Veteran Nollywood actor and politician Kenneth Okonkwo has voiced strong opinions about the recent increase in Nigeria’s minimum wage, stating that the former N30,000 minimum wage held more value than the newly established N70,000.
In a discussion on the ‘Mic On’ podcast, Okonkwo analyzed the economic implications of the wage increase. He pointed out that while the nominal amount of the minimum wage has more than doubled, its real value has diminished significantly due to the sharp devaluation of the naira against the dollar.
President Bola Tinubu recently signed off on the new N70,000 minimum wage after negotiations with joint labor unions. This move was initially seen as a step towards improving the living standards of Nigerian workers. However, Okonkwo’s critique highlights the underlying economic challenges that accompany the wage hike.
He said, “The N30,000 minimum wage people were earning before this government came in was of greater value than current N70,000 minimum wage. Because you had N500 to a dollar when this government came in, but now it’s N1,500. It went to N2,000 at a point. Do the mathematics.
“So what are we talking about? When it was N500 per dollar, the minimum wage was $60. Now that the exchange rate is N1,500 it should be about $45 per month. And see that it’s of less value. So what can they say that they have achieved?”
