POSITIVE IMPACT OF MINIMUM WAGE ON THE STANDARD

OF LIVING OF THE PEOPLE

(A CASE STUDY OF SELECTED COMMUNITIES IN ORON NATION)

TABLE OF CONTENTS
PAGES
Title Page - - - - - - - - -
Approval Page - - - - - - - -
Certification - - - - - - - -
Dedication - - - - - - - - -
Acknowledgements - - - - - - -
Abstract - - - - - - - - -
List of Tables - - - - - - - -
Table of Contents - - - - - - -

CHAPTER ONE
INTRODUCTION
1.1 Background of the Study - - - - -
1.2 Statement of the Problem - - - - -
1.3 Objectives of the Study - - - - -
1.4 Research Questions - - - - - -
1.5 Significance of the Study - - - - -
1.6 Scope of the Study - - - - - -
1.7 Limitations of the Study - - - - -
1.8 Organization of the Study - - - - -
1.9 Definition of Terms - - - - - -

CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework
2.1.1 Concept of Minimum Wage
2.1.2 Impact of minimum wage on income of the people
2.1.3 Impact of minimum wage on gross domestic product (GDP) of the people
2.1.4 Impact of minimum wage on life expectancy of the people
2.1.5 Impact of minimum wage on economic opportunity of the people
2.1.6 Importance of Minimum Wage on the standard of living of the people
2.1.7 Effect of Minimum Wage on the standard of living of the people
2.2 Theoretical Framework
2.3 Empirical Framework

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Research Design - - - - - - -
3.2 Population of the Study - - - - -
3.3 Sampling Technique - - - -
3.4 Sample Size
3.5 Instrumentation - - - - - - -
3.6 Method of Data Analysis - - - - - -
3.7 Problems of Data Collection - - - - -

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Analysis of Research Questions - - - -
4.1.1 Research Question One - - - - -
4.1.2 Research Question Two - - - - -
4.1.3 Research Question Three - - - - -
4.1.4 Research Question Four - - - - -
4.2 Discussion of Findings - - - - -

CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATION
5.1 Summary of Findings - - - - - -
5.2 Conclusion - - - - - - - -
5.3 Recommendations - - - - - -
References
Appendix I
Appendix II
Chart Analysis

CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Wage determination involves an evaluation of the contributions of employees in order
to distribute fairly direct and indirect, monetary and non-monetary rewards within an
organization’s ability, pay and legal regulations. The minimum wage legislation is a very
important criterion in the payment of wages. The fixing of minimum wage prevents the
exploitation of weak, ill-informed or isolated groups of individuals. Minimum wage affords such
people a more comprehensive protection than is available through existing voluntary
bargaining machinery. Minimum wage is a universal practice. It is practiced in countries across
the globe. The International Labour Organization (ILO) (2008) affirms that presently, there is
legislation or binding collective bargaining regarding minimum wage in more than 90% of
countries of the world. One argument is that the fixing of minimum wage affords workers a
reasonable income to meet their basic needs and to raise their standards of living. Another
argument is that by the introduction of minimum wage, employers are not only hindered from
using unreasonably cheap labour; they are encouraged to use human resources more
efficiently and therefore, raise productivity. However the success of minimum wage in its
intended goal will depend on the level at which it is fixed. The International Labour
 Organization (ILO) (2009) observes that ultimately, the impact and usefulness of a minimum
wage policy depends on whether minimum wages are paid. This in turn depends on the
effectiveness of the enforcement mechanisms. Penalties for violators, adequate compensation
for workers whose rights have been violated and suitable resourcing of the enforcement
authority are all crucial factors that hinders minimum wage enforcement, the active
involvement of social partners in both the design and operation of minimum wage
enforcement regimes is essential to enhance its impact. Income policy is usually also used as a
principal component of welfare boosting and poverty reduction macroeconomic policy frame
work in Nigeria, and minimum wage legislation is a major income policy readily employed in
this regard. Although, it has both negative and positive effects on the overall economy, policy
makers, especially the politicians have used the fixing of minimum wage more often for
political rather than socio-economic reasons.
Minimum wage legislations in the country have been preceded by high inflation rates
that actually erode purchasing power and bring reduction in welfare. As a result, minimum
wage legislation, which normally leads to a rise in nominal wage, is justified as a means of
adjusting wages and salaries to match the rise in cost of living. However, Ojo (2018) and
Owoye (2014) opine that wage increases are always followed by threats of reduction in
government and private workforce, and in some cases, such threats have resulted in massive
lay-offs in the civil service. Besides, minimum wage increases in Nigeria do not match up with
the rate of increases in prices which resultantly leads to agitations from labour unions for
persistent wages and salaries increase.
Base on this, thus, this research is concerned on the effect of the new minimum wage
on motivating Akwa Ibom state Civil Servants for higher productivity: A case of Akwa Ibom
state Ministry of Works and Transport.

