Nigeria has been ranked number one in the world with respect to year-to-year increase in the minimum wage.
Concise News reports that according to a new report prepared by e-commerce firm, Picodi, as of January 2020, the highest year-to-year increase in the minimum wage was observed in Nigeria — 64.8 per cent (N16,200 in 2019 compared to N26,697 in 2020 for a full-time employee).
Still, when converted to US Dollars, Nigeria’s minimum wage is said to be one of the lowest ($74) among the 54 countries of the world where the national minimum wage exists.
The firm highlights in its report that ‘the minimum wage (in Nigeria) is so low that it does not cover the costs of even the most basic shopping basket (121.4 per cent of the minimum wage)’.
The shopping basket consists of eight items: bread, milk, eggs, rice, cheese, meat, fruits, and vegetables, which the firm believes will meet the nutritional needs of an adult.
“At the beginning of 2020, food prices from the list are as follows: Milk (10 liters) — N8,443; Bread (10 loaves, 500 g each) — N3,334; Rice (1.5 kg) — N1,002, Eggs (20) — N809; Cheese (1 kg) — N1,238; Poultry and beef (6 kg) — N8,357; Fruits (6 kg) — N4,588, Vegetables (8 kg) — N4,650.
“The total price of basic food products amounts to N32,421, which is 2.81 per cent more than in the previous year,” it said.
The only country that fell behind Nigeria is Uzbekistan with 253.8 per cent, the report, which was released on Tuesday noted.
Australia is ranked first in this comparison, followed by the United Kingdom (UK) and Ireland. In these countries, the basic food products are worth around 7 per cent of the minimum wage.
Picodi stressed that ‘depending on the country, the minimum wage concerns from few to several dozens per cent of the working population. By definition, the minimum wage should protect employees against unduly low earnings’.