Joy Nwankwo
Tougher times await Nigerians as manufacturers brace for fresh hikes in the prices of commodities in the market in response to the continued depreciation of the naira against the United States dollar and other foreign currencies, even as The Federal Government plans to inaugurate a 37-man Tripartite Committee on National Minimum Wage on Tuesday, with a mandate to recommend a new National Minimum Wage for the Country.
The naira has consistently faced a steady downward slide in value in the past few months as it reportedly fell , Friday, to N1,420/$ at the parallel window of the foreign exchange market with dire consequences on the general prices of commodities in the market.
Reports in the Punch disclosed that the President of the Manufacturers Association of Nigeria, Francis Meshioye, said that the naira, which has now remained at over N1,400 in the parallel market for two days, would lead to price hikes in the economy.
He said, “It is not possible to remain profitable with this exchange rate. The first challenge is breaking even. It means the prices of things will be higher, and the income is not there for people to buy things as they should buy as things become more expensive.
“So, the demand will become low, and this will affect our bottom-line. The break-even point will become critical. So, what businesses should do is to ensure that they break even at this time. It is a critical and very challenging time for us.”
Already, Nigerians have started feeling the pinch, as most households can barely afford three square meals a day for their families and other basic essentials.
Mrs Stephanie Okereke, a housewife in Lagos told FiscaPosts that cost of living has become astronomical and has forced a drastic fall in the standard of living of most people.
“With unemployment rate so high and those who are in employment suffering from wage stagnation, I don’t see how one can make ends meet”, she lamented.
“It is probably in the light of this that the planned inauguration of the Committee on National Minimum Wage billed to take place on Tuesday is seen as a welcome development”, Okereke said.
In a statement on Sunday by Segun Imohiosen for the Secretary to the Government of the Federation.
The inauguration will hold on Tuesday, January 30, 2024 by 12 noon at the Council Chamber, Presidential Villa, State House, Abuja.
The Committee under the Chairmanship of former Head of the Civil Service of the Federation, Bukar Aji, cut across Federal Government, State Government, Private Sector and the Organised Labour.
But, Mr. Festus Kujo, a self-employed business entrepreneur, is not so optimistic about what positive effect the planned national minimum wage would have on the masses majority, of whom are unemployed.
According to Kujo, “How many Nigerians are employed or have regular jobs to benefit from this planned national wage?” He advised the federal government to focus on providing the enabling environment for businesses to thrive and for meaningful production to take place in Nigeria.
The fall of the national currency has been partially responsible for high inflation rates in the country. As of December 2023, inflation rose to 28.92 percent according to the National Bureau of Statistics.
With reports from Punch