According to the World Bank, Nigeria’s rising inflation rate has resulted in a 55% reduction in the minimum wage and a 5 million increase in the number of poor people by 2022.
This was made public at the Corporation’s launch of the Nigeria Development Update for December 2022 Edition on Thursday, as well as at the Country Economic Memorandum held in Abuja on Thursday. While the minimum wage in Nigeria is currently N30,000, the World Bank estimates that it is currently N19,355.
The World Bank’s announcement comes on the same day that the National Bureau of Statistics (NBS) announced that inflation in Nigeria increased by 21.47 percent in November, the highest level in at least 17 years and the tenth time in a row in 2022.
Advertisement: According to the World Bank, citizens’ incomes are being impacted by rising inflation, with low-income households and public servants bearing the brunt of the burden.
SEE ALSO: In his presentation, World Bank Chief Economist Alex Sienaert said that in real terms, the N30,000 is now worth N19,355 ($26). He also said that over the past decade, macroeconomic stability has steadily deteriorated, which has eroded growth potential and hindered the goal of reducing poverty.
According to him, Nigeria has the resources and potential to accelerate growth and eradicate poverty; however, the country’s current policy framework impedes economic expansion and job creation due to barriers posed by multiple exchange rates, protectionist policies, and trading restrictions.
He stated, “Nigeria’s future looks bleak, per capita income will plateau, Nigerians will not have a full-time job by 2030, and if the employment rate does not improve, 23 million more Nigerians will live in extreme poverty by 2030.” “If structural reforms are not implemented, Nigeria’s future looks bleak.”
Sienaert also emphasized the necessity of reforms such as the implementation of a single, market-reflective exchange rate, the elimination of the gasoline subsidy, the reduction of unrest, and, among other things, the expansion of non-oil revenue through taxes.
He stated that “unlocking private investment can generate economic opportunities for Nigeria’s growing population, accelerate structural transformation, and promote the diversification of its economy.”