Published On: Tue, Jan 17th, 2017

Bank foresees rising upheavals by Nigeria labour

RMBLAGOS, (CAJ News) – RISING wage demands are among factors projected to mar a projected decline in inflation over the next three years in Nigeria.
The projections by Rand Merchant Bank (RMB), the international markers watcher, come in the course of inflation rising to 18,5 percent year-on-year in December from 18,4 percent in November.
Nonetheless, RMB expects inflation to slow to an average rate of 14 percent in 2017 and 9,7 percent in 2018.
The figure is projected to drop to 7 percent in 2019 supported by fiscal and monetary tightening.
However, given Nigeria’s reliance on imports of raw materials, refined products and consumer goods, a sustained increase in global agricultural prices paired with a weaker naira will exaggerate the effect on goods inflation,” RMB stated.
According to the diversified financial firm, this should translate into higher real wage demands over the next three years as Nigerians seek to counter the negative wealth effect.
“Administered price increases, particularly fuel price hikes, present a further upside risk to our view.”
The forecast by RMB coincided with members of the non-teaching staff of universities embarking on a five-work strike that began on Monday.
Labour Minister, Chris Ngige, late on Monday appealed on the workers to embrace the channels of dialogue already opened by the government.
CAJ News

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