Living Wage Series - Nigeria - September 2019 - 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 70 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 NGN)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 75800-102300 39900-53800 9980-13500
Housing expenses 12000-20000 12000-20000 4760-7940
Transport expenses 8000-10000 8000-10000 4000-5000
Healthcare expenses 5000-8000 5000-8000 1250-2000
Education expenses 2000-4000 2000-4000 0
Other expenses 5140-7220 3350-4790 1000-1420
Total Expenditure 107940-151520 70250-100590 20990-29860
Net Living Wage 67463-94700 39028-55883 20990-29860
Gross Living Wage 74200-104200 42900-61500 23100-32900

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

  from-to
Typical family (two parents + 5.6 children, 1.6 working) 74200-104200
Standard family (two parents + 2 children, 1.8 working) 42900-61500
Two parents and two children, 2 working 38600-55300
Two parents and two children, 1.5 working 51500-73800
Two parents and two children, 1 working 77300-110700
Two parents and three children, 1.6 working 55500-78900
Two parents and four children, 1.6 working 62700-88600
Single-adult without children, 1 working 23100-32900

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in NGN)

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.

  2016 2017 2018 2019
Minimum wage 18000 18000 18000 18000
Living Wage - Single Adult - - 23600-31000 23100-32900
Living Wage - Typical Family - - 77500-102700 74200-104200
Real wage of low-skilled worker - - - -
Real wage of medium-skilled worker - - - -
Real wage of high-skilled worker - - - -

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.

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Food basket 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 item Grams per day Energy (kcal) Price per kilo
Wheat, barley and cereals products 169 487 340-440
Rice 63 233 300-350
Meat (beef, pork, poultry) 23 37 500-850
Oils (soyabean, olive, palm) 25 223 350-380
Sugar (Raw Equivalent) 23 82 250-270
Maize and products 73 233 90-110
Milk - Excluding Butter 18 10 600-950
Vegetables, Other 103 27 100-200
Potatoes and products 10 7 200-200
Butter, Ghee 1 7 1120-1280
Groundnuts (Shelled Eq) 17 56 200-200
Pulses, Other and products 26 87 -
Cassava and products 266 214 40-100
Egg (price per 10 eggs) 8 10 250-250
Sunflowerseed Oil 0 0 600-700
Fish products 36 21 500-800
Beer (0.5 liter/pint) 34 16 340-360
Beans 0 0 320-320
Sweet potatoes 31 30 40-90
Soyabeans 6 24 100-120
Yams 232 233 100-140
Tomatoes and products 22 5 300-400
Onions 17 5 100-200
Plantains 35 32 200-400
Peas 0 0 1200-1600
Roots, Other 20 17 739-1000
Seeds and kernels 0 1 350-450
Wine (bottle) 0 0 1330-1330
Pineapples and products 16 4 280-300
Cream 0 0 1200-1600
Olives (including preserved) 4 15 1900-2770
Honey 0 0 1000-1200
Coffee and products 0 0 7800-8250

 

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:

Publication Guzi, M., & Kahanec, M. (2019). Estimating Living Wage Globally. Amsterdam, WageIndicator Foundation
WageIndicator Wages in Context Map with the latest updates
All You Always wanted to Know about Living Wages
Donations

 


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