The All Progressives Congress (APC) is celebrating the Nigerian government’s decision as they approve a minimum wage of N70,000 per month, with party leaders praising the new policy as a notable accomplishment.
When converted to US dollars using the official exchange rate on Friday, the Nigerian government’s new minimum wage of N70,000 equates to a meager $44.2 per month, far from the amount needed to meet the cost of living in the country. With inflation pushing the price of basic necessities higher and higher, many Nigerian workers find themselves in an increasingly desperate situation, struggling to make ends meet.
With N70,000 as the new minimum wage in Nigeria, it’s sobering to consider the true cost of basic food items like rice and yams in the South East. At current prices, a 50kg bag of rice can set a family back by as much as N92,000, and a single tuber of yam could cost anywhere from N7,000 to N12,000, a far cry from the minimum wage, even without considering other necessities like transportation, healthcare, and shelter.
The devaluation of the Nigerian naira has had a devastating impact on workers, undermining the effectiveness of the newly approved minimum wage. The NFEM reports reveal that the value of the naira has been steadily eroding, meaning that despite the increase in the minimum wage, workers are finding themselves unable to afford even the most basic necessities. With inflation and a depreciating currency working against them, the struggle for Nigerian workers to make ends meet is growing more challenging by the day.
On July 18th, the Nigerian naira reached a historic low against the US dollar in the parallel market, with a staggering exchange rate of N1,600 to $1. In response, the Central Bank of Nigeria announced a significant intervention, selling $20,000 at a more favorable rate of N1,450 to the US dollar, to each BDC. Despite this intervention, many Nigerians still struggle with a rapidly depreciating currency, creating an uphill battle for workers trying to make ends meet.
However, while the CBN’s intentions were laudable, the delay in approving the minimum wage has had a severe impact on Nigerian workers. When negotiations on the new minimum wage began just four months ago, a 50kg bag of rice could be purchased for N50,000, a far cry from the N92,000 it costs today.
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