By Ismail Namadi
In 2014, $1 was equivalent to ₦200. At that time, one bag of 50kg rice was around ₦8,000 ($40), and the minimum wage was N18,000 ($90).
Comparably, in January 2024 (10 years apart), $1 is around ₦1,500. The Minimum wage is ₦30,000. A simple calculation is 18000/200 = $90; 30,000/1,500 = $20.
What does this simple calculation mean? In real terms, over the past ten years, despite the increase in the minimum wage from ₦18,000 to ₦30,000 per month, purchasing power has decreased by over 75%.
However, in 2014, the PMS pump price per litre was 87 Naira, while the current price in 2024 is ₦700 per litre.
The Nigerian budget in 2014 was ₦4.962 trillion, while in 2024, the budget is ₦28.77 trillion. These variables are paramount when considering minimum wage simply because they directly affect the lives of people in the country.
For example, the federal government removed the subsidy on petroleum products, which led to a skyrocketing price of general goods and services, making the lives of citizens, especially low-income earners, difficult to manage.
In addition, the dollar plays a significant role in our economy because we depend on foreign importation for consumable goods. The dollar is the only legal tender that we use to patronize foreign goods.
My advice to the federal government is that when it decides to review the minimum wage, it should consider the purchasing power of the naira so that the standard of living of Nigerian workers is improved.
Ismail Namadi wrote from Paderborn, Germany, via Ismailnamadi2006@gmail.com.
The Nigeria government are not on the process that improve citizens life, the only goes through the influence of Global economy