₦airaland Forum

CSTRR:
Instead of this guy to invest all his wealth in Nigeria where he made it, he is busy spreading it all over africa.
The same africans that hate Nigerians with a passion.

If that was how rockefeller did, America would not be the industrial power it is.

Your kind of comment is the reason why reason Nigeria is an economic dwarf with one of the largest youngest population globally.

Eleph:
Another good news from the private sector due to the failure of governments across Africa.

Failure of government across Africa?
How many oil refineries are owned and operated by the government?

Skydivine:
Tinubu does not care about the rest of the country . As long as he is borrowing and directing the money to Lagos state projects alone, that is enough for him.

We were told that removing fuel subsidy will save money, enough for most needed capital projects, but here we are with nothing to show for it except more debts.

Who goes borrowing in manner with no limits. Maybe to show that his government is performing but the data is backing up the story . It’s an delusional to project such image , when every knows exactly the situation of things in country.

This is no longer a situation of the more you , the less you see The recklessness in borrowing is making the economy to bite really hard.

You were told that removing petrol subsidy that was financed by debts save money. If a man that was borrowing to send his children, then he stopped from going to school so that he will stop paying school fees. Will you go and ask him how him he has saved since his children has dropped out of school?

AMINDA:
"Nigeria is generating so much revenue that governors are no longer borrowing" - Tinubu

So who is now borrowing these domestic debts that is making debt servicing to skyrocket to unprecedented levels? Federal government?

If some of one study monetary economics the same way you study politicians, you should have known that the socialist system of government operated in Nigeria generated revenue by increasing taxes causing inflation and using monetary policies to borrow back the money, hence curtailing the inflation.

Kukutente23:
How does that change the fact that it's still debt

The economic system is built on debt, operated on debt, maintained on debt. Those will know how to use become rich, those who don't know remain poor.

CodeTemplar:
Someone thinks APC is the problem but is there any other party towing a different path?
All 36 states governors are doing same thing in principle. Save for Obi who has a teack record of saving, who can we point to for a different approach.

Saving money that cannot beat inflation

Kukutente23:
How does that change the fact that it's still debt

Last time I checked, you live in an economic system where the foundation is debt and roofing is interest.
An evening class on monetary economics will let you it an anti-inflation measures.

prinsam30:
So what happens to the subsidy money

Which subsidy money?
Is the same subsidy that was financed by debts?

Jman06:
To you, all the cries by civil servants in Nigeria does not matter since you're not one of us. Do you know what it means to be earning a salary that finishes within one week of payment You have about 4 weeks that you're expected to go to work and your salary finishes in the first week due to high cost of living. You can't even afford food to eat let alone transportation to work, yet you don't see the urgent need for significant salary increase by government? Just because you are not affected you think that workers shouldn't demand significant pay raise! That's very selfish of you!

If government doesn't want to raise the minimum wage to at least ₦500k per month, then the number of days workers are to go to work in a month should be reduced to a maximum of 14 days per month. That way, the workers can have some free days to do other things to boost their income. The ₦500k is not even enough! An average family in Nigeria at the moment need at least ₦1M per month to live averagely.

To you also, monetary economics is useless. Hence, you demand higher minimum wage every fours only to earn nairas with lesser purchasing power than previous ones.
Have ever ask yourself while countries with best minimum wage have it between 500 and 2,000 monthly in there currencies while poor countries like Nigeria earns 70,000 demanding for more to become more poorer.
The ₦500,000 minimum wage will look like ₦50,000 and will finish in less than 24 hours after receiving it.

grandiose4ever:
Nonsense talk. All the jobs, the forex gained is not a add to Nigeria

The forex reserve gains reported few days ago was that of Nigeria from Jupiter?

Osgilliat:
Now that Dangote is becoming largest suppliers of some products.. it’s time federal government remove taxes on some of his products that are being used locally like cement so it can become cheaper and in return put more taxes on his export products. It’s time we start to feel the impact of this refinery, we all suffered for it when all our subsidies dollars was being used to buy the heavy equipments.

Which subsidized dollar?

Oracleee:
As usual, monopolize the market with the help of an unserious government policies, rub Palms with envelopes and make life miserable for the masses.


Presently fuel is 1317, what advantage is Dangote to humanity

You keep quiet when Tinubu removed petrol subsidy and devalued the naira

PlasmaTV:
Dangote refinery has zero benefit to Nigeria and Nigerians.

