Below is information regarding the consequences of the minimum wage increase in Nigeria.
There is a significant reduction in the prices of foodstuffs. Last year NBS Figures of composite Food Index stood at 17.39 percent. It has not released figures yet, but I see the possibility of agreeing with it this time around. I have always had issues with NBS on its inflation figures.
Price of electricity will go up. The DISCOS had said it and are just taking their time and will soon start implementation.
The president has just signed a new finance bill into law that will increase VAT to 7.5%. This will increase cost of all manufactured goods and raise inflation that will further devalue the Naira.
Those celebrating minimum wage will now understand my write-ups. Those that earn no wages at all go hear am ta-ta-ta (apologies to Kogi women).
Now let’s check how much a 50kg bag of rice that was 20-22,000 before and is now sold for 14-15,000 will cost. I am talking of local rice o. Foreign rice has gone into ambush. If you want it you better know the cost and benefits.
Customs now seize even one bag on our roads,so be careful how you transport it. The way Hamidu Ali is going about it one day they will even knock our doors and pull foreign rice from the kitchen. And I was authoritatively told both Ali and the president eat foreign rice. Chai!
Well let’s say local rice has come to the rescue. But the problem is that most of it is filled with sand and stones. Please let us know the quality and prices around your area.
A crate of egg that was 900 is now 1000. A medium live chicken that was 1200 is 1500. Loaf of bread that was 200 is now 300. Whole wheat is 400 to 800. Let’s compare prices please.
In respect to energy, petrol that was 145/ltr is still 145. Kerosene has totally disappeared. If price of crude keeps rising I fear that the government will increase prices of petroleum products.
Cooking gas that was 3500 per 12.5kg is now 4000, while diesel that sold for 150 before is now selling for 240/ltr. With price of crude jumping up, a deregulated AGO can go as high as 300 per liter. This will surely increase cost of production and manufacturers will surely pass it to consumers.
By Aliyu Nuhu