The minimum wage is intended to provide a safety net for low-income earners, ensuring they can afford basic necessities. However, the reality is that the purchasing power of minimum wage has been dwindling over the years.
In this article, we will examine how much petrol (PMS) one could buy with the minimum wage in Nigeria from 1999 to 2024, highlighting the alarming trend.
1999
In 1999, the minimum wage was ₦3,000, which could buy approximately 150 litres of petrol at twenty naira per litre. This seems like a decent amount, considering the average fuel consumption of a vehicle.
2000
By 2000, the minimum wage had risen to ₦7,500, allowing individuals to purchase around 341 litres of petrol. This increase in purchasing power is commendable, but it’s essential to consider the context of inflation and economic growth.
2011
Fast-forward to 2011, when the minimum wage was ₦18,000. Despite the increase in wage, the amount of petrol one could buy decreased to 277 litres at an average of 65 naira per litre. This marks the beginning of a concerning trend.
2019
In 2019, the minimum wage rose to ₦30,000, but the amount of petrol purchasable with it plummeted to 206 litres at an average price of 146 naira per litres. . This significant drop highlights the eroding purchasing power of minimum wage.
2024
As of 2024, the minimum wage stands at ₦70,000, yet the amount of petrol one can buy has dwindled to a mere 93 litres. This staggering decrease raises serious concerns about the ability of low-income earners to afford basic necessities.
Conclusion
The data paints a disheartening picture of the shrinking power of minimum wage in Nigeria. As the cost of living continues to rise, the purchasing power of minimum wage has failed to keep pace.
This trend has far-reaching implications for the well-being of low-income earners and the overall economy. It’s crucial for policymakers to reassess the minimum wage and implement measures to ensure it keeps pace with inflation and economic growth.
