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Nigerians earn N16 trillion as salary and wages in 2017 up 11%

In 2017, Compensation of Employees stood at N16.03 trillion growing by 11.14% in real terms.

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How to Calculate Deductions for the Employee Compensation Scheme

Data from the National Bureau of Statistics indicate Compensation of Employees in Nigeria stood at N16.03 trillion growing by 11.14% in real terms, the first positive year on year annual growth rate recorded since 2015.

This was contained in the recently released Gross Domestic Product (GDP) by Income and Expenditure Approach for 2017. The report combines the data for all the four quarters in 2017 and shows that workers remuneration increased by 11.14% in 2017.

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Compensation of Employees (Wages and Salaries)

This consists of the total remuneration of employees in the formal sector, including both wages and salaries, and benefits in kind (such as pensions). In 2017, Employee Compensation rose nominally to N29.9 trillion from N25.8 trillion in 2016. Employee compensation was N24.7 trillion in 2015 on nominal terms.

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In real terms (after adjusting for inflation), this represents a growth rate of about 11.14% between 2017 and 2016, the first positive year on year annual growth rate recorded since 2015. In 2016, compensation of employees in real terms declined by 9.68% year on year. It expanded steadily throughout 2017 with year on year growth rates reaching double digits from the second through fourth quarters of the year.

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The data reflects a much better economy witnessed in 2017 when compared to 2016 when Nigeria was neck deep in a recession.

What does this mean?

  • Nigerians earned more in nominal and real terms in 2017 compared to 2016. This suggests there is more money available for Nigerians to spend compared in 2016.
  • Nigeria exited recession in the second quarter of 2017 as economic activities picked up following 6 quarters of negative growth. The economic recession meant several employees lost jobs or saw their wages decrease in nominal and real terms as employers reduce expenses to stay afloat.
  • Labour force participation as at the second quarter of 2017 was 85 million out of which about 51 million were categorized as having full employment. As at the end of 2016 labour force participation was 81 million while those in full employment was about 52.5 million.
  • Despite the rise in employee salaries and wages in 2017, the over 48% decline in the exchange rate between 2014 and 2017 has basically halved the purchasing power of Nigerians despite the rise in real terms.
  • Using an estimated population of 52 million, the data suggest average employee wages for 2017 was about N505k or N1,404 per day.

Nairametrics Research team tracks, collates, maintains and manages a rich database of macro-economic and micro-economic data from Nigeria and Africa. Our analysts share some of the data collated on Nairametrics, using formats such as docs, tables and charts etc. The team also publishes research based analysis as articles on a regular basis.

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Coronavirus

Covid-19 Update in Nigeria

On the 26th of May 2020, 276 new confirmed cases and 16 deaths were recorded in Nigeria bringing the total confirmed cases recorded in the country to 8,344.

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COVID-19: FCMB reschedule operations

The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to rise as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 8,344 confirmed cases.

On the 26th of May 2020, 276 new confirmed cases and 16 deaths were recorded in Nigeria.

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To date, 8344 cases have been confirmed, 2385 cases have been discharged and 249 deaths have been recorded in 34 states and the Federal Capital Territory having carried out 46,803 tests.

Covid-19 Case Updates- May 26th 2020

  • Total Number of Cases – 8,344
  • Total Number Discharged – 2,385
  • Total Deaths – 249
  • Total Tests Carried out – 46,803

The 276 new cases were reported from 15 states- Lagos (161), Rivers (36), Edo (27), Kaduna (19), Nasarawa (10), Oyo (6), Kano (4), Delta (3), Ebonyi (3), Gombe (2), Ogun (1), Ondo (1), Borno (1), Abia (1), Bauchi (1).

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

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The latest numbers bring Lagos state total confirmed cases to 3756, followed by Kano (923), Abuja at 519, Katsina (335), Borno (256), Oyo (250), Jigawa and Ogun (241), Bauchi (233), Edo (218), Kaduna (208),  Rivers (157), Gombe (150), Sokoto (116), Plateau (95).

Kwara State has recorded 79 cases, Zamfara (76), Nasarawa (56), Delta (49), Yobe (47), Osun (44), Ebonyi (36), Imo (33), Kebbi (32), Niger (28), Adamawa (27), Akwa Ibom and Ondo (24), Ekiti (20), Taraba and Enugu (18), Bayelsa (12), Anambra (10), Abia (8), while Benue state has recorded 5 cases.

