Living Wage Series - Nigeria - December 2018 - In Naira, per Month

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 in more than 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 81100-106500 42100-55300 10500-13800
Housing 12500-20000 12500-20000 5070-7580
Transport 8000-9500 8000-9500 4000-4750
Health 5000-8000 5000-8000 1250-2000
Education 2700-4000 2700-4000 0
Other costs 5470-7400 3520-4840 1040-1410
Total Expenditure 114770-155400 73820-101640 21860-29540
Net Living Wage 67512-91412 41011-56467 21860-29540
Gross Living Wage 74300-100600 45100-62100 24100-32500

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) 74300-100600
Standard family (two parents + 2 children, 1.8 working) 45100-62100
Two parents and two children, 2 working 40600-55900
Two parents and two children, 1.5 working 54100-74500
Two parents and two children, 1 working 81200-111800
Two parents and three children, 1.7 working 55000-75200
Two parents and four children, 1.7 working 62100-84600
Single-adult without children, 1 working 24100-32500

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.

  2015 2016 2017 2018
Minimum wage 18000 18000 18000 18000
Living Wage - Single Adult - - - 24100-32500
Living Wage - Typical Family - - - 74300-100600
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.

Nigeria Graph

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 item Grams per day Energy (kcal) Price per kilo
Wheat, barley and cereals products 169 487 340-440
Rice 63 230 300-340
Meat (beef, pork, poultry) 22 36 900-1200
Oils (soyabean, olive, palm) 25 221 350-400
Sugar (Raw Equivalent) 23 81 270-300
Maize and products 72 230 150-180
Milk - Excluding Butter 18 10 600-800
Vegetables, Other 102 27 200-400
Potatoes and products 10 7 400-500
Butter, Ghee 1 7 1080-1200
Groundnuts (Shelled Eq) 17 56 400-400
Pulses, Other and products 25 86 1600-1790
Cassava and products 263 212 100-100
Egg (price per 10 eggs) 8 10 283-308
Sunflowerseed Oil 0 0 590-700
Fish products 36 21 700-1200
Beer (0.5 liter/pint) 34 16 440-500
Beans 0 0 250-300
Sweet potatoes 31 30 100-100
Soyabeans 6 23 150-180
Yams 232 233 120-160
Apples and products 0 0 600-1000
Tomatoes and products 22 5 300-400
Onions 17 5 100-200
Oranges, Mandarines 0 0 30-30
Plantains 35 32 200-400
Peas 0 0 1100-1600
Roots, Other 20 17 739-1000
Seeds and kernels 0 1 400-450
Wine (bottle) 0 0 933-1133
Pineapples and products 16 4 280-300
Cream 0 0 1000-1600
Olives (including preserved) 4 15 1900-2800
Honey 0 0 1000-1200
Coffee and products 0 0 6000-8000

 

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.

WageIndicator useful links:


Loading...