Why Your Fat Salary Means Nothing When Naira is Suffering

Photo: The Punch

Imagine this scenario: Your boss calls you into the office tomorrow and says, 'Congratulations! We're increasing your salary to N1 million per month.' You're dancing, right? But wait small – what if that same N1 million can only buy you what N200,000 used to buy last year? That's exactly the point Nigeria Labour Congress (NLC) President Joe Ajaero is making, and honestly, the man is speaking facts.

The Real Talk About Money and Value

Ajaero recently dropped some serious wisdom when he said that even if Nigerian workers start earning N1 million monthly, it's basically useless if our naira continues to dey suffer like this. The man understands something many of our leaders seem to miss – it's not about how much money you have in your account, it's about what that money can actually do for you.

Think about it like this: Remember when N100 could buy you a decent meal on campus? Now, N100 can barely buy you pure water and groundnut. That's what we call purchasing power erosion, and it's eating deep into every Nigerian's pocket, whether you're earning N50,000 or N500,000 monthly.

How Ordinary Nigerians Are Feeling the Heat

Let me paint you a picture of what's happening on ground level. Mama Ngozi sells rice and beans in Alaba Market. Last year, she could buy a bag of rice for N18,000 and sell it comfortably. Today, that same bag costs her N65,000. Even if you increase her customer's salaries by 200%, they still can't afford to buy the same quantity of rice they used to buy.

Or take Brother Emeka, a civil servant in Abuja earning N150,000 monthly. In 2020, his salary could cover his rent (N50,000), transportation (N15,000), food (N40,000), and still have something left for savings. Today, with the same salary, his rent has jumped to N120,000, transportation costs N35,000, and food alone takes N80,000. The math is not mathing!

The Domino Effect Nobody Talks About

When the naira weakens, everything becomes expensive – and I mean everything. Your fuel price goes up because we import petroleum products. When fuel price increases, transportation costs skyrocket. When transportation costs rise, the price of goods in the market automatically increases because traders factor in the cost of bringing those goods to market.

Even locally produced items feel the heat because most manufacturers depend on imported raw materials or machinery. So that Indomie noodles made in Nigeria still becomes expensive because the company imports some of its raw materials using dollars.

Why Salary Increases Alone Won't Cut It

This is where Ajaero's argument makes perfect sense. If you increase minimum wage from N30,000 to N100,000, but the naira loses 70% of its value against the dollar in the same period, workers are actually worse off than before. It's like giving someone a bigger bucket to fetch water from a well that's drying up.

The NLC President knows that fighting for higher wages without addressing currency stability is like treating headache when the real problem is malaria. You might get temporary relief, but the underlying issue remains.

Real Examples of Purchasing Power Wahala

Let's look at some practical examples that every Nigerian can relate to:

• School Fees: A private university that charged N500,000 in 2020 now charges N1.5 million for the same program. Even if your salary doubled, you're still paying more in real terms.
• Housing: Rent in Lagos mainland areas that cost N300,000 annually now goes for N800,000. Your landlord isn't being wicked; he's also feeling the economic pressure.
• Basic Food Items: A basket of tomatoes that cost N2,000 now costs N6,000. Even if market women's income increased by 100%, they're still worse off.

What This Means for Economic Policy

Ajaero's statement is basically a wake-up call to policymakers. Instead of just focusing on nominal wage increases, the government should prioritize policies that strengthen the naira. This includes:

Reducing our over-dependence on imports by boosting local production. When we produce more of what we consume locally, we reduce the demand for foreign currency, which helps stabilize the naira.

Diversifying our economy beyond oil exports. Countries that depend solely on one export commodity are always at the mercy of global market fluctuations. We need to develop our agriculture, technology, and manufacturing sectors.

The Bottom Line

At the end of the day, Ajaero is speaking the language of economic reality. You can pay Nigerian workers N10 million monthly, but if bread costs N50,000 and a bag of rice costs N200,000, those workers will still be struggling to survive.

The real solution isn't just higher wages – it's creating an environment where the naira can hold its value and where Nigerians' purchasing power increases alongside their nominal income. Until we fix the fundamental economic issues affecting our currency, salary increases will continue to be like pouring water into a basket.

As we say for this side, 'Na small small dey build house.' Fixing Nigeria's currency challenges won't happen overnight, but acknowledging the problem – like Ajaero has done – is definitely a step in the right direction.