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, President Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

 

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READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

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DateConfirmed caseNew casesTotal deathsNew deathsTotal recoveryActive casesCritical cases
May 26, 2020834427624916238557107
May 25, 202080682292337231155247
May 24, 202078393132265226353607
May 23, 202075262652210217451317
May 22, 2020726124522110200750337
May 21, 2020701633921111190748987
May 20, 202066772842008184046377
May 19, 202064012261921173444757
May 18, 202061752161919164443407
May 17, 202059593881826159441837
May 16, 202056211761765147239737
May 15, 202054452881713132039544
May 14, 202051621931683118038154
May 13, 202049711841646107037374
May 12, 20204787146158695936704
May 11, 202046412421521090235894
May 10, 202043992481421777834794
May 9, 202041512391271174532784
May 8, 202039123861181067931154
May 7, 20203526381108460128184
May 6, 20203145195104553425071
May 5, 2020295014899548123704
May 4, 2020280224594641722912
May 3, 2020255817088240020702
May 2, 20202388220861735119522
May 1, 20202170238691035117512
April 30, 2020193220459731715562
April 29, 2020172819652730713692
April 28, 2020153219545425512322
April 27, 20201337644102559942
April 26, 20201273914152399942
April 25, 20201182873632229252
April 24, 202010951143312088552
April 23, 20209811083231977532
April 22, 2020873912931976482
April 21, 20207821172631975602
April 20, 2020665382311884662
April 19, 2020627862221704362
April 18, 2020541482021663562
April 17, 2020493511841593172
April 16, 2020442351311522772
April 15, 2020407341211282672
April 14, 202037330111992632
April 13, 202034320100912422
April 12, 20203235100852282
April 11, 202031813103702382
April 10, 20203051770582402
April 9, 20202881471512302
April 8, 20202742260442262
April 7, 20202541661442042
April 6, 2020238650351982
April 5, 20202321851331942
April 4, 2020214540251850
April 3, 20202092542251800
April 2, 20201841020201620
April 1, 2020174352091630
March 31, 202013982091280
March 30, 2020131202181210
March 29, 2020111221031070
March 28, 20208919103850
March 27, 2020705103660
March 26, 20206514102620
March 25, 2020517102480
March 24, 2020444102410
March 23, 20204010112370
March 22, 2020308002280
March 21, 20202210001210
March 20, 2020124001110
March 19, 20208000170
March 18, 20208500170
March 17, 20203100030
March 16, 20202000020
March 15, 20202000020
March 14, 20202000020
March 13, 20202000020
March 12, 20202000020
March 11, 20202000020
March 10, 20202000020
March 9, 20202100020
March 8, 20201000010
March 7, 20201000010
March 6, 20201000010
March 5, 20201000010
March 4, 20201000010
March 3, 20201000010
March 2, 20201000010
March 1, 20201000010
February 29, 20201000010
February 28, 20201100010

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Business News

UPDATED: Nigeria received $5.85 billion capital inflows in Q1 2020 –NBS

Nigeria received $5.85 billion capital importation (inflows) in the first quarter (Q1) of 2020, compared to $8.51 billion in Q1 2019.

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capital, Foreign Reserves Rise by $295m in One month

Nigeria received $5.85 billion capital importation (inflows) in the first quarter (Q1) of 2020, as against $8.51 billion in Q1 2019. This is according to the latest capital importation report released by the National Bureau of Statistics (NBS).

According to the NBS, the $5.85 billion worth of capital importation in Q1 2020 represents an increase of 53.97% when compared to how much was received in Q4 2019.

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However, when compared to the corresponding first quarter period of 2019, the figure indicates a 31.19% decline.

READ ALSO: Nestle releases Q1 2020 result, administrative and distribution expenses drive down profits

Capital Inflow by type

In the first quarter of 2020, the largest amount of capital importation was received through portfolio investment, which accounted for 73.61% ($4.31 billion) of the total capital importation.

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Under the portfolio category, investment in money market instruments remains the largest recipient of capital inflows with a total of $3.44 billion, followed by $639.72 million in equity, while investment in bonds stood at $231.22 million.

Foreign Direct Investment (FDI): FDI constituted only 3.66% ($214.25 million) to the total capital inflows. A decline of 16.72% compared to $257.25 million received in Q4 2019 and 13.39% reduction compared to the corresponding quarter of 2019.

