Nigeria’s federal minimum wage moves to N70,000 per month. Yes, the government has approved a new minimum wage of N70,000 for Nigerian workers, with a commitment to review the national minimum wage law every three years.
While processing that, check how the Naira is doing: “The Nigerian Naira has experienced a significant devaluation, reaching an exchange rate of N1,600 to the US dollar in the parallel market as of July 18, 2024. The Central Bank of Nigeria (CBN) responded by announcing the sale of $20,000 to each Bureau de Change (BDC) at a rate of N1,450 per US dollar, aiming to stabilize the currency and control the exchange rate.”
If we use the official exchange rate, the new wage is about $50 per month. Sure, a small step to get workers some support, but we have a long way to go. Why? “As of January 1, 1981, the federal minimum wage in the United States was $3.35 per hour. In other words, the monthly wage was $536 using the typical 40 hours per week. In Nigeria then, using the 1981 exchange rate since the Naira was stronger than the US dollar, it was $2,491.35 (see Punch data below). Say it in another way, the monthly minimum wage in Nigeria in 1981 was $2,491.35!”
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This is to remind all of us that we have a long way to RECOVERY in Nigeria!
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