A recent study by Picodi shows that prices of basic food products are higher than the current minimum wage in Nigeria.
The report shows that most countries, due to the pandemic, have not been able to up the minimum wage, and Nigeria is among those countries.
When a comparison was made to the increase noticed in the minimum wage in 2020 (N27,000), it was observed that there had been no change, as it remained the same.
Of the 56 countries that were included in the study, Nigeria ranked 41.
In 2020 Nigeria recorded the highest year-to-year increase in the minimum wage, although, that increase was disappointing when converted to US dollars.
For a full comprehension of the paltry sum minimum wage earners get in Nigeria, the firm decided to compare food prices and the effect on minimum wage earners.
The result of this showed that the minimum wage failed to cover the “most basic shopping basket.”.
In the shopping basket include milk, bread, rice, eggs, cheese, poultry and beef, fruits, and vegetables.
It broke each item down with their corresponding prices: Milk (10 litres) – N9,160; Bread (10 loaves, 500g each) – N3,680; Rice (1.5kg) – N1,170; Eggs (20 pieces) – N830; Cheese (1 kg) – N1,810; poultry and beef (6 kg) – N9,220; Fruits (6 kg) – N4,490; vegetables (8 kg) – N5,000.
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“The total price of basic food products amounts to ₦35,360, which is 9% more than in the previous year,” stated the report.
Basic food items, according to the report, make up 131 percent of the minimum wage for 2021, compared to the 121.4 percent recorded last year.
“The basic food makes 131% of the minimum net pay. With last year’s prices, the same products made 121.4% of the minimum wage at that time. It means that in Nigeria, the situation of the least paid workers has worsened,” the report stated.
When the prices of the same food items with the minimum wage obtainable in various countries, it showed that countries like the United Kingdom, Australia, and Ireland basic food products are worth around 7 percent of the minimum wage.
The report stated, “In this ranking, Nigeria with the score of 131% placed last among 56 countries. In the similar position is Uzbekistan, where the basic food products make 103.9% of the minimum wage.”