READ ALSO: Hike in VAT rate buoys VAT Revenue in Q1 2020

FDI is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.

Other Investments: other investments, which was broken down into four categories contributed 22.73% ($1.33 billion) to the total capital importation in the first quarter of 2020. The inflows through other investments reduced by 19.92% when compared to $1.66 billion received in Q4 2019.

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Investment through trade credits in the first quarter of 2020 was $50,000, Loans ($559.79 million), Currency deposits ($820,000) while other claims scooped the highest share of $769.99 million.

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READ MORE: Full text of President Muhammadu Buhari’s Letter to Nigerians

Capital inflows by Sectors

A further look into the report shows that the banking sector received the largest portion of capital importation as it constituted 51.08% ($2.99 billion) to the total capital inflows, followed by Financing, which received $1.33 billion (22.77%) in Q1 2020.

Shares followed with $817.38 billion (13.96%), Production $273.97 billion (4.68%) while Telecoms received $157.48 billion (2.69%).

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Capital inflows by origin

The United Kingdom remains the biggest source of capital investment in Nigeria. In Q1 2020, investment from the U.K amounted to $2.91 billion, up from $1.19 billion received in Q4 2019 and decline compared to $4.48 billion in Q1 2019.

The top five countries that accounted for the biggest capital inflows in Nigeria within the quarter include U.K ($2.91 billion), South Africa ($692.63 million), UAE ($532.89 million), Netherlands (441.79 million), and U.S ($389.1 million).

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Economy & Politics

Nigeria’s external reserves up by 7% in 21 days, currency speculators to lose over N10 billion 

It should be noted that Nigeria’s external reserves went on a downward slide last year, having lost $11.75 billion within a space of 10 months. 

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The continuous increase in Nigeria’s external reserves appears to have been sustained as it recorded a third consecutive week of growth at the end of last week. Available data from the Central Bank of Nigeria (CBN) show that the country’s external reserve had risen to about $35.77 billion as of May 21, 2020. 

Despite the volatility of the foreign exchange market due to decline in crude oil export earnings, the external reserves increased sharply by almost $1 billion in just 9 days, rising from the $34.78 billion that it recorded on May 12, 2020, to about $35.77 billion that it ended with on May 21, 2020. 

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Nigeria’s external reserves have been on a steady increase since April 29, 2020, when it stood at $33.42 billion. This represents an increase of about $2.35 billion or 7% in 21 days. 

READ ALSO: Forex crisis: Those patronizing parallel market will lose money – CBN Governor

It should be noted that Nigeria’s external reserves went on a downward slide last year, after hitting a peak of $45.17 billion on June 11, 2019, thereby losing $11.75 billion within a space of 10 months. 

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The recent gradual increase of the external reserves and improved liquidity in the foreign exchange market, thanks to the CBN, have helped to strengthen the naira at the Investors and Exporters (I&E) window. This was especially the case last week when the naira exchanged at N385.94 to a dollar from N386 to a dollar. 

Note that the improved liquidity in the foreign exchange market and the continuous increase in the country’s external reserves were also made possible by the recent disbursement of $3.4 billion emergency facility by the International Monetary Fund (IMF) to the CBN on May 6, 2020. The money was intended to help Nigeria mitigate the impact of the coronavirus pandemic. 

Recall that the naira has been under pressure against other major currencies, particularly the dollar, even as currency speculators have been making a lot of demands for dollars so as to make profits on future sales. 

READ ALSO: Nigeria’s currency stability persists at the expense of external reserves

Just last week, the CBN Governor, Godwin Emefiele, had to warn speculators and businesses to stop patronizing the parallel market operators. According to him, the rates they are buying dollar now are unrealistic and possibilities abound that they will lose their money if they continue to do so. It has been estimated that speculators could incur over N10 billion losses. 

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In the meantime, Governor Emefiele had promised more liquidity in the forex market, assuring that all genuine dollar demands by businesses and individuals will be met. This is coming against the backdrop of the planned resumption of dollar sales to the Bureau De Change Operators (BDC) by the CBN after almost 6 weeks that was suspended due to the lockdown occasioned by the coronavirus pandemic. The President of Association of Bureau De Change Operators (ABCON), Aminu Gwadebe, had pointed out that the return of the BDCs to the forex market will help chase away speculators, curb rising inflation, boost productivity and employment, enhance price discovery, enhance market transparency and competitiveness. 

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