Workers Day: Nigerian workers struggle to survive as cost of living skyrockets

As Nigerian workers celebrated workers’ day on Sunday, May 1, many are quick to point out that the N30,000 minimum wage which some States are yet to implement, is insufficient to meet the value of basic foodstuffs for the healthy living of an adult in a month, let alone an entire family.

They argued that inflation in Nigeria increased by 15 per cent during the 11 months from April 2021 to March 2022, noting that pressure on the cost of living for salary earners whose incomes have not risen for close to three years.

In January 2022, the price of essential foodstuff requirement for one adult stood at 40,980 Naira ($98), which is about 37 per cent higher than the minimum wage.

Nigeria’s poverty levels have been increasing since 2018 when the index stood at 39.1 percent. In 2020 it rose to 40 per cent and in 2021 to 42.6 per cent. Estimates for 2022 are that it will hit 44 per cent.

Workers who earn the minimum wage have been hit the worst. The poverty index pegs extreme poverty at those living on less than $1.90 a day. In Nigeria, the minimum wage currently amounts to about $1.75 per day, showing how many Nigerian workers are perilously close to extreme poverty.

The ongoing Russia-Ukraine war is exacerbating the situation. Global commodity and food prices are rising. Grains alone have already gone up by 17.1 per cent.

The impact will hit food prices in Nigeria if the government does nothing to alleviate the pressure. This will mean further deterioration for salary earners in the country.

According to the Chairman of the Nigerian Economic Summit Group (NESG), Asue Ighodalo, about 91 million Nigerians are currently below poverty line.

In his own words, Ayuba Wabba, President of the Nigerian Labour Congress (NLC) the reasons for endemic poverty in Nigeria are not far-fetched.