thebosstrevor1:
PPP( Purchasing power parity)

NIGERIA IS CHEAP TO LIVE IN.

IF YOU KNOW YOU KNOW

Nigeria just like any other 3rd world country is cheap to live in compared to developed countries....
The question is what is the purchasing power of the citizens themselves .....Most Nigerians spend their salaries on basic items like food, shelter and other necessities. The disposable income is very low and that's why Nigerians are poor.
And the more the naira is devalued against the dollar, the worse it gets. Most especially for a country like Nigeria that's import dependent.

jmoore:
A wise person compares $1 to 1 Naira.

A wise person compares $500 to 500 Naira.

But many are not wise


Modified: The op modified his post to talk about PPP.
The dell laptop you imported from USA, will it be cheaper in Nigeria? What about the iPhone? What about an electric car?


Take a look around you and see products imported.

It's ridiculous to always talk about FOOD when referring to PPP.


More notes outsourced below.

You didn't make any sense.

You can't compare 500 dollars to 500 naira, it makes no sense at all.

Imported goods are expensive but local goods are cheaper and they get low because of labour cost.

A country where labour cost is cheaper and abudant, price of goods and services falls.

Praxis758:
Neither can u get same here with $1.

I'm not praising the abnormal gap between naira and dollar but was making clarification on the purchasing power in the local market.

Remember the US has cent which too is economically weak but they see it a national heritage.

Argument is pointless. Here is a source backing my claim.https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.expatistan.com/cost-of-living/baltimore&ved=2ahUKEwjlgIXgm7ntAhUcBWMBHXrDCREQFjAQegQICRAB&usg=AOvVaw0CFMSzCUSUkb3-uH_uMVv4

SIRTee15:

Nigeria just like any other 3rd world country is cheap to live in compared to developed countries....
The question is what is the purchasing power of the citizens themselves .....Most Nigerians spend their salaries on basic items like food, shelter and other necessities. The disposable income is very low and that's why Nigerians are poor.
And the more the naira is devalued against the dollar, the worse it gets. Most especially for a country like Nigeria that's import dependent.

Things are cheap in Nigeria because labour is abundant and cheap thus to produce one goods will be cheaper compared to a developed country.

The devaluation of the dollars only affect imported goods not locally produced goods.

Many Nigerians buy locally made goods because of their disposable income, ths rich buy the imported goods, they are the ones mostly affected by the fall of the naira.

Haircut is expensive in the US because of high labour cost.

Haircut in Nigeria is 300 naira very cheap.

Sirfrederick:
You can easily make $1 in the US than N500 in Nigeria.

The only sensible person has spoken. What does it take to make a dollar and 500 naira. 5oo naira is like 4 hours job for those earning 30k a month.

thebosstrevor1:


You didn't make any sense.

You can't compare 500 dollars to 500 naira, it makes no sense at all.

Imported goods are expensive but local goods are cheaper and they get low because of labour cost.

A country where labour cost is cheaper and abudant, price of goods and services falls.

If it's so, why then is bag of local rice not 200 naira since it's 200 dollars in America

The price of almost every food stuff has skyrocketed under Buhari.

Aflix:
If it's so, why then is bag of local rice not 200 naira since it's 200 dollars in America

The price of almost every food stuff has skyrocketed under Buhari.

Transportation cost, different, different import tax system, inflation rate can affect the price of imported rice.

A bag of rice cost 30k in Nigeria
A bag of rice cost 200 dollars ( 76k) in the United states

Yeah, the price of goods have skyrocketed but they are still cheaper when compared to goods in the United states.

thebosstrevor1:


Even if your week pay is 1000 dollars, a person with 1000 dollars per month in Nigeria, will be able to live a very comfortable life in Nigeria compare to you that earn 1000 dollars a week

The reason is Wages are low in Nigeria, so things will be cheaper.

Wages are high in america so it is logical that the cost of goods will be high.

I disagree but even at that !how many people earn $1000 per month in Nigeria ?

Don’t even forget that I earn that wage as semi skilled worker !

What makes the economy to be so comfortable? Majorly food?

It’s quite affordable for rich and poor alike here

olymyk:


I disagree but even at that !how many people earn $1000 per month in Nigeria ?

Don’t even forget that I earn that wage as semi skilled worker !

What makes the economy to be so comfortable? Majorly food?

It’s quite affordable for rich and poor alike here

Food, shelter and clothing are more important than dell computer, iphone and cars. Needs like food is more important than wants like computer.

You are not going to spend that 1000 dollars in Nigeria but in the United states, you 4000 dollars a month in the United states can disappear in 2 weeks because of the high cost of living while a person earning 1000 dollars a month in Nigeria will have a very comfortable life and still have 500 dollars left because of low cost of living.

