Nigerian workers have lost at least 25 per cent of their real income in the past year as the general price crisis and rising cost of living continue to deplete the value of their wages, raising concerns about the survival of low-income employees.

Adjusted for inflation, the N70,000, the wage floor would have lost about N17,000 of its real value by July (a year after it was signed) supposing the inflation rate remains at its current speed – 24 per cent. This leaves a worker on a minimum wage with N53,000 in real terms to take care of their basic needs.

The high inflation rate raises major concern even with the labour leaders, who fought hard to get a decent minimum wage lamenting that the current salary structure takes public workers to offices every working day of the moment.

Already, public workers who have been pushed to the edge are adopting different strategies to reduce the burden of transportation, including workday rationing. There are fears the trend could further drain the productivity of public workers, who are poorly equipped to work virtually.

But the cost-of-living crisis is much deeper. In nominal terms, 70,000 is over 100 per cent higher than 30,000. But in real terms, N30,000 as of 2018, when it was set at the national monthly wage floor, was more valuable than 70,000 as it is today.

In 2018, the average price of a medium-sized dozen eggs sold for about N494.43.

Today, a crate of the same eggs costs N6,000. That means N70,000 can only buy 11.6 crates of eggs while N30,000 at an average cost of N500 could buy 60 crates.

Supposing a minimum wage earner consumes only eggs, he would need N360,000 to get the same quantity of eggs N18,000 minimum wage would buy in 2018 (seven years ago). With less protein, which eggs provide, children raised today could suffer poor protein intake, which could compromise their future productivity.

A substantial increase in food spending in the proportion of household income that goes into food because of high prices of consumables, less money would be left for investment in education and health – the two most critical factors that determine the long-term productivity level of a country.

In 2018 also, the average price of one kilogramme of tomatoes was N271. The same quantity is worth more than N5,000 today. That means one would need to increase one’s income 18 times in the past seven years to retain the same level of welfare if that is measured by the consumption of tomatoes only. However, the nominal minimum wage has only increased by 133 per cent.

One kilogramme of imported rice was N360 in 2018 now costing N1,640 which is more than a 500 per cent increase.

The average price of one kilogramme of yam tuber was N250 in 2018. But it now costs more than N3,000 or a 1,100 per cent increase.

Also, the yearly rent of one-bedroom in Lagos downtown was about 200,000 in 2018. A young single employee will need to raise the budget by fourfold to at least N800,000 to pay for the same apartment.

These show how much naira has lost its value. It also underscores the paradox of higher pay, which the new minimum wage represents.

The undercurrent of the fast-depreciating value of the naira and everything that it represents in terms of purchasing power will dominate speeches at May Day rallies across the country today as the country joins the rest of the world to mark May Day.

Giving a snippet into what labour May Day speeches, the Nigeria Labour Congress (NLC) President, Joe Ajaero, lamented the inadequacy of N70,000 minimum wage when he said workers no longer go to work for five days in a week.

He argued that N70,000 is not enough to transport workers to work for 24 days in a month while speaking at the 6th National Gender Conference organised by the NLC National Women Commission in Abuja.

He decried the impact of rising school fees, house rent, transport fare, food and medicine, saying the trend portends danger for Nigerian workers.

Indeed, the agitations had begun ahead of the Workers’ Day. The immediate past Deputy National President of the Trade Union Congress of Nigeria (TUC), Dr Tommy Okon, said there is a need for the economic managers to review their economic policies, stating that going by the poverty index, vis-a-vis inflationary trend and high cost of living, there is no way one could justify that current policies give workers any hope.

He said even though the policies have a gestation period, for two years now, workers are still submerged in poverty.