Housing experts have expressed divergent views on the new N30,000 Minimum Wage Bill, which was signed into law last Thursday, by President Muhammadu Buhari.
The new minimum wage is effective April 18, as announced by the Senior Special Assistant to Buhari on National Assembly Matters, Sen. Ita Enang.
Managing Director, Federal Mortgage Bank of Nigeria (FMBN), Mr Ahmed Dangiwa, said that the increase in minimum wage by the Federal Government would boost access to mortgage and housing affordability by Nigerian workers.
Dangiwa said that the new minimum wage would enhance access to housing by workers, mostly the low and medium income earners, who were contributors to the National Housing Fund (NHF) Scheme.“FMBN is the foremost mortgage bank that provides affordable mortgage for the contributors to the NHF scheme.
“We honestly commend this initiative by the Federal Government, it is a welcome development,” he said.
Though workers were excited by the new minimum wage, some Nigerians, however, have been nursing fears that the long awaited wage increase, when signed into law, may bring about inflation.
A housing expert, Mr Festus Adebayo, who is the President of Housing Development Advocacy Network, said that the new minimum wage might be a long journey to achieving low cost housing because of possible inflation.“I congratulate Nigerian workers; but what we need is more than minimum wage to be home owners as civil servants,” Adebayo said.
An Economist, Mr Lawrence Nze, who also commended the Federal Government over the development however, disabused the minds of Nigerians who were thinking that the salary increase would prompt inflation.
Nze, an Agric Business Officer with Access Bank, explained that though there would be flow of cash that could make demands go up, the new wage increase would boost the welfare of citizens and overshadow inflation.
Source: By The Tide