Anti-corruption group sets Dollar to Naira minimum wage at N2,300. Learn about the implications and impact of this new wage standard in Nigeria.
According to IPC Justice, a notable organization focused on combating corruption, the Naira-USD exchange rate may surge up to N2,300 due to President Bola Tinubu’s recent ratification of a higher minimum wage of N70,000 for Nigerian laborers.
IPC Justice, which is renowned for its attentiveness towards economic affairs, expressed apprehensions regarding the probable influence of the salary hike on inflationary patterns.
On Thursday, the group stated on its verified X handle that there is a high chance of downward pressure on the Nigerian currency because of rising demand for foreign exchange. The statement was brief and to-the-point.
“Exchange Rate Implications of Recent Salary Hikes”
Read Also: Naira Strengthens Against Dollar in Parallel Market
The recent approval of a minimum wage amounting to N70,000 calls for a review of our exchange rate estimates. Though advantageous in terms of improving workers’ well-being, this wage hike is expected to amplify inflationary forces and increase the need for foreign currency.
As informal market activities have a considerable impact on exchange rate volatility, leading to exacerbation, we are modifying our Naira target.
The newly set goal for the exchange rate is $1 to N2,300.
“We expect economic pressures and the influence of informal markets, hence the necessary adjustment. Nevertheless, we remain firmly dedicated to monitoring developments carefully and taking action to stabilize our economy through increased regulatory oversight and promoting financial inclusivity.”
“Our goal remains to achieve long-term economic growth and stability, while also addressing the welfare needs of all members of society.”
According to Obasanjonews.com, the Nigerian Naira is trading just above N1,500 in both official and parallel markets.