The guy is just a bloody monopolist.

It's a shame that Nigeria, as big as she is, doesn't have a working refinery. But if it's to build coastal road or to do solar in aso rock or to renovate VP's residence, APC will sign the bill asap.

Says someone who is not standing on a five hour queue to buy a litre of petrol at ₦3,000 with dollar above ₦5,000.

TenQ:
I think the first thing is actually looking at the basic need of a Nigerian and calculating the living wage as the minimum wage.

Example
For an Adult Nigerian
1. Food per day:
One tin milk = N1000
One Beef/Fish= N500
Vegetable= N200
Carbohydrates= N1000
TOTAL= N2700 per day
=N81,000 per Month

2. Transport per day:
@N2000 per day
=N50,000 per Month approx


3. Housing
N300,000 Per Year
=N25,000 per Month

4. Clothing
N50,000 per Year
=N4,000 per Month approx.

5. Toiletries
=N1,000 per Month approx

6. Utilities (Electricity/Water/Phone Subscription)
=N10,000 per Month approx



I am sure that these estimates are not above average for a Nigerian as of today.

TOTAL= N81,000 + N50,000 + N25,000 + N4,000 + N1000 +N10,000 = N171,000


In other words, conservatively, no Nigerian should earn less than N171,000-N200,000 per Month.

And if you add tax of (₦187,800) per annum or ₦15,650 per month, the monthly minimum wage must not be less than N186,650 - N215,650 per month

Anything less than this is SLAVERY!!



But we have a TERRIBLE Government that do not care one bit about WELFARE of citizens.

The higher your minimum wage in naira, the higher the prices of goods and services in naira.

Jman06:
Yes o! The current salaries of civil servants is nothing to write home about compared to the cost of living. Imagine that nowadays, most government workers have their salaries exhausted in just the first week of the month. They'll still pay house rents and transportation fares to work.

NLC and TUC must insist on ₦500000 monthly pay for the lowest cadre of civil servants! That's the only way workers can survive the current astronomical increase in the cost of everything in the country.

Until you guys push wheelbarrow load of nairas to buy a loaf like Zimbabwe years ago, basic monetary economics will continue to look rocket science!

TojuOke:
You are correct sir. Things are so hard. 100k to the market is like 10k..

The 500k will look like 5k in the market.

lawani:
If they enforce any amount on all employers they will pay. Nobody will shut down because of operations expenses except if what you are producing can be imported from other countries where labor is cheaoer

Also be ready to be the next Zimbabwe

HacheNoire:
It’s very possible and even a million is possible. The question now should be, how do you manage inflation with such increment?

Anyone familiar with basic economics knows the end result. It will a big self inflicted stab on our economy.

You don't want to burn down your house but you are planning to set it on fire.
Is any country earning than Nigeria that there minimum wage is up to 70,000 in there local currency?

lawani:
Minimum wage is what you pay to a sales attendant or waitress. That is what minimum wage really means. It is not something anyone should plan to marry on or to raise a family on but it should be high enough to bear tax payment and pension deduction

Minimum wage in south Africa is maybe 300k in naira or about that.
Minimum wage in Nigeria can buy like 140 bottles of coke on the street

In South Africa maybe 300 or a bit more

20 years minimum wage should be able to build a small house in Nigeria in a second tier city

In south Africa 20 years minimum wage can't in the average city

Average hotel stay in Ibadan 45 to 90 dollars
Average hotel stay in Joburg 54 to 227 dollars

If you hire an artisan or a professional in South Africa be prepared to pay at least three times more than the Nigerian cost

So Nigeria should increase minimum wage but to enforce it on all employers is what is more important and 500k will be too high. In Nigeria some households with children don't earn up to that and they are living in their own homes without being in any bad racket

Are South Africans earning 300k rands to live a better life?

brain54:
:::


I think minimum wage should be somewhere around 280- 320k.


What workers get currently is peanuts. Look at soldiers salary. It commendable the increment for now... but those dudes ought to be paid higher.


Minimum entry to Nigerian army should be at least 400k not 180k.


:::

The higher the minimum wage in naira, the weaker the purchasing power of naira and the higher the prices of goods and services with more Nigerians getting poorer.

Josywhyte:
Oga if you don't understand my point rest abeg. They see those things as side hustle to meet up financially. Why hasn't the army general or FG given an order for all army personnel to go back to the barracks and stay there?

Side hustle?
Side hustle that pays two more or more in any part of the world.

TheGoodJoe:
Minimum wage in a day in Europe is more than double the minimum wage a month in Nigeria. Yet you don't think it is heartless for us to pay about half the price of their diesel price in Nigeria?

Talking about heartless, subsidy is still called free money to the elites by the same Nigerians suffering and smiling.

Sheuns:
Let me break it down for you.

A unit or 2 units of his currency can get him a liter of diesel. Minimum wage over there maybe 20 euros an hour. Note minimum wage is the lowest wage for the average earner there.

Out of 20 euros, he can buy about 10 liters of diesel from just an hours work. He bought 45 liters. That means if it were in his country, he’ll probably need just 2-3 hrs or work to buy that fuel. That’s cheaper compared to Nigeria where minimum wage is 70,000 Naira a month. If we divide that by 160 hrs of work a month, that comes to 437.5 Naira per hr minimum wage.

Someone earning that can’t buy 45 liters of diesel as that’s already more than what he earns in a month.

Our expenses in Nigeria far outweigh our incomes that’s why fuel is more expensive here than in Europe.

This your comment reveals why I'm not a supporter of the textbook of increasing minimum wage to make life better. You know why?
Let's look at the theory of money.
It states that the value (purchasing power) of money is inversely proportional to the volume. This means the more nairas the government adds to the minimum wage, the lower the purchasing power.
As you have stated, Europe has an hourly minimum wage 20 euros ( 20 units of there own domestic currency) while Nigeria has an hourly minimum wage of 437.5 which makes naira less valuable than euros making Nigeria expensive and poorer.
If Nigeria wants to be rich and commodities cheap as Europe, hourly minimum wage should be ₦20 just as Europe is €20.

Josywhyte:
Na hunger make those soldiers accept that offer. No blame them. Their salary no go anywhere for them, not to talk of their family. Let their army oga use this same energy to mount pressure on government to increase soldiers salary to a reasonable amount so these won't be used as "bouncer's".

So it is hunger that made American soldiers especially special forces to be joing private security, private military and private intelligence agencies?

Reference:
I think our inflation problem is structural. How does government mop up excess cash from government. Government remains the heaviest cash 'pusher' into the economy. They are the ones causing the Inflationary pressures.

If you have a fuel fire it is expedient to turn off the source just as you fight the blaze. That I believe it is why the rate continues to remain stubbornly high for so long and I cannot see it headed down anytime soon.

The best fighters of inflation remains the private sector. They know where real value lies. Their spending tailors their earnings unlike government that has access to endless money trees. And the raised TB rates says it all.

My view is that it is good for the investor, fair to the government, but bad for the economy. I remain old school in the fact that debt is not a good thing overall for the mere fact is is hopelessly addictive.

Please, can you explain your first paragraph.

Shimmaa:
Politics is so expensive, imagine donating and dashing out millions everytime only to loose elections

He is not donating to loose money, he donating for tax avoidance to reduce his tax bill and save more money.

mamaafrik:
why have we not being seeing the reflection??

Foreign exchange reserve increment is just about a currency appreciating vertically against another currency. It has to expand horizontally to increase spending limit. If you been observant, banks have increasing there spending limit on USD both on naira cards and dollar card.

revelation2013:
Increase in foreign reserves should positively impact on the exchange rate. But we are yet to see the impact.

Increase in reserve impacting the exchange of a 240 million population waiting for the next foreign product to consume?

Stephen0mozzy:
Economists in the house. Can you please explain to is how our Foreign Reserves is growing upandan, yet we're borrowing left right and center loans that will have to be serviced. I'm genuinely curious.

What's the economic interpretation of this?

Have you ever asked yourself where the dollars that powers the foreign goods and services you consume?

mamaafrik:
Yes, Nigeria’s foreign reserves can increase while most citizens remain poor. Foreign reserves measure the country’s external financial buffer—not the welfare or purchasing power of households.

Nigeria’s gross external reserves have reportedly risen above US$45 billion, while official inflation declined slightly from 15.93% in May to 15.91% in June 2026. However, the IMF still estimates that poverty is extremely high and that millions of Nigerians face food insecurity.

1. Higher reserves do not enter people’s bank accounts
Foreign reserves are mainly foreign currencies and external assets held by the CBN. They are used to:

pay for critical imports and external obligations;

defend or stabilise the naira;

reassure foreign investors;

provide protection against oil-price and other external shocks.

