Report reveals that Nigeria’s minimum wage has been eroded by over 40% due to inflation in the country. The report, conducted by Afrinvest (West Africa) Limited, showed that since the national minimum wage was increased to N30,000 from N18,000 in 2019, the headline inflation rate index has risen by about 68.3 percentage points from 2019 year-end to 517.39 points in February 2023.

Adjusting the value of the minimum wage rate for inflation over this period indicates that the purchasing power of the average household has been eroded by 40.6%.

The report also revealed that the share of final consumption expenditure of the average household in the inflation-adjusted national disposable income is about 71.3%, implying a 3.9 percentage points reduction from the level last reported by the National Bureau of Statistics (NBS) in the first half of 2021.

The report recommends a modest upward review of the national minimum wage rate combined with efforts to boost output levels to mitigate the impact of the pressured macroeconomic fundamentals and improve the living standards of citizens.

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