There is a notion amongst foreigners that Nigeria is a cheap place to live, especially when they compare the cost of living in Nigeria to that of their country. Also, many Nigerians–and this is not exclusive to Nigerians alone because many third-world countries are guilty of this as well–paint this same narrative, which is one of the reasons we are underpaid for service in the global community.
I have a friend who works for an intentional organisation and earns less than his colleagues. This doesn't perturb him because the cost of living in Nigeria is less and that is understandable. This also brings into question the idea of equity and equality. However, I want to use this opportunity to examine or explain what it entails to live and work in Nigeria from the perspective of a Nigerian living in Nigeria.
So the current minimum wage in Nigeria is 30,000NGN (and 45,000NGN). This is less than $50 dollars. This is grossly insufficient for the average individual. According to [reports(https://www.picodi.com/ng/bargain-hunting/minimum-wage-2022)], the primary food consumption of an adult in a month is twice the minimum wage. The only people living on $50 monthly are the extremely poor, which unfortunately make up a sizable portion of the Nigerian population. However, in urban cities like Lagos, Abua, Port Harcourt, etc it isn’t feasible.
The purchasing power of the average Nigerian is down by 100%
Today
— Dr. Tayo Oyedeji (@tayooye) September 28, 2022
$1:N735.
18 months ago
$1: N325
Every Nigerian just got >100% poorer.
To put things into perspective, a car bought about a year ago is twice its value in naira and we all know cars are depreciating assets, so why is its value going up? Well, there are a couple of things. For starters importing older model cars into Nigeria costs twice the amount for newer models.
However, most Nigerians cannot afford to buy newer models due to their low purchasing power. This increases the demand and scarcity for older model cars. Plus, there are few car financing companies in Nigeria. As advanced as many western countries, people need these sorts of financial aid to afford it.
Recently, the Central Bank of Nigeria increased interest rates in their bid to curb inflation, and just like other policies of the federal government, this is only going to make this worse. Most Nigerian households now depend on loans to survive, coupled with a lot of business. So, in my opinion, this is only going to increase the cost of goods and services. This new interest will deter people from borrowing or spending because many households are living on the edge and cannot afford to save or even cut down on their very frugal spending.
Living in Nigeria isn’t cheap especially if you are earning in the local currency, as your purchasing power discretion by more than 2 per cent monthly while your income remains the same or even less.
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So please when next you are hiring a Nigerian, do well to pay well for his/her services. No one here lives on less than $50 a month, even the beggars on the street. Maybe 2-3 years ago that was feasible but not now. To have a decent life in Nigeria currently, you need to earn above $1500 monthly. This might be cheap in relation to some other countries but not $50 cheap (you get my point?). Cheers!