1.2 Statement of the Problem

In every organization, there is always a need to determine its goals, objectives and
values. Therefore, the human resource unit of every organization must strive to select the
right individuals, train them and establish appropriate working system. Challenges ranging
from how to determine the motivation measure or employ system necessary to ensure that
they clarify the type of behaviour the organization wants from its employees at a particular
time that translate to optimum productivity is yet to be resolved.
Civil servants in the Akwa-Ibom State civil service seem to be indifferent about work
and that is another problem. Most of them go to work late, while some absence their duty
posts for many days engaging themselves in some other businesses which they believe will
bring added profit. This behaviour stems from the fact that their salaries and other benefits
are not paid as at when due.
Thus this study is carried out to examine the Positive Impact of Minimum Wage on the
Standard of Living of the People.

1.3 Objectives of the Study

The general objective of this study was to examine Positive Impact of Minimum Wage
on the Standard Of Living of the People, other specific objectives were:
1. To find out the impact of minimum wage on income of the people.
2. To find out the impact of minimum wage on gross domestic product (GDP) of the people.
3. To find out the impact of minimum wage on life expectancy of the people.
4. To find out the impact of minimum wage on economic opportunity of the people.

1.4 Research Questions

1. What is the impact of minimum wage on income of the people?
2. What is the impact of minimum wage on gross domestic product (GDP) of the people?
3. What is the impact of minimum wage on life expectancy of the people?
4. What is the impact of minimum wage on economic opportunity of the people?

1.5 Significance of the Study

It is intended that the result of this study will help the civil servant to acquire
knowledge which will be useful to them in terms of knowing the new minimum wage benefits.
It will also give the general public the insight and ability to know the effects the new
minimum wage is having on the civil servants.
It will help the Federal Government to benchmark international standards.
It will serve as enlightenment to both private and public sectors of the economy, that
job satisfaction and improvement in basic living condition will motivate employees for higher
productivity.
It will serve as a very useful material for further research on similar topic.

1.6 Scope of the Study

The study focused on Positive Impact of Minimum Wage on the Standard of Living of
the People, using selected communities in Oron nation as a case study.

1.7 Limitations of the Study

During the course of this study, a lot of constraints were encountered:
The limitations of this study are as follows:
 Financial Factor: Inadequate fund affected the way data was been collected since the
researcher travelled a long distance for the distribution of the questionnaire forms.
 Time Factor: This affected the reduction in the size of the sample used for the study because
the researcher had only less than one month to complete the study.
 Material Factor: Shortage of material for literature review posed a great difficulty.
 Inability to retrieve the entire questionnaire for good representation used for the anticipated
sample.

1.8 Organization of the Study

This study is divided into five (5) chapters there are:
Chapter One: This chapter focused on the general overview of the study. It also provide the
background of the study, statement of the problem, objectives of the study, research
questions, significance of the study, scope of the study, limitations of the study, organization
of the study and definition of terms.
Chapter Two: This chapter centred on the review of the related literature which covered
conceptual framework, theoretical framework and empirical framework.
Chapter Three: This chapter focused on research design and methodology, it indicates
research design, population of the study, sample and sampling technique instrumentation and
method of data analysis and problems of data collection.
Chapter Four: This chapter focused on data presentation, analysis and interpretation as well
as discussion of findings.
Chapter Five: This chapter presents the summary of findings conclusion and
recommendations of study.

