Opinion: Can Nigerian Workers Survive on N48,000 Minimum Wage?

The Federal government in Nigeria set the national minimum wage at N30,000 in 2019, and some state governments have been negotiating or implementing varying figures around this benchmark. Recently, there has been a push for an increase, with labor unions advocating for a new minimum wage of N48,000. However, the crucial question remains: Can Nigerian workers genuinely survive on a N48,000 minimum wage? This report examines the feasibility of this wage in supporting an average Nigerian worker, evaluates the cost of living, and proposes what might be a more reasonable minimum wage.

The Cost of Living in Nigeria

1. Housing:

• Rent varies significantly by location. In cities like Lagos and Abuja, rent for a modest one-bedroom apartment can range from N200,000 to N500,000 annually, translating to a monthly rent of N16,000 to N42,000.
• In less urban areas, rent might be lower, but still significant relative to N48,000.

1. Food:

• The cost of food is another major expenditure. A basic food basket for a small family could cost about N25,000 to N40,000 monthly. This includes staples like rice, beans, garri, vegetables, and some protein sources.

1. Utilities and Transportation:

• Electricity, water, and cooking gas can cost around N10,000 to N15,000 per month.
• Transportation costs depend on distance and mode. For a worker commuting daily, transportation could consume N10,000 to N20,000 monthly.

1. Healthcare and Education:

• Out-of-pocket healthcare expenses, even for basic ailments, can be significant without insurance, averaging N5,000 to N10,000 monthly.
• School fees for children, even in public schools, along with uniforms and supplies, can also be a considerable financial burden.

1. Miscellaneous:

• Other expenses such as clothing, communication, and emergencies should also be considered, potentially adding another N5,000 to N10,000 monthly.

Given these basic needs, a rough estimate of monthly expenses for a single worker or a small family could easily exceed N80,000 to N100,000, far above the proposed N48,000 minimum wage.

The Realities of Surviving on N48,000

1. Budgeting and Sacrifices*:

• Surviving on N48,000 would necessitate strict budgeting, cutting down on essential expenses, and forgoing many non-essential ones.
• Housing: Workers might be forced to live in substandard accommodations or share apartments to split rent costs.
• Food: Nutrition may suffer as workers opt for cheaper, less healthy food options.
• Healthcare: Inadequate funds might lead to neglecting healthcare needs or resorting to self-medication.

1. Debt and Loans :

• Many workers might resort to borrowing, leading to a cycle of debt, especially if emergency expenses arise.
• Informal loans from friends and family, or high-interest loans from lenders, could become common, exacerbating financial instability.

1. Impact on Quality of Life:

• The stress of financial insecurity can affect mental health and overall well-being.
• Workers might have to take on multiple jobs or engage in side hustles, reducing time for rest and family, potentially leading to burnout. Proposing a Reasonable Minimum Wage

To determine a more reasonable minimum wage, one must consider the living wage concept, which should cover basic living costs without requiring excessive work hours and allow for some discretionary spending.

1. Calculating a Living Wage:

• A living wage in Nigeria should factor in the average costs mentioned above.
• For a single worker, the living wage should be at least N100,000 to N120,000 per month to cover housing, food, transportation, healthcare, and other basic needs.
• For a worker supporting a small family, this figure might need to increase to N150,000 to N180,000 monthly.

1. Economic and Social Benefits:

• A higher minimum wage can improve workers’ standard of living, health, and productivity.
• Increased purchasing power can stimulate local economies as workers spend more on goods and services.
• Reducing financial stress can lead to better mental health and overall life satisfaction. Conclusion

While a minimum wage of N48,000 is an improvement over the previous benchmark, it remains insufficient for the average Nigerian worker to live a decent and dignified life. A more realistic and humane minimum wage would be in the range of N100,000 to N120,000 per month, accounting for the basic costs of living and allowing for some financial stability. Implementing such a wage would require collaborative efforts between the government, employers, and labor unions, but it is essential for fostering a more equitable and prosperous society.