They are not government revenue that can simply be shared among citizens or spent freely on salaries, roads and food subsidies. Spending reserves carelessly would weaken the naira and could restart an exchange-rate crisis.

Think of reserves as the country’s emergency savings account. A family can have emergency savings while its members still struggle with low monthly income.

2. Falling inflation does not mean prices are falling
An inflation rate of 15.91% does not mean food, transport and rent have become cheaper. It means that, on average, prices are still increasing—just at a somewhat slower annual rate.

For example, an item costing ₦10,000 could become approximately ₦11,591 after a 15.91% increase. Therefore, families continue to feel hardship unless wages and incomes increase faster than prices.

Furthermore, NBS reported food inflation at 17.52% in June 2026, higher than headline inflation. Since poorer households spend a large proportion of their income on food, their lived experience may be worse than the headline figure suggests.

3. Previous price increases have not been reversed
Nigeria experienced major increases in fuel, transportation, electricity, food and imported-product prices following exchange-rate depreciation and subsidy reforms. Even when inflation slows, the accumulated price increases remain.

The naira may now be more stable, but it is stabilising at a much weaker value than several years ago. The official NFEM rate was around ₦1,365–₦1,370 per US dollar in early August 2026. Consequently, imported machinery, medicines, raw materials and spare parts remain expensive.

4. Economic growth is not yet sufficiently inclusive
An economy can grow because oil exports, banking, telecommunications and financial markets are performing better, while ordinary workers, farmers and small businesses see little improvement.

The World Bank has acknowledged that Nigeria’s stronger external balances, revenue and economic growth have not yet significantly improved living standards. It says the country still needs more productive jobs, better public spending, lower food inflation and stronger social protection.

Nigeria’s population also grows rapidly. Therefore, total GDP can increase while income per person improves very slowly—or even declines. What matters to citizens is not only national GDP growth, but growth in real wages, employment and household income per person.

5. High interest rates are painful for businesses
To fight inflation and attract investment, the CBN has maintained a very tight monetary policy. The Monetary Policy Rate was 26.5% in July 2026, with a 45% cash reserve requirement for commercial banks.

This may help control inflation and support the currency, but it also makes loans extremely expensive. Small manufacturers, farmers and traders may find it difficult to borrow, expand production or employ additional workers.

Therefore, the same policy that strengthens reserves and stabilises the naira can temporarily suppress business activity and job creation.

6. Some foreign inflows may be portfolio investment
Foreign investors may bring dollars into Nigeria to purchase government securities, equities and other financial assets. These inflows strengthen reserves and the foreign-exchange market, but they do not automatically create factories or large numbers of jobs.

Long-term foreign direct investment in manufacturing, agriculture, mining, electricity and infrastructure generally has a stronger impact on employment than investors purchasing short-term financial instruments.

7. Structural problems remain
CBN policies cannot independently solve:

insecurity affecting farming and transportation;

unreliable electricity;

poor roads and logistics;

low industrial productivity;

unemployment and underemployment;

corruption and inefficient government expenditure;

insufficient healthcare and education;

weak social-protection systems.

The IMF has specifically noted that insecurity continues to hurt agriculture, investment and oil production. It estimated poverty at about 63% using Nigeria’s national poverty line, with approximately 27 million people facing food insecurity in late 2025.

The proper conclusion
The CBN’s achievements are not necessarily false. Rising reserves, a narrower official–parallel exchange-rate gap and declining inflation can indicate that an economy is moving from crisis toward stability.

But stability is only the first stage. It does not automatically produce prosperity.

For Nigerians to feel the improvement, macroeconomic stability must be followed by:

sustained reduction in food and transportation inflation;

wage and income growth above inflation;

greater agricultural and industrial production;

affordable electricity and business financing;

productive employment;

efficient use of increased government revenue;

targeted assistance for vulnerable households.

In simple terms: Nigeria’s financial indicators may be recovering, but household incomes, employment and public services have not yet recovered enough to compensate for the enormous loss in purchasing power experienced during the reform period.


This is what I found out

Foreign exchange reserve is the economic backbone sustaining the exchange rate

omoredia:
Alot of it is being stolen already. With the war in iran it should be over 100 billion by now. They aren't giving excuses that there is no revenue now. Watch them come up with other excuses.

$100 billion in magics or imaginations?