Living Wage Series - Nigeria, August 2017 - NGN per Month

Living wages, Wages in context - Nigeria

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator calculates Living Wage for around 50 countries based on prices collected within the WageIndicator Cost of Living Survey. The Living Wage calculated by WageIndicator is composed of seven parts: food, housing, transport, health, education, tax and other costs.

WageIndicator presents Living Wages for several household types and working hours to respond to different demands for living wage information: Typical family Living Wage is a baseline estimate that respects the country specific conditions. Family includes two adults and the number of children is given by country specific fertility rate (5.7 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (66% in 2017). Standard family Living Wage is estimated for a family composed of two adults and two children. One parent is employed full-time and the second parent works 4 days a week it means family employment rate is 1.8. Single-adult Living Wage represents an acceptable standard of living for a single individual working full-time with no dependents.

Expenditure and Living Wage calculation (monthly rates in NGN)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 118600 154100 61600 80000 15400 20000
Housing 10000 15000 10000 15000 6000 8000
Transport 7000 14000 7000 14000 3500 7000
Health 5000 7000 5000 7000 1250 1750
Education 3000 5000 3000 5000 0 0
Other costs 7180 9760 4330 6050 1310 1840
Total Expenditure 150780 204860 90930 127050 27460 38590
Net Living Wage 88694 120506 50517 70583 27460 38590
Gross Living Wage 97564 132556 55568 77642 30206 42449

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in NGN)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of common household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 5.7 children, 1.7 working) 97600 132600
Standard family (two parents + 2 children, 1.8 working) 55600 77600
Two parents and two children, 2 working 50000 69900
Two parents and two children, 1.5 working 66700 93200
Two parents and two children, 1 working 100000 139800
Two parents and three children, 1.7 working 69300 95800
Two parents and four children, 1.7 working 79800 109400
Single-adult without children, 1 working 30200 42500

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in NGN)

Living Wages are presented in context with other wage indicators including minimum wage, poverty line, and various prevailing wages of workers. Table shows the development of income levels over two years.

mw7-12/20151-6/20167-12/20161-6/2017
  . from to from to from to from to
Living Wage - Typical Family . . . . . 94700 132800 97600 132600
Living Wage - Single Adult . . . . . 30600 43900 30200 42500
Subjective living costs for 2+2 family . . . . . 53900 71000 56000 74300
Real wage of medium-skilled worker . 27400 45600 27400 45600 27400 45600 27400 45600
Real wage of high-skilled worker . 34200 56900 34200 56900 34200 56900 34200 56900
  . . . . . . . . .

Note: Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web surveys on work and wages over the last 36 months. Results in the table are rounded.

Living Wage model diet and food prices in NGN

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food itemGrams per dayEnergy (kcal)Price per kilo fromto
Wheat, barley and cereals 169 487 340 500
Rice 63 230 280 320
Meat (beef, pork, poultry) 22 36 850 1150
Oils (soyabean, olive, palm) 25 221 320 380
Sugar (Raw Equivalent) 23 81 300 350
Maize and products 72 230 120 180
Milk - Excluding Butter 18 10 560 700
Vegetables, Other 102 27 200 400
Potatoes and products 10 7 400 500
Butter, Ghee 1 7 750 825
Groundnuts (Shelled Eq) 17 56 500 600
Pulses, Other and products 25 86 1630 1750
Cassava and products 263 212 100 100
Egg (price per 10 eggs) 8 10 5330 300
Sunflowerseed Oil 0 0 500 640
Fish products 36 21 800 1200
Beer 34 16 500 560
Beans 0 0 240 300
Sweet potatoes 31 30 100 200
Soyabeans 6 23 180 200
Yams 232 233 800 1000
Apples and products 0 0 500 899
Tomatoes and products 22 5 400 500
Onions 17 5 100 300
Oranges, Mandarines 0 0 30 30
Plantains 35 32 300 500
Peas 0 0 800 1200
Roots, Other 20 17 739 1000
Seeds and kernels 0 1 400 500
Wine 0 0 933 1067
Pineapples and products 16 4 280 300
Cream 0 0 450 850
Olives (including preserved) 4 15 . .
Honey 0 0 1000 1200
Coffee and products 0 0 3170 4900

Data sources:

Living Wage FAQ.

WageIndicator Cost of Living Survey

World Bank Databank, Fertility rate – average births per woman in years 2010-2014

ILO, Estimated participation rate in 2017

FAO, Food balance sheet in 2013 

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