Why Labour Should Link Minimum-Wage Demands to Inflation Control

Higher wages do not automatically cause inflation. I believe inflation is driven mainly by excessive money creation, especially when government finances new spending by printing money rather than raising sustainable revenue. Labour unions should therefore push government to control reckless money printing while negotiating wage increases. If wages rise without stronger public revenue and productivity, government may resort to printing money to cover its costs, further weakening the naira's purchasing power. Unions should demand a higher government-revenue-to-GDP ratio and a minimum wage that can cover at least ten times the cost of a one-room apartment for a person living alone. Better revenue management can reduce reliance on inflationary financing and protect workers' incomes.

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