1.9 Definition of Terms

Civil Servant: This is a person who works in the Civil Service.
Civil Service: This is a regulatory body that directs, supervises and regulates the activities of
trained civil servants in Nigeria.
Effect: This has to a change or changed state occurring as a direct result of action by
somebody or something else
Minimum Wage: This is the lowest wage that an employer is expected to pay by law.
Motivation: This is the cause of an organism's behaviour, or the reason that an organism
carries out some activity.
Productivity: This is defined as the ratio of production output to what is required to produce
it (input) labour, equipment, and capital.

CHAPTER TWO
REVIEW OF RELATED LITERATURE
This chapter deals with the review of related literature; it is reviewed under the following
headings;
 Conceptual framework
 Theoretical framework
 Empirical review

2.1 Conceptual Framework

2.1.1 Concept of Minimum Wage
Minimum wage can simply be defined as the smallest hourly wage that an employee
may be paid as mandated by Federal Law. Inflation and other factors necessitate periodic
adjustments of the actual amount of minimum wage. The Cain Labour Standard Act of 1938 in
the United State of America (USA) defines minimum wage as the minimum hourly rate of
compensation for labour as established by federal statute and refined by employers engaged
in businesses that affect interstate commerce. It may also be defined as the rate of pay fixed
either by a collective bargaining agreement or by governmental enactment as the lowest wage
payable to specified categories of employees. The committee of experts in the International
Labour Organization (ILO) 1996 General Survey of Reports relating to Convention No. 131 on
minimum wage fixing explains that minimum wage may be understood to mean the minimum
sum payable to a worker for work performed or services rendered within a given period,
whether calculated on the basis of time or output, which may not be reduced either by
individual or collective agreement, which is guaranteed by law and which may be fixed in such
a way as to cover the minimum need of the worker and his/her family, in the light of national
economic and social conditions. Earlier in 1967, the International Labour Organization (ILO)
meeting of experts on minimum wage fixing and related problems had explained that the
concept of the minimum wage contains three basic ideas. The first is that, the minimum wage
is the wage considered sufficient to satisfy the vital necessities of food, clothing, housing,
education and recreation of the workers, taking into account the economic and cultural
development of each country. The second is that minimum wage represents the lowest level of
remuneration permitted, in law or fact, whatever the method of remuneration or the
qualification of the worker. Third is that the minimum wage is the wage which each country
has the force of law to uphold and which is enforceable under threat of penal or other
appropriate sanctions. It further notes that minimum wage fixed by collective agreements
made binding by public authorities is included in the above explanation.
The establishment of a minimum wage system is a means of ensuring that workers
(and in some cases, their families) will receive a basic minimum wage which will enable them
to meet their needs; hence the frequent use of the term ‘minimum living wage’. Efforts to
implement such a concept imply an attitude or a policy which aims at improving the material
situation of workers and guaranteeing them a basic minimum standard of living which is
compatible with human dignity. Minimum wages constitute a level which may not be undercut,
and whose application is guaranteed by law. It excludes certain bonuses or benefits and is
payable, in cash or in kind, directly or indirectly by the employer to the worker for work
performed by the latter. In addition, it often does not apply to certain types of workers (e.g.
those working less than a certain number of hours) or to certain activities.