Lol, this is a very funny topic, you almost got me there, the topic isn't making sense since we aren't going to be spending the dollars here, the real comparison should have been ' what can 1naira buy here and what can 1 dollar buy over there' and you tell me your summation.

Read all my comments. I never justified the wide gap.

I was merely analysing the variables in the two local economy.

I'm not an enemy of economic progress to start praising govt for the devaluations. I wrote earlier that the govt is the sole beneficial of devaluation while the masses become victim.

olymyk:


Since you are comparing 1 , what happened to $1 to #1?

Economy of naija is bad you dey aid them ?!

You want to buy something at dollar tree and dollar general to snap

Tell a Nigerian to snap what he can buy with 1 naira!

Saifulah:
Your thoughts!

Modified;
I have seen some arguments that are off point at a tangent. The idea is comparing the naira to the dollar in terms of their purchasing power after adjustments for inflation and cost of living (in our case also for tariffs, imported inflation etc)

So for instance we could compare cost of 0.75cl of water in the US and Nigeria. or other products that are locally produced in each country

Nigeria's currency is naira while America's currency is the dollar.

In America u can buy things with one dollar but can u by things with one naira in Nigeria?

Also, if u smuggle one dollar into Nigeria, it will be very useful for u in Nigeria but if u smuggle one naira into the US, will it be useful in America?

This thread is one of many calculated campaigns by the government to deceive Nigerians

thebosstrevor1:


Transportation cost, different, different import tax system, inflation rate can affect the price of imported rice.

A bag of rice cost 30k in Nigeria
A bag of rice cost 200 dollars ( 76k) in the United states

Yeah, the price of goods have skyrocketed but they are still cheaper when compared to goods in the United states.

Why are you talking about import tax for locally produced goods And you cannot compare making 200 dollars over there to making 30,000 over here. The lowest paying jobs over there is far more than 200 dollars a month.

The Government needs to invest heavily into agriculture for us to really enjoy the benefits of locally made goods. We can have something like Nigeria farm(Something like the one we had under Obasanjo) When Government gets involved, they indirectly control the price.

And also, our price commission body needs to start working. They are literally non existent in Nigeria.

thebosstrevor1:




Things are cheap in Nigeria because labour is abundant and cheap thus to produce one goods will be cheaper compared to a developed country.

The devaluation of the dollars only affect imported goods not locally produced goods.

Many Nigerians buy locally made goods because of their disposable income, ths rich buy the imported goods, they are the ones mostly affected by the fall of the naira.

Haircut is expensive in the US because of high labour cost.

Haircut in Nigeria is 300 naira very cheap.

There are so many factors of production, cheap labour is only one of them n is becoming insignificant anyway.
Wages are very low in nigeria compared to cost of living.
It's a fallacy to say cost of living is cheap in nigeria because it's not.
For a country with developing economy status, nigeria is expensive to live in.

SIRTee15:


There are so many factors of production, cheap labour is only one of them n is becoming insignificant anyway.
Wages are very low in nigeria compared to cost of living.
It's a fallacy to say cost of living is cheap in nigeria because it's not.
For a country with developing economy status, nigeria is expensive to live in.

Cheap labor is very important and not insignificant. It is the reason why American manufacturing was moved to china.

Cost of living in Nigeria is cheaper when compared to developed country.

A person earning 500 dollars a month in Nigeria can live a good life.

500 dollars in the United states cant rent a good apartment in many states in America

Aflix:
Why are you talking about import tax for locally produced goods And you cannot compare making 200 dollars over there to making 30,000 over here. The lowest paying jobs over there is far more than 200 dollars a month.

The Government needs to invest heavily into agriculture for us to really enjoy the benefits of locally made goods. We can have something like Nigeria farm(Something like the one we had under Obasanjo) When Government gets involved, they indirectly control the price.

And also, our price commission body needs to start working. They are literally non existent in Nigeria.

I was writing about imported rice.

Import duty affects the cost of imported rice.

Also i am not comparing, i am just giving you a clue of the cost of living in Nigeria and america.

I disagree but even at that !how many people earn $1000 per month in Nigeria ?

Don’t even forget that I earn that wage as semi skilled worker !

What makes the economy to be so comfortable? Majorly food?

It’s quite affordable for rich and poor alike here

earning 1k dollars a month in naija can give you a 2 bedroom flat in the city and 4 bdr flat in bungalow in the village within a year earning that in USA is high level poverty.

Saifulah:
Your thoughts!

Modified;
I have seen some arguments that are off point at a tangent. The idea is comparing the naira to the dollar in terms of their purchasing power after adjustments for inflation and cost of living (in our case also for tariffs, imported inflation etc)

So for instance we could compare cost of 0.75cl of water in the US and Nigeria. or other products that are locally produced in each country

Compare minimum wage of 7$ per hour to minimum wage of 176 per hour(assume 8 hours a day, 22 days a month).
An American can easily buy those items with an hour wage, but a Minimum wage Nigeria has save 3 hrs to buy stuff of 500 naira.

