National income, Deregulated economy, Nigeria


This paper examines the propriety of a national income policy in a deregulated economy. The literature indicates that various interest groups in the country tend to protect their narrow interests when negotiating for higher wages. Consequently, the goals of government to achieve equitable income distribution in the country with a national income policy are often at variance with the private interests. While congenial atmosphere for collective bargaining was deemed desirable for achieving effective income growth, an environment of consistently rising prices was considered an anticlimax to growth and development. Consequently, the paper opined that in a market economy, a national income policy that does not include elements of restraint on prices development was likely to fail. Thus, an income policy must be packaged as a set of comprehensive macroeconomic, monetary and fiscal policies for effective results. As part of the national income policy, an income guidepost with provision for periodic review is advocated.

Author Bio

M. K. Tule is a Staff of the Central Bank of NIgeria.

Publication Title

CBN Bullion







To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.