DATAPHYTE
The Governor of Edo State, Godwin Obaseki, announced an increase in the minimum wage for workers from N40,000 to N70,000. In his words, it is aimed at cushioning the effects of inflationary pressures on civil servants.
The question in the minds of many is, what can N70,000 actually buy in Edo State?
Let’s start with basic food items.
Nigerians spend a larger percentage of their income on food. Data from the NBS Consumption Expenditure Pattern in Nigeria showed that in 2019, Nigerians spent 56.6% of their total expenditure on food.
Considering that a larger portion of Nigerians’ income was spent on food in 2019, particularly when food inflation was at 14.6%, one wonders how much N70,000 can cover now that food prices have increased multiple folds and food inflation has surged to 40%.
The average household size in Nigeria is 5 persons.
Let’s assume there’s a family of 5 comprising two adults, each earning the minimum wage of 70,000, with three dependants.
The total income for this family is N140,000.
Based on the NBS sampled Food Prices in March 2024 in the South-South parts of the country, where Edo State is, N140,627 can only buy these many items for a family of five in the state:
