The World Bank disclosed that Nigeria’s minimum wage of N30,000 introduced in 2019 is now valued at N19,355 discounting for inflation today.
This was disclosed by the World Bank, at its Nigeria Development Update and Country Economic Memorandum in Abuja on Thursday attended by Nairametrics.
They urged the Nigerians Government to increase investment accelerators including access to finance, trade and power generation.
The Bank stated that that the cumulative inflation between 2019 and 2022 was 66%, citing that Nigeria’s minimum wage in nominal value in 2019 was N30,000 which was $82 in dollar terms.
The World Bank disclosed that “ The real minimum wage in naira in 2022, after discounting for inflation is N19,355” adding that at dollar value terms it is $26 in 2022 “ after discounting for both inflation and exchange rate depreciations”
“ The parallel market exchange rate depreciated from N367 to N760” they added.
They also revealed that 7 main assessments for Nigeria’s growth performances over the past 2 decades including deteriorating macroeconomic stability to over-reliance on oil exports are:
- Macroeconomic stability steadily deteriorating over the past decade as Nigeria lags behind Africa in its Macrostability Index at 30 points, compared to 90 for sub-Saharan Africa.
- Past growth performances of the Nigerian economy were directly linked to the pace of reforms, they said.
- Nigeria lacking in large and mid-sized formal productive firms,
- Over-reliance on oil exports has hindered economic diversification.
- Slow Structural transformation and job creation pace in Nigeria.
- Employment growth not occurring in subsectors with the highest labour productivity growth, thereby dragging down value added.
- Lack of economic transformation hindering poverty reduction.
The Bank noted that a selected priority of reforms would be needed to plot a new growth path.
What you should know
Nigeria’s inflation rose to 21.47% in November from 21.09% recorded in October, representing the 10th consecutively monthly increase since the start of the year.
Nigeria’s inflation rate has now risen to its highest level since September 2005 when the rate stood at 24.32%.
According to the NBS, the increase in the year-on-year inflation rate can be attributed to an increase in the cost of importation due to the persistent currency depreciation and a general increase in the cost of production.
Food inflation, a closely watched indices, rose to 24.13% in November 2022 from 23.72% recorded in the previous month. The rise in food inflation was caused by increases in prices of bread and cereals, oil and fat, potatoes, yam and other tubers, food products, and fish.
