Minimum Wage and Improved Productivity

The new minimum wage is a welcome development. Its sustainability requires civil service right-sizing, SMEDAN-led business schemes to absorb any excesses, civil service modernization and automation, and export-led economic growth.

Civil Service Right-Sizing and Allied SMEDAN-led Business Schemes

Paying all existing civil servants well is a huge challenge, as productivity is too low. The government and its advisers must address this issue. We must pay well without throwing people into the labor market. We need to eat our cake and have it. A reset of our system is needed now.

To achieve this successfully, the following are required:

• Roles redefinition and process automation.
• Workforce optimization.

Workforce optimization will likely include:

• Moving workers to new roles aided by newly automated processes.
• Redeploying some workers to run their own businesses under schemes led by SMEDAN and other subnational institutions, powered by special intervention funds. Such schemes should cover:

1. Outsourcing some government operational processes to the private sector (with ultimate authorization of digital certificates, licenses, approvals, mandates and permits- DCLAMP- remaining with government officials).
2. Introducing government-supported business initiatives such as export and import substitution schemes.

Automation

Automation involves:

• Modernizing processes to enable remote services, reduce steps, and digitize the procurement of DCLAMP.
• Increasing speed and convenience.
• Optimizing civil service size.

Embracing Large-Volume, High-Value Exports

Deliberately strengthening the economy by driving an export-led approach that generates well-paying jobs for Nigerians with broader societal benefits.

 

To be continued…

 

Sir Mac Atasie

(CEO, Nextzon)