The cost of cooking a Christmas meal is about 73% of the minimum wage for average Nigerian households as inflation bites hard.
In an earlier report by Nairametrics, preparing a meal comprising fried rice, grilled chicken, and a side dish of vegetable salad for a middle-class family of four this Christmas is expected to cost about N21,800.
With a minimum wage of N30,000, it means that about 73% of the minimum wage is likely spent for such a household to enjoy a meal this yuletide.
It is also important to note that while the cost of buying food has increased, the value of minimum wage in the country has decreased.
Nairametrics earlier reported that the average cost of getting food and drinks has increased by 92.73% in the past three years.
However, during his presentation of two reports last year, the World Bank Lead Economist for Nigeria, Alex Sienaert, said that the Nigerian minimum wage, which was worth N30,000 in 2019, could be valued at N19,355 as of December 2022. This means that there had been a loss of 35.48% value between 2019 and 2022 as inflation erodes the purchasing power of many Nigerians.
He added that the rising inflation had led to a slump in the purchasing power of Nigeria. In the Nigeria Development Update (NDU) report for December 2022, it was noted that consumer price inflation had heightened, making it one of the highest in the world.
Also, according to a report by BudgIT, about 15 states in Nigeria were yet to implement the N30,000 minimum wage signed into law in 2019, as of 2022.
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The Federal government and the organised labour unions have engaged in negotiations on a new minimum wage following the fuel subsidy removal and increasing cost of living. The Nigeria Labour Congress (NLC) said that it would negotiate a new minimum wage of N100,000 or N200,000 due to the rising cost of living.
The Federal Government recently announced that a revised minimum wage will be implemented starting April 1, 2024.
Making the announcement, Idris Mohammed, the Minister of Information and National Orientation, said:
- “Certainly, there Is a new wage regime that will come in on April 1, 2024. That is why these palliatives were targeted so they would cushion economic hardship before then. In our negotiation with Labour, we said that the wage issue was not something one could just fix. A committee that will also involve Labour itself will work on it.
- “The committee is being constituted and we are talking to Labour about it. And by the time this current wage regime expires by the end of March, we will expect that a new wage will begin by April.
- “It is in this wage regime that we will now have a proper salary structure for workers across the length and breadth of Nigeria. We expect that the private sector and state governors will also do the same.”