2.1.2 Impact of minimum wage on income of the people

Wages increase is aimed at placing the workers in a favourable economic position by
increasing their purchasing power in order to surmount their economic problems arising from high
cost of consumer goods which has eroded the value of their wages. The prices of goods and
services are sky-rocketing. Little wonder therefore, that workers wages are not able to absolve
the gargantuan costs of living. The fixing of minimum wage prevents the exploitation of weak, ill-
informed or isolated groups of individuals. Minimum wage affords such people a more
comprehensive protection than is available through existing voluntary bargaining machinery
(Fapohunda, 2013). Another argument is that by the introduction of Minimum Wage employers
are not only hindered from using unreasonably cheap labour, they are encouraged to use human
resources more effectively and therefore, raise productivity. The issue of minimum wage has
assumed an intractable dimension. As a result, it gave birth to four district conventions at the
international labour organisation, the conventions variously adopted in 1928, 1949, 1951 and
1970. All the essence was to strengthen the minimum wage and devising procedures for fixing,
reviewing and also avoiding necessary legalistic ambiguity (Ratnam, 2006). There are dissenting
views among scholars, researchers and policy makers on the impact of minimum wage on the
citizenry. Their arguments resolve around employment, income distribution and wage stability.
For instance, Stigler (2014) observed that the minimum can have a positive impact on
employment.
According to Mario, Claude and Alvan (2010), economists believe that on the long-run, the
minimum wage can have a negative impact on employment. In a developing economy such as
Nigeria’s, the employer has a significant market power and is able to control the wage that he
pays. A legal imposition of the minimum wage may increase the level of employment (Mario, et
al, 2010). The employer has the monopoly power to pay wages below workers productivity. In a
situation where the government increases the wage paid (but not above productivity), the
employer still has the incentive to keep the worker. Ultimately, the sign of the impact of the
minimum wage on employment is an empirical question. The minimum wage has a political
dimension. The main political goal of the minimum wage is to redistribute income to low-paid
workers. As a supplement to the conventions, the international Labour Organization has also
passed recommendations to help explain. In one such recommendation, Prasad (1970),
addressed particularly developing countries that minimum wage system is meant to and should
be an effective instrument of social protection and an element in the strategy of economic and
social development. For clarity, the body further emphasized that minimum wage fixing should
constitute one element in a policy designed by nations to overcome poverty and to ensure the
satisfaction of the needs of all workers and families (Ratman, 2006).

2.1.3 Impact of minimum wage on gross domestic product (GDP) of the people
Minimum wage increases may increase labor costs and output prices, reduce firms’ profits
and job training, and cause adverse employment and hours effects, each of which may reduce in
GDP. However, if minimum wage increases raise the earnings of low-skilled workers who keep
their jobs—and these workers have a higher marginal propensity to consume an additional dollar
of income than firm owners or low-skilled workers who lose their jobs—minimum wage increases
will result in higher GDP [3]. Moreover, adverse employment effects may have the unintended
consequence of leading to greater economic growth if low-skilled workers who lose their jobs take
up job training or increase schooling, or if firms substitute toward higher-skilled workers.
Additionally, if local labor markets have only one employer (monopsony), there is even scope for
minimum wage increases to increase employment. Finally, minimum wage increases may increase
worker effort, either in an efficiency wage framework (i.e. where workers are paid more to
encourage higher output and raise morale), or because those who retain jobs increase their
efforts in order to forestall competition from those who have been laid off.

