Consistent drop in the value of Nigeria’s local currency, the Naira, coupled with rising inflation has eroded the take home pay of many employed Nigerians in the last two years, Blueprint has gathered.
According to analysis, the Dollar value of Nigerian workers salary shows a drop of 24.5 percent since the N30, 000 National Minimum Wage took effect.
On Thursday April 18, 2019 when the minimum wage law was signed by President Muhammadu Buhari, the naira closed the month of April at the Bureau de Change forex market with an average exchange rate of N359 to the dollar, data from Central Bank of Nigeria shows.
Two years later, the Naira has dropped in value by N117.05(32.60 percent) to N476.05 against the dollar as at February 2021 monthly average, thus indicating the dollar value of N30,000 is now $63 compared to $82 in 2019.
In the same period, also at the Inter-bank Foreign Exchange Market, Naira lost its value to dollar by N20.
In February 2021, Naira exchanged to the dollar on an average rate of N381 from N361 average exchange rate in April 2019. This shows $78.7 as the monthly salary from $83.10 in April 2019.
For a Nigerian whose salary has not improved since April 2019, he or she will also have to find a way to deal with the rising inflation during the same period under review.
Compounding the issue, on Thursday, April 1, 2021, Naira closed at N485.00 to the dollar at the black market, this represents N1.00 or 0.21 percent appreciation from N486.00, the rate it exchanged the previous day, according to data posted by Aboki fx.
However, currency of Africa’s largest economy at the official market, the Investor and Exporters window, data posted on FMDQ Securities Exchange on Thursday showed a devaluation.
Naira closed to the dollar at the official market, at N409.30 from N408.67 the rate at which it closed on Wednesday. This represents N0.63 or 0.15 percent drop in value.
Participants at the official market maintained bid for the dollar between N401.10 and N413.00, before closing at N409.30.
At the weekend, the gap between the unofficial market and the I&E exchange rate is now at N75.70.