it also presents challenges.
Increased labor costs can lead to inflation as businesses pass on higher expenses to consumers. To remain competitive, some companies may reduce staff or avoid hiring, leading to job losses. Additionally, it might encourage a shift from formal to informal employment where wages are lower and less regulated.
To maximize the benefits of the minimum wage, The government should implement the wage gradually, improve the business environment, invest in skill development, and strengthen social safety nets. Businesses can enhance productivity, diversify operations, manage costs efficiently, and collaborate with stakeholders. Workers can prioritize skill enhancement, financial literacy, and collective bargaining.
By combining these strategies, Nigeria can mitigate the negative impacts of the minimum wage, such as i⦠2 replies
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