Nigeria government has just signed the 30,000 naira minimum wage into law. What economic value will it have on Nigerians? Dollar equivalent to Naira is 360 approx but on the last increase of the minimum wage, the dollar was 165 naira equivalent. Has this increase...? https://nibernet.com/question/with-the-fall-in-naira-will-the-minimum-wage-increase-have-economic-value-to-nigerian/#respond

It's better than nothing

Sure, it'll make economic value.

1.... the people will have higher purchasing power, forget d other thread dollar brouhaha. Nigeria has d second highest currency by PPP in d continent.

2.... Standard of living of people will get better since the minimum wage is targeted at those earning the least salaries in d country.

3... it'll pull people out of extreme poverty. 30,000naira is $83, if divided by 30days, it gives $2.7 a day. We're currently living on $1.6 per day as per d 18k, since extreme poverty rate is living below $1.9 per day, we'll pull millions of people out of poverty.

4.... tax revenue will also increase, more tax revenue for d govt will make spending on infrastructures easier.

It has many economic value.

With the fall in Naira, will the minimum wage increase have economic value to Nigerian? (A reply on nibernet.com)

Nigeria government has just signed the 30,000 naira minimum wage into law. What economic value will it have on Nigerians? Dollar equivalent to Naira is 360 approx but on the last increase of the minimum wage, the dollar ...https://nibernet.com/question/with-the-fall-in-naira-will-the-minimum-wage-increase-have-economic-value-to-nigerian/?show=oldest#comments

theenchanter:
Sure, it'll make economic value.

1.... the people will have higher purchasing power, forget d other thread dollar brouhaha. Nigeria has d second highest currency by PPP in d continent.

2.... Standard of living of people will get better since the minimum wage is targeted at those earning the least salaries in d country.

3... it'll pull people out of extreme poverty. 30,000naira is $83, if divided by 30days, it gives $2.7 a day. We're currently living on $1.6 per day as per d 18k, since extreme poverty rate is living below $1.9 per day, we'll pull millions of people out of poverty.

4.... tax revenue will also increase, more tax revenue for d govt will make spending on infrastructures easier.

It has many economic value.

I love your analysis. But this would have been fairer for Nigerians if the increase doubles the minimum wage value. That would have been productive. Check this out. 18,000 @$165 and 30,000 @$360. It's a fall. What would have been the living standard of Nigerians if the minimum wage increase is 30,000 @$165 or 36,000 @$330? The living standard of Nigerians may not have improved with a more than 100% fall of Naira against the dollar and the minimum wage is less than the value of the previous wage. I'm not an economist but I just lent my thought.

IzuomaIbe:


I love your analysis. But this would have been fairer for Nigerians if the increase doubles the minimum wage value. That would have been productive. Check this out. 18,000 @$165 and 30,000 @$360. It's a fall. What would have been the living standard of Nigerians if the minimum wage increase is 30,000 @$165 or 36,000 @$330? The living standard of Nigerians may not have improved with a more than 100% fall of Naira against the dollar and the minimum wage is less than the value of the previous wage. I'm not an economist but I just lent my thought.

thank u sir..... its almost not important to convert our currency to dollar in order to note d state of economy cos dollar is meant for international market while we spend majority of our salaries on local commodities like food, housing and shelter.

If u check d price of commodities when d salary was 18k and dollar at 165, then compare it with what u'll get when the salary is 30k and dollar at 360, u'll see that the prices of commodities will/may get higher in naira but lower in dollar, for example.

Check the prices of food, housing and shelter and compare the two salaries with their corresponding dollar rate and see for urself.

Dollar is only used when buying products from international market but not really important when we buy nigerian products. And u know that we spend majority of our salary on nigerian products.

Nah it won't simple and short why are all of you speaking big big grammar

IzuomaIbe:


I love your analysis. But this would have been fairer for Nigerians if the increase doubles the minimum wage value. That would have been productive. Check this out. 18,000 @$165 and 30,000 @$360. It's a fall. What would have been the living standard of Nigerians if the minimum wage increase is 30,000 @$165 or 36,000 @$330? The living standard of Nigerians may not have improved with a more than 100% fall of Naira against the dollar and the minimum wage is less than the value of the previous wage. I'm not an economist but I just lent my thought.

To a large extend you are correct . The increment on the minimum wage will have no much effect if there are no price control mechanism in place. If we continue to import more while exporting less the price of dollar might increase on the long run. With the current rate howering around $330 -$350, the price will shot up. All these artificial means to sustain the economy will not work on the long run. Increment in the minimum wage is wasted effort if the above are not checked because workers will keep on agitating for more pay.

asuustrike1:

To a large extend you are correct . The increment on the minimum wage will have no much effect if there are no price control mechanism in place. If we continue to import more while exporting less the price of dollar might increase on the long run. With the current rate howering around $330 -$350, the price will shot up. All these artificial means to sustain the economy will not work on the long run. Increment in the minimum wage is wasted effort if the above are not checked because workers will keep on agitating for more pay.

Your thoughts are cool. On nibernet.com we impart and learn from others thereby adding to world knowledge.

Bella55555:
Nah it won't simple and short why are all of you speaking big big grammar

Thank you @Bella55555

IzuomaIbe:

Thank you @Bella55555

you're welcome

theenchanter:
Sure, it'll make economic value.

1.... the people will have higher purchasing power, forget d other thread dollar brouhaha. Nigeria has d second highest currency by PPP in d continent.

2.... Standard of living of people will get better since the minimum wage is targeted at those earning the least salaries in d country.

3... it'll pull people out of extreme poverty. 30,000naira is $83, if divided by 30days, it gives $2.7 a day. We're currently living on $1.6 per day as per d 18k, since extreme poverty rate is living below $1.9 per day, we'll pull millions of people out of poverty.

4.... tax revenue will also increase, more tax revenue for d govt will make spending on infrastructures easier.

It has many economic value.

You dont know what ur explaining...ur suffering from " money illusion"