Fuel Prices in Nigeria: A Heavy Burden on Minimum Wage Earners – Chidoka
Former Minister of Aviation, Osita Chidoka, has highlighted the disparity between fuel prices and minimum wage earnings in Nigeria. Chidoka shared his personal experience, spending ₦100,000 on fuel for his Lexus 460 jeep, which is ₦30,000 more than Nigeria’s minimum wage of ₦70,000.
This stark reality raises concerns about the affordability of basic necessities for low-income earners. A minimum wage earner in Nigeria, working 8 hours a day for 20 days a month, earns approximately ₦437.5 per hour. This translates to 2.6 hours of work to afford just one litre of petrol, priced at ₦1,140.
In contrast, minimum wage earners in Egypt and South Africa fare better. In Egypt, fuel costs ₦443 per litre, and the monthly minimum wage is ₦202,400 (₦1,265 per hour), requiring only 21 minutes of work to buy a litre. In South Africa, fuel is ₦2,480 per litre, and the minimum wage is ₦395,824 (₦2,320 per hour), taking 1 hour and 4 minutes to purchase a litre.
Chidoka’s analysis underscores the need to reassess Nigeria’s economic growth and production strategies. “Fuel prices in Nigeria may not be high by global standards, but it appears incomes are too low to sustain meaningful consumption,” he noted.
This disparity highlights the challenges faced by low-income Nigerians, struggling to make ends meet amidst rising fuel prices and stagnant wages. As the country navigates its economic landscape, policymakers must prioritize strategies to boost earnings and reduce the burden on minimum wage earners.
