Living Wage Series - Nigeria, October 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 uses prices from the Cost of Living Survey to calculate Living Wage for 60 countries. The Living Wage is an approximate income needed to meet a family’s basic needs including food, housing, transport, health, education, tax deductions and other necessities.

The following table summarises the varying expenditure and income needs for the three commonly occurring family household compositions.

Expenditure and Living Wage calculation (monthly rates in Naira)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 118600 154900 61600 80500 15400 20100
Housing 10000 15000 10000 15000 5220 6830
Transport 6000 12000 6000 12000 3000 6000
Health 5000 7000 5000 7000 1250 1750
Education 3000 5000 3000 5000 0 0
Other costs 7130 9700 4280 5980 1250 1740
Total Expenditure 149730 203600 89880 125480 26120 36420
Net Living Wage 88076 119765 49933 69711 26120 36420
Gross Living Wage 96900 131700 54900 76700 28700 40100

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in Naira)

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 most common family household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 5.7 children, 1.7 working) 96900 131700
Standard family (two parents + 2 children, 1.8 working) 54900 76700
Two parents and two children, 2 working 49400 69000
Two parents and two children, 1.5 working 65900 92000
Two parents and two children, 1 working 98900 138000
Two parents and three children, 1.7 working 68600 94900
Two parents and four children, 1.7 working 79100 108500
Single-adult without children, 1 working 28700 40100

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in Naira)

The Minimum Wage is a national legally binding obligation on employers which often make no reference to a living standard. Living Wage describes the adequate living standard. The common goal of the many living wage campaigns currently taking place all over the world is to lift Minimum Wages levels to those of the Living Wages. WageIndicator presents Living Wages jointly with Minimum Wages, aiming to raise awareness concerning the remaining differences in levels. Living Wages are presented in context with other wage indicators including prevailing wages of workers over recent years.

  2014 . 2015 . 2016 . 2017 .
  from to from to from to from to
Minimum wage 18000 18000 18000 18000 18000 18000 18000 18000
Living Wage - Single Adult . . . . . . 28700 40100
Living Wage - Typical Family . . . . . . 96900 131700
Real wage of low-skilled worker . . . . . . 17800 25500
Real wage of medium-skilled worker . . . . . . 27400 46100
Real wage of high-skilled worker . . . . . . 34300 57200

Note: Table shows the lowest monthly Minimum Wage in a country, when available. Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web survey on work and wages. Results in the table are rounded.


Food basket and food prices in Naira

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 1100
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 10 267 300
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 0 500 850
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

WageIndicator Living Wage background:

The WageIndicator Living Wage is set to provide acceptable living standard to a family of a particular size. WageIndicator presents Living Wages for several household types and working hours which reflect the most frequently found real situations in which people have to make a living: 1. Typical family Living Wage is a baseline estimate that respects the country specific conditions. Typical family is comprised of two adults and the number of children is given by country specific fertility rate (the average number of children a woman is expected to have during her lifespan). One adult is working full-time and the working hours of second adult are approximated by national employment rate. The total income earned by two adults paid living wage is sufficient to reach adequate living standard. 2. Standard family Living Wage is estimated for a family composed of two adults and two children (referred to as family 2+2). Living wage is calculated under different assumptions about working hours. These include that both adults work full-time (family employment rate is 2), or at least one adult works part-time or half-time (family employment rate is 1.8 and 1.5), or one adult does not work at all (i.e. patriarchal model with family employment 1). Alternatives refer to trade-offs between leisure and work and define what living wage represents. In every case the total income earned by two adults paid living wage is sufficient to reach adequate living standard. 3. Extended family Living Wage includes family with three or four children. One adult works full-time and the work intensity of second parent is approximated by national employment rate. 4. Individual Living Wage represents an acceptable standard of living for a single individual working full-time.

Data sources: WageIndicator Cost of Living Survey, World Bank Databank Fertility rate 2010-2014, ILO Estimated participation rate in 2017, FAO Food balance sheet in 2013.

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