2.1.4 Impact of minimum wage on life expectancy of the people

Minimum wage is a universal practice. It is practiced in countries across the globe. The
International Labour Organization (ILO) (2008) affirms that presently, there is legislation or
binding collective bargaining regarding minimum wage in more than 90% of countries of the
world. One argument is that the fixing of minimum wage affords workers a reasonable income
to meet their basic needs and to raise their standards of living. Another argument is that by
the introduction of minimum wage, employers are not only hindered from using unreasonably
cheap labour; they are encouraged to use human resources more efficiently and therefore,
raise productivity. However the success of minimum wage in its intended goal will depend on
the level at which it is fixed. The International Labour Organization (ILO) (2009) observes that
ultimately, the impact and usefulness of a minimum wage policy depends on whether
minimum wages are paid. This in turn depends on the effectiveness of the enforcement
mechanisms. Penalties for violators, adequate compensation for workers whose rights have
been violated and suitable resourcing of the enforcement authority are all crucial factors that
hinders minimum wage enforcement, the active involvement of social partners in both the
design and operation of minimum wage enforcement regimes is essential to enhance its
impact. Income policy is usually also used as a principal component of welfare boosting and
poverty reduction macroeconomic policy frame work in Nigeria, and minimum wage legislation
is a major income policy readily employed in this regard. Although, it has both negative and
positive effects on the overall economy, policy makers, especially the politicians have used the
fixing of minimum wage more often for political rather than socio-economic reasons.
Minimum wage legislations in the country have been preceded by high inflation rates
that actually erode purchasing power and bring reduction in welfare. As a result, minimum
wage legislation, which normally leads to a rise in nominal wage, is justified as a means of
adjusting wages and salaries to match the rise in cost of living. However, Ojo (2018) and
Owoye (2014) opine that wage increases are always followed by threats of reduction in
government and private workforce, and in some cases, such threats have resulted in massive
lay-offs in the civil service. Besides, minimum wage increases in Nigeria do not match up with
the rate of increases in prices which resultantly leads to agitations from labour unions for
persistent wages and salaries increase.

2.1.5 Impact of minimum wage on economic opportunity of the people

Economic growth alone does not necessarily translate into more and better jobs,
especially for the poor, vulnerable and those at risk of being left behind. Economic growth is a
prerequisite for increasing productive employment; it is the combined result of increases in
employment and increases in labour productivity. Hence, the rate of economic growth sets the
absolute ceiling within which growth in employment and growth in labour productivity can take
place. However, the pattern or nature of growth matters, too. The impact of economic growth
on productive employment creation depends not only on the rate of growth, but also on the
efficiency by which growth translates into productive jobs. The latter depends on a range of
factors, such as the sector composition of growth and the capital/labour intensity of growth
within the individual sectors. There is usually a need to increase both the number of jobs and
the productivity as well as incomes from employment. A review of economic development from
an employment perspective should therefore assess to what extent economic growth has met
the need for more jobs and for higher productivity/incomes. Such an assessment needs to be
broken down by economic sectors to yield meaningful insights. The extent to which economic
growth is associated with and driven by a productive transformation is of major importance to
the sustainability of economic development in the medium and long term.
The establishment of a minimum wage system is a means of ensuring that workers
(and in some cases, their families) will receive a basic minimum wage which will enable them
to meet their needs; hence the frequent use of the term ‘minimum living wage’. Efforts to
implement such a concept imply an attitude or a policy which aims at improving the material
situation of workers and guaranteeing them a basic minimum standard of living which is
compatible with human dignity. Minimum wages constitute a level which may not be undercut,
and whose application is guaranteed by law. It excludes certain bonuses or benefits and is
payable, in cash or in kind, directly or indirectly by the employer to the worker for work
performed by the latter. In addition, it often does not apply to certain types of workers (e.g.
those working less than a certain number of hours) or to certain activities.

