According to the latest 2024 Minimum Wages report by Picodi, Nigeria has emerged as one of the top five countries with the highest growth in minimum net monthly wage within a year.
The report analyzed changes in minimum wages across 67 countries, comparing monthly minimum wages for full-time work from the beginning of last year to January 8, 2024.
Nigeria ranked third in the ranking, with the minimum net wage increasing to N55,000, marking an impressive 83.3% growth compared to the previous year’s N30,000. This significant increase places Nigeria among the leading nations in terms of wage growth.
While other countries such as France, Germany, and Thailand saw minimal rises in minimum wage, Nigeria’s remarkable increase stands out, with the highest growth recorded in at least five years. This surge in minimum wage aligns with recent trends in Nigeria’s economic landscape, where compensation of employees has seen notable growth, particularly in the private sector.
Muda Yusuf, CEO of the Centre for Promotion of Private Enterprises, noted that many private sector companies have adjusted their compensation packages to reflect inflationary trends. This upward trajectory in wages has also contributed to increased household consumption, as reflected in the positive real growth rate recorded in Nigeria’s economy.
However, despite the significant wage growth, challenges remain, especially regarding inflation and the affordability of essential goods. The total cost of the “survival basket,” comprising basic food items, has risen by 33.1% compared to last year, posing affordability concerns for minimum wage earners.
Analysts at Picodi Nigeria highlighted that the survival basket now represents 116.5% of the net minimum wage, indicating that the wage increase has somewhat kept pace with rising food prices. Nonetheless, Nigeria still lags behind other countries in terms of the affordability of basic necessities, with the survival basket accounting for a higher percentage of the minimum wage compared to many other nations.
While Nigeria’s minimum wage growth is commendable, there is a need for further economic reforms to ensure that wage increases translate into improved standards of living for all citizens.
