The latest report released by SB Morgen (SBM) Intelligence shows that Nigerians who earn less than the newly approved N30,000 minimum wage spend 95% of their income on food consumption.
According to the SBM report titled, discretionary income Nigeria, Nigerians who earn less than the minimum wage spend almost all their income on food, and this is natural as such people must find a way to fit in their expenditures into their earnings.
Income distribution: Specifically, the survey was conducted in July 2019 across 13 cities which include Ibadan, Suleja, Abuja, Kaduna, Kano, Jos, Makurdi, Port Harcourt, Owerri, Onitsha, Warri, Benin City and Lagos.
- SBM categorised the income distribution of respondents into four categories. Out of 1,633 respondents across 13 states, 7% earn more than ₦120,000 per month, while 6% of them earn nothing.
- The largest concentration of respondents (29%) earn wage between ₦50,000 and ₦80,000 per month.
- Also, a total of 71% of respondents earn their income in the 3 salary ranges that encompass ₦30,000 and ₦120,000 per month.
Money spent on food: It was found that 94% of those who earn nothing, presumably mainly young people, spend less than ₦30,000 a month on food, while the rest spend between ₦30,000 and ₦60,000 monthly on food.
- For the Nigerians who earn less than the minimum wage, the report shows they spend less than ₦30,000 monthly on feeding. Meanwhile, 5% of them spend more than they earn on feeding.
- For people who earn slightly above the national minimum wage (₦30,000 to ₦50,000 monthly), 84% spend less than ₦30,000 per month on feeding, while 16% spend between ₦30,000 and ₦60,000 per month on food, that is slightly above their income.
- The findings also show that 74% of earners of ₦50,000 to ₦80,000 per month spend less than ₦30,000 per month on food.
- Lastly, 62% of earners of ₦80,000 to ₦120,000 per month spend less than ₦30,000 a month on feeding.
The big drop: According to SBM report, the most dramatic drop, naturally, occurs in the group of highest earners – people who earn more than ₦120,000 per month. Only 17% of them spend less than ₦30,000 on food monthly.
- However, none of the respondents in the category mentioned above spends more than ₦60,000 a month on food, suggesting that for an individual in Nigeria, ₦60,000 each month may be the right pressure point for a decent meal, and that the highest earners have other things to think about apart from food.
- It was revealed therefore that for non-food items that are susceptible to discretionary spending, most Nigerians need to earn at least above ₦60,000 to be within the addressable market.
Spending on other items: The report shows that other items Nigerians spend on include internet, mobile phone recharge cards and clothing. Specifically, 63% of the respondents revealed that after taking care of food, they often have nothing left to spend.
- Specifically, 10% of the respondents spend money on clothing, and mobile phone recharge cards to keep connected either via phone calls or on the internet.
Reflecting on Nigeria’s housing shortage: Only 2% of the respondents spend their discretionary income (income after essential commodities) on rent. It is more likely, however, that most Nigerians do not cater for rent from their monthly income and usually find other sources that will yield sizeable lump sums, either by borrowing or by looking for alternative income sources apart from their primary sources to deal with rent and school fees.
The conclusion: Nigeria’s true market size is really the number of people who can spend on discretionary items once they get past spending on the essential commodities, and SBM survey puts the population under 37%.
According to SBM, the two most important policy thrusts that the government must make central to its policy planning are to reduce the cost of food in order to free up more discretionary income as well as to increase productivity and therefore the income of Nigerians.
It is also important for government to facilitate access to credit in order to cater to bulk expenses such as rent and school fees, as well as increase the discretionary income pool. Without an increase in discretionary income, savings are unlikely to increase and therefore investable funds within the economy will remain relatively low.
SBM concluded that it is only when discretionary income increases that Nigerians will be able to afford more products, creating the environment for new businesses to thrive.
#EndSARS: Sanwo-Olu gifts families of slain police officers N10 million each
Governor Sanwo-Olu has compensated the families of slain police officers with the sum of N10 million each.
The Executive Governor of Lagos State, Babajide Sanwo-Olu has brought respite to the families of police officers killed during the violence witnessed in the aftermath of the #EndSARS protests.
According to the disclosure on the Twitter page of the Lagos State Government, the families were handed a cheque of N10 million each and the children of the slain officers awarded scholarships by the government.
Governor @jidesanwoolu handing over a cheque of 10 million naira each to the families of police officers who lost their lives during the unrest that followed the EndSARS protest and awarding scholarship to their children. @followlsstf @ceolsstf @LagosPoliceng#LASG #SecureLagos pic.twitter.com/XdjPPRsRf7
— The Lagos State Govt (@followlasg) December 3, 2020
What they are saying: Commenting on the recent development, a tweet by the Lagos State Government read thus: “Governor @jidesanwoolu handing over a cheque of 10 million naira each to the families of police officers who lost their lives during the unrest that followed the EndSARS protest and awarding scholarship to their children.’’
Why this matters: The recent effort by the Governor is in fulfillment of the promise he had earlier made to compensate affected victims of the post-EndSARS protest which led to the loss of lives and valuable properties both in the state and the country at large.
The compensation will be viewed by serving officers as a motivation, aimed at promoting patriotism, loyalty, commitment and dedication to national service.
What you should know
How digital transformation will impact Nigeria’s projected $8.79 billion economic expansion
Businesses will need to invest in appropriately reskilling and upskilling the national workforce to create a better digital Nigeria.
The Nigerian economy is projected to grow by $8.79 billion in the next three years to 2023, driven largely by the ICT, agriculture, health, finance and insurance sectors, according to a new study by global training providers elev8 and the BusinessDay Research and Intelligence Unit (BRIU).
More than half of the projected growth will come from the ICT sector, as companies continue to create innovative products and services leveraging ICT and telecoms. To take advantage of this growth, however, businesses will need to invest in appropriately reskilling and upskilling the national workforce to create a better digital Nigeria.
The research comes off the back of the Covid-19 pandemic, which has laid bare the digital divide, with those businesses having invested sufficiently in their digital capabilities overtaking those firms who failed to do so.
However, this trend of digitally forward businesses outperforming their technology-inferior counterparts isn’t new, the study reveals. Analysis of the data, which went back as far as 1992, showed that the major companies outperforming others in Nigeria are those that spend more on upskilling, research and development, and technology acquisition.
Economic rewards await
In recognition of its benefits, Nigeria has made efforts in the past, and continues to make more efforts at digitalizing its economy. The progress made in Nigeria’s ICT sub sector has had a positive effect on its gross domestic product (GDP). Research shows that the sector’s contribution to GDP has risen from 7.70 percent in 2012 to 14.30 percent by Q2 2020.
Meanwhile, the Nigerian government’s National Digital Economy Policy and Strategy, launched in 2019, aims to improve digital literacy and skills to build out the country’s digital capabilities.
However, the digital infrastructure readiness in Nigeria is still far below the global average. For this to be upgraded, the current skill set of government employees working in this area will need to be updated. This should warrant the designing of training programs that will help the government raise the level of digital infrastructure in Nigeria in the shortest possible time and at affordable costs.
The high economic rewards from closing the digital skills gap should see this become an even greater priority. If the entire Nigerian economy is digitalized, the country could take a bigger bite of the global digital economy, which is estimated at $11.5 trillion.
Where digital leaders are made
Global training provider elev8 offers training programs focused on the latest technologies, and is uniquely placed to help businesses and the Nigerian government connect to opportunities as highlighted in the report.
Bringing together renowned industry experts, elev8 offers the flexibility of virtual classrooms or face-to-face programs, depending on what’s best for the organization and its learners.
Taking a holistic approach, power skills like communication, collaboration and analytical thinking are embedded into elev8’s technical training in order to develop well-rounded digital experts who can bring the most value to their employers.
Training methods are practical and action-based – built around projects, tackling real business challenges – enabling learners to put theory into practice from the day one.
No matter the technical need, elev8 can design and implement bespoke solutions tailored to a company’s individual requirements.
elev8’s global academy equips business leaders, teams and organizations with the skills they need to leverage the technologies of the future and transform Nigeria into a knowledge-based economy.
To read the report in full, or to discover more about the elev8 training academy, go to www.elev8me.com/en-us/africa.
Covid-19: WHO says the promise of vaccine is a game changer
The WHO has stated that the promise of Covid-19 vaccines is phenomenal and potentially game-changing.
The World Health Organization has said that the promise of Covid-19 vaccines is phenomenal and potentially game-changing.
This disclosure was made by the WHO’s Regional Director for Europe, Hans Kluge, during a press briefing at Copenhagen on Thursday, December 2, 2020, according to a report from Reuters.
Kluge said there are expectations that there would be limited supplies of Covid-19 vaccine supplies at the early stages and as such countries must decide who gets priority.
However, the WHO emphasized that there is a growing consensus among stakeholders that older people, medical workers, and people that share the virus with some other health conditions will be among the first recipients of the vaccine.
What you should know
It can be recalled that yesterday, UK regulator gave its approval to the Covid-19 vaccine, which was developed by Pfizer Inc in collaboration with BioNTech, moving ahead of the rest of the world, including the United States in the race to begin the most crucial mass inoculation programme in history.
- This follows the announcement by Pfizer that the vaccine proved 95% effective in a final analysis of clinical-trial data for its phase 3 study.
- In addition, Biotech firm, Moderna Inc, also announced that its Covid-19 experimental vaccine was 94.5% effective in a preliminary study.
- The United States and European Union regulators are sifting through the same Pfizer vaccine trial data, but are yet to give their approval.
- The WHO revealed on Wednesday it had received data from Pfizer and BioNTech on the vaccine and was reviewing it for possible listing for emergency use, a minimum condition for countries to authorize national use.