2.1.6 Importance of Minimum Wage on the standard of living of the people

Recent studies have shown that minimum wages not only help to reduce wage
dispersion and to channel productivity gains into higher wages, but they also can contribute to
higher labour productivity. The following are the importance of minimum wage:
(a) Workers can be more motivated
A large number of experimental studies have supported the hypothesis formulated by
Akerlof (2012), that employees consistently provide higher effort levels in response to higher
wages.
(b) There can be more productivity-enhancing
Another area that has been increasingly researched in recent years is the link between
minimum wages and reduced turnover, i.e. the flow of workers in and out of jobs (or the rate
of employee separations and hires).
(c) Some firms can become more efficient
Researchers have pointed out that productivity increases may be the result of a fall in
employment due to the minimum wage, as enterprises substitute capital for labour and adopt
more capital-intensive production technologies. While this remains a distinct possibility when
the minimum wage is set too high, the emerging trend is that the effects of minimum wages
on employment are often small or insignificant, and in some cases positive (Kuddo, 2015).
(d) There can be increased efficiency at the macro level
At the macro-economic level, it has been observed that minimum wages may prompt
low-productivity firms to leave the market and higher-productivity firms to expand – thereby
raising overall efficiency of the economy.
(e) Minimum wage also helps families
Most of the minimum wage earners are married couple raising children. Without a
minimum wage, these workers may be forced to work for less money which will not be enough
to cater for their family needs. So, therefore, minimum wage helps families to cater for their
immediate needs.
(f) Reduces Tax Burden
A person making at least minimum wage is not using as many public services as
someone on unemployment. With minimum wage, the need for public assistance is lowered
and this reduces the tax burden on the community and the state.
(i) Employment Incentive
A minimum wage gives an unemployed person incentive to take a job because he
knows what his minimum pay will be, according to economics website Economics Help. An
unemployed person can compare the money he gets from public assistance and compare it to
the minimum wage to determine the financial incentive to taking a job.
(J) Business Budgets
Without a minimum wage, it can be difficult for small businesses to budget their money.
With a minimum wage in place, a small business owner knows what he will be expected to pay
per hour and he can create new jobs with his company based on this budgeting information.
(k) Common Reference
The minimum wage makes the hiring process easier for young or unskilled workers and
employers. The worker knows upfront what kind of wage she can expect, and the employer
does not have to go through the process of negotiating a wage with a new employee.

2.1.7 Effect of Minimum Wage on the standard of living of the people

Along with perception, personality, attitudes and learning, motivation is a important
way of understanding workers behavior in the civil service or any organization. A reasonable
minimum wage is a good motivation techniques. Luthan (2018) asserts that motivation should
not be thought of as the only explanation of behavior, since it interacts with and acts in
conjunction with other mediating process and with the environment. Evans (2018) states that
many recent theories of organizational behavior find it important for the field to re-emphasize
behavior. Definitions of motivation abound. One thing these definitions have in common is the
inclusion of words such as desire, want, aim, goal, needs, and incentives. Luthan (2016)
defines motivation as “a process that starts with a physiological deficiency or need that
activates a behavior or a drive that is aimed at a goal incentive”. Therefore, the key to
understand the process of motivation lies in the meaning of, and relationship among needs,
drives, and incentives. Specific employees’ attitudes relating to job satisfaction and
organization commitment are of major interest to the field of organizational behavior and the
practice of human resources management. Attitudes have direct impact on job satisfaction.
Organizations’ commitment on the other hand focuses on their attitudes towards the entire
organization. Although, a strong relationship between minimum wage and commitment has
been found, more recent research gives more supports to the idea that minimum wage as a
commitment causes satisfaction among the civil servants. However, most studies treat
satisfaction and commitment differently, especially in light of things like downsizing that are
part of modern organizations.
Managers and management researchers have long believed that organizational goals
are unattainable without the enduring commitment of members of the organizations.
Motivation is a human psychological characteristic that contributes to factors that cause
channel and sustain human behavior in a particular committed direction. Stoke, in Adeyemo
(2019) goes on to say that there are basic assumptions of motivation practiced by managers
which must be understood. First, that motivation is commonly assumed to be a good thing.
One cannot feel very good about oneself if one is not motivated. Second, motivation is one of
several factors that goes into a person’s performance (e.g. as a librarian). Factors such as
ability, resources and conditions under which one performs are also important. Third,
managers and researchers alike assume that motivation is in short supply and in need of
periodic replenishment. Fourth, motivation is a tool with which managers can use in
organization. If managers do not drive the people working for them, they can tailor job
assignments and rewards to what makes people “tick”. Motivation can also be conceived of as
whatever it takes to encourage workers to perform by fulfilling or appealing to their needs. To
Olajide (2000), “it is goal directed, and therefore cannot be outside the goals of any
organization whether public, private or non-profit.”

