In 2019, Nigerian columnist Abimbola Adelakun began asking volunteers about their household income, and the responses were eye-opening. Most families were surviving on a pittance, with limited life choices, and a heightened sense of desperation. Adelakun concluded that for Nigerians to live a modicum of the good life, each family must earn at least N500,000 monthly. At the time, this sum was around $1,400.
Fast forward to 2026, in President Bola Tinubu's de-subsidized economy, N500,000 now roughly equals $375. Workers in Nigeria have been demanding a salary review to match current realities, and the agitations will ramp up in the coming months. They are setting the new minimum wage at N500,000, which is merely a good start. This amount will offer some momentary relief from an economic situation that has become punishing.
Nigerians have gone through many hard times, from the days of Muhammadu Buhari's policies to Tinubu's neoliberalism. It is high time their purchasing power is increased. With the de-subsidization of fuel, Nigerians have been made to face the harshest effects of rising global energy prices without the concomitant benefits. The price of oil per liter currently stands at N1,430, with an attendant multiplier effect on other costs of living.
There is an ongoing discussion about poverty in Nigeria, but it often gets mired in partisan arguments. Some, like Reno Omokri, argue that an average Nigerian can survive on a mere N3,000 daily. Others, like the special adviser to the President, claim that a modest family can feed for several days with N10,000. These arguments are limited, focusing only on basic survival rather than the quality of life.
In 2023, the eligibility guidelines for accessing student loans stipulated that the student or their family must not earn more than N500,000 per annum. This provides some insight into how official sources understand poverty, but it is still limited. According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, N250,000 monthly household income is the poverty level.
Oyedele's calculations indicate that with N250,000 ($188) for a family of five, each person has roughly $37.5 monthly and $1.25 per person per day. This reflects a more realistic grasp of the poverty level in Nigeria. The government's successive administrations spend more time arguing over what constitutes poverty than redressing it.
Raising the minimum wage to N500,000 for government workers is a step toward addressing poverty. The money will not make anyone rich, but it will provide some reprieve. People currently spend about 80-100 percent of their income on basic items, leaving little for non-daily expenses like housing, healthcare, and education. Higher salaries will also redistribute some of the lush monies state governors receive to people at the grassroots level.
Key points
- A minimum wage of N500,000 is necessary for Nigerians to live a decent life.
