In every nook and cranny of Nigeria, a harsh truth persists: millions are grappling with financial hardships. The 2024 report from the World Poverty Clock paints a grim reality, with a staggering 70.9 million Nigerians plunged into extreme poverty. This struggle exacerbates amid Nigeria’s economic woes, marked by soaring costs of living and stagnant wages.
Since its raise from N18,000 in 2011 to N30,000 in 2019, Nigeria’s minimum wage has remained unchanged at N30,000 per month up to March 16, 2024. However, the prices of essential goods have increased dramatically, with some commodities witnessing a staggering hike of 400% to 600% over the past five years.
Recent data from the National Bureau of Statistics (NBS) shed light on the severity of the situation. By February 2024, the headline inflation rate soared to 31.7%, up from 29.9% the previous month. Meanwhile, food inflation spiked to 37.92% in January 2024, adding further strain on households nationwide.
State-by-State Analysis
A detailed examination of essential item affordability across different Nigerian states (as of January 2024) reveals a varied landscape:
In Abuja, the capital city, the average price of 1kg of rice stands at N1,350, whereas in Benue State, it’s notably lower at N800.64. The cost of boneless beef ranges from N4,000 in Abuja to N2,639 in Gombe State.
Akwa Ibom State records the highest average price of 1kg of brown beans at N1,466.67, while Adamawa State reports the lowest at N677.23. Rivers State tops the list for the average price of 1kg of onion bulb at N1,454.09, whereas Zamfara State registers the lowest at N435.71.
Delta State sees the highest average price for 1kg of tomato at N1,474.79, contrasting with Kano State’s lowest average price of N422.7.
An analysis based on Nigeria’s six geo-political zones sheds light on the minimum wage’s purchasing power:
In Rivers State (South-South), N30,000 can buy 23 loaves of sliced bread (500g), whereas in Adamawa State (North-East), it translates to 51 yam tubers. In Lagos State (South-West), N30,000 can fetch 17.5 kilograms of broken rice, also known as Ofada.
Kogi State (North-Central) offers the best deal for groundnut oil, with the minimum wage affording 24 bottles, whereas in Akwa Ibom State (South-South), it can purchase 27 bottles of palm oil.
Despite these variations, the minimum wage often falls short of providing sufficient purchasing power for basic necessities in many regions.
While many Nigerians struggle to make ends meet, a sharp contrast exists in the realm of luxury. For instance, civil servants in Kebbi State would need to save for 230 years to afford a new Toyota sports utility vehicle (SUV).
Recent reports unveiled that the Governor of Kebbi State presented these luxury vehicles, each valued at N85 million, to all 24 members of the Kebbi State House of Assembly. This extravagant spending underscores the vast gap between the economic realities faced by ordinary citizens and the indulgences enjoyed by the political elite.
Despite periodic increases in the minimum wage over the years, the current rate fails to alleviate the financial burdens faced by many citizens. Moreover, challenges persist at the state level, with some regions struggling to meet even the existing minimum wage obligations.
The Nigeria Labour Congress (NLC) has persistently advocated for a significant increase in the minimum wage, proposing figures ranging from N100,000 to N200,000 per month. These calls reflect the urgent need to bridge the widening gap between wages and the cost of living.
As protests echo across the nation and inflationary pressures escalate, the need for decisive action becomes increasingly urgent. Without meaningful intervention, Nigeria risks exacerbating the financial hardships endured by its populace, underscoring the necessity for comprehensive reforms to foster economic stability and prosperity.
