A new study by the World Bank has revealed that due to Nigeria’s cumulative inflation between 2019 and 2022 of 66 percent, the country’s minimum wage of N30,000 introduced in 2019 has devalued to N19,355. The World Bank stated that inflation and depreciation in exchange rate has consequently devalued Nigeria’s minimum wage in nominal value from $82 in 2019 to $26 in 2022.
The World Bank assessed Nigeria’s economic performance on several factors, including its Macro Stability Index in which the country scored 30 points, compared to 90 for sub-Saharan Africa, Nigeria lacking formal productive firms, overdependence on oil, etc.
The World Bank claims “If structural reforms are not implemented, Nigeria’s future looks bleak, per capita income will plateau, Nigerians will not have a full-time job by 2030 and if the employment rate does not improve, 23 million more Nigerians will live in extreme poverty by 2030.”
What you should know
The World Bank’s Chief economist, Alex Sienaert, disclosed that Nigeria’s poverty population rose by 5 million people in 2022 as a result of a rise in inflation rate.
According to the National Bureau of Statistics (NBS), Nigeria’s inflation rate rose from 21.09 percent in October to 21.47% in November; representing a 10th consecutive monthly increase since the start of the year.
Food inflation rose to 24.13% in November 2022 from 23.72% recorded in the previous month. The spike in food prices is as a result of an increase in prices of bread and cereals, food products (including potatoes, yam and other tuber), fish, meat, oil and fat. There were also hikes in prices of gas, liquid fuel, solid fuel.