Ayed44:
Nigeria's currency is naira while America's currency is the dollar.

In America u can buy things with one dollar but can u by things with one naira in Nigeria?

Also, if u smuggle one dollar into Nigeria, it will be very useful for u in Nigeria but if u smuggle one naira into the US, will it be useful in America?

This thread is one of many calculated campaigns by the government to deceive Nigerians

our consumption appetite and high level importation killed our currency. But still is very cheap to live in naija.

Aflix:
Why are you talking about import tax for locally produced goods And you cannot compare making 200 dollars over there to making 30,000 over here. The lowest paying jobs over there is far more than 200 dollars a month.

The Government needs to invest heavily into agriculture for us to really enjoy the benefits of locally made goods. We can have something like Nigeria farm(Something like the one we had under Obasanjo) When Government gets involved, they indirectly control the price.

And also, our price commission body needs to start working. They are literally non existent in Nigeria.

I think it is because the demand for rice outstrips the supply. And then supply chain too unlike in USA where there are so many substitutes

jesmond3945:
our consumption appetite and high level importation killed our currency. But still is very cheap to live in naija.

Is cheaper to live in any 3rd world country...not only naija.
Yet that doesn't make them better.
U live like a king earning 1000 dollars in Burundi, Togo malawi or any 3rd world country.
The question is how many people in those countries earn 1000 dollars per month? Whats the disposable income in those countries? That's the point.
Enough of all these deceptive analogy, they only intend to cover up for this govt inefficiency.

SIRTee15:


Is cheaper to live in any 3rd world country...not only naija.
Yet that doesn't make them better.
U live like a king earning 1000 dollars in Burundi, Togo malawi or any 3rd world country.
The question is how many people in those countries earn 1000 dollars per month? Whats the disposable income in those countries? That's the point.
Enough of all these deceptive analogy, they only intend to cover up for this govt inefficiency.

it is easy to make that amount if we are a highly exporting nation. The only thing we export now is only oil. However, we are also exporting ict expertise and solutions. I have friends making thousands of dollars from that in naiaj. I don't mean yahoo.

jesmond3945:
it is easy to make that amount if we are a highly exporting nation. The only thing we export now is only oil. However, we are also exporting ict expertise and solutions. I have friends making thousands of dollars from that in naiaj. I don't mean yahoo.

Diversity in export automatically takes u off 3rd world status.
for an average Nigerian to earn 1000 dollars monthly, nigeria will boast of a GDP of over a trillion dollars. With average GDP per capita of more than 10 thousand dollars and total export in manufactured goods n services will also be over 250 billion dollars. It's not an easy job...it takes lots of hardwork n discipline..ask Chinese.
Most 3rd world nations are poor because they export only one primary product which is naturally insufficient. Same thing with Nigeria.
Nigeria is not even recognised among the significant ICT service export nation so I wonder where your fallacy statement came from..So I'm not even going to debate that.

DamnnNiggarr:
what happened to our own 1 naira??
Have you ever wondered what you can purchase with $500.
If that's the case, compare 500 naira with $500.

Imagine comparing 500 naira to ordinary $1.

Nigerians and useless dick measurements.

"Imagine comparing 100 centimetres to ordinary 1 metre" - this is how you sound like.

SIRTee15:

Diversity in export automatically takes u off 3rd world status.
for an average Nigerian to earn 1000 dollars monthly, nigeria will boast of a GDP of over a trillion dollars. With average GDP per capita of more than 10 thousand dollars and total export in manufactured goods n services will also be over 250 billion dollars. It's not an easy job...it takes lots of hardwork n discipline..ask Chinese.
Most 3rd world nations are poor because they export only one primary product which is naturally insufficient. Same thing with Nigeria.
Nigeria is not even recognised among the significant ICT service export nation so I wonder where your fallacy statement came from..So I'm not even going to debate that.

our ict export is growing, paystack made 500 million dollars. It is unfortunate that the government don't want to invest in that just like india did.

Ayed44:
Nigeria's currency is naira while America's currency is the dollar.

In America u can buy things with one dollar but can u by things with one naira in Nigeria?

Also, if u smuggle one dollar into Nigeria, it will be very useful for u in Nigeria but if u smuggle one naira into the US, will it be useful in America?

This thread is one of many calculated campaigns by the government to deceive Nigerians

It should be naira vs dollar. Kobo vs cent!

BeLookingIDIOT:

"Imagine comparing 100 centimetres to ordinary 1 metre" - this is how you sound like.

1$ is to Americans as 1 naira is to Nigerians.

$500 is to Americans as 500 naira is to Nigerians.

When next you're comparing 500 naira to $1 make sure to compare $500 to 1 naira.
It's as simple as that.