2.2 Theoretical Framework

2.2.1 Green growth theory
The theory of “green growth” was propounded by Jacobs (2012), it is a recent and
emerging theory in the international political system. Although the green growth just recently
surged into the international arena in 2008 it has already become a popular concept amidst
international actors (Jacobs, 2012). With the emergence of adverse impacts of climate change
on the global community any concept, framework or theory to help curb and contain the
impacts of climate change is given utmost attention. It is said that green growth emerged
from the environmental economists (Jacobs, 2012). The main assertion of green growth is that
there can be economic growth while reducing significantly the environmental impacts.
The aim of green growth is to integrate economic and environmental pillars into the
core of development plans in countries. That is, green growth describes a developmental path
that involves the usage of natural resources in a sustainable manner while growing
economically. Green growth is about economic growth that is green and clean. Hallegatte et
al. (2011) described green growth as that economic path that seeks economic growth and
development while simultaneously preserving the environment, climate, biodiversity and
natural resources.
Green growth expresses the shift from the status quo. As opposed to the traditional
growth model, the green growth emphasizes eco-friendly growth model. In most developing
nations, green growth is faced with the obstacle of finance and lack of commitment by the
government. Green growth emphasizes the role that the government has to play in fostering
it. This includes a reorientation in development paths adopted by that nation. Green growth
can help achieve economic growth while protecting the environment and resources which is a
better way of developing. Green growth argues that protection of the environment can actually
lead to better growth in all other aspects.
According to Jacobs (2012), the green growth theory consists of two claim which are:
first, the cost involved in addressing environmental issues is not so high that it will disrupt a
good economy and reduce it to zero and second, if these issues are not addressed the cost of
addressing them while growing the economy will be worse. Also, the green growth theory
posits that policies aimed at making an economy green can yield higher output and increase
the standard of living of the population.

2.2.2 Economic Theory

For the purpose of this research work, the green growth theory was used in other to
provide a deep understanding of the reasoning which this research work was based upon. The
green growth theory drives home the stance with which this research work takes. This theory
infuses the idea of a carbon-free and green economy which is what this research work has
tried to argue for. The emphasis on the protection of the environment whilst developing
economically was given by this theory. It argues that the environment is a strong pillar in the
move towards development. Development can occur without the degradation of the
environment. It is better to put into consideration the environment while carrying out
economic activities as it is easier to minimise the impacts on the environment. This also helps
avoid the excess cost that can be incurred while trying to fix the damage that has been done
to the environment.
The contents of the green growth theory if implemented into the Nigerian system it can
provide an affordable means of transitioning into a Low Carbon Economy. The infusion of the
sustainability of the environment into all development plans will provide an easier and
affordable means of developing while at the same time ensuring that the natural resources
and the environment are protected. Policies that are aimed at making the economy green will
increase the output and standard of living of the population of the environment. Although
Nigeria to an extent has some green policies in some of its development plans, it is not being
actualized. It is important that all policies or development plans at all the sectors of the
economy have a strong element of greening in it.

2.3 Empirical Framework

Ekoi (2019) conducted a study on the impact of the National Minimum wage on the
socio-economic characteristics of low income workers in Calabar Municipal Council Area of
Cross River State, Nigeria. Ex post facto research design was adopted for the study. A random
sample was conducted to select 305 respondents across government ministries, departments,
agencies and parastatals. The study utilized two theoretical frameworks: Relative Deprivation
Theory and Public Interest Theory. The major instrument of data collection was questionnaire
structured to reflect Likert Scale with 25 items. Data collated were analysed using mean
statistics. Hypotheses test statistics was Pearson Product Moment Correlation coefficient. The
results show that The National Minimum Wage has not significantly impacted on poverty,
employment, income stability and saving of lowwage earners in the public sector. The results
provide empirical evidence to support theoretical expectations and existing research findings in
socio-economic literature. Based on the findings, it was recommended that public– private
partnership should formulate policies and programmes to alleviate the burden of poverty
among the citizens for the betterment of the society..