After 7 years, the Nigerian labour force is poised to benefit from the tentative 67% review in the minimum wage to N30,000 per month. However, the downside risks are a higher government wage bill, pressure on the fiscal deficit and inflation.
Oil prices crashed by 12%, enduring a 7-day losing streak in fear of the gloomy global demand forecast. OPEC has already alluded to the fact that demand for oil might be falling faster than anticipated. This development has far reaching implications for Nigeria’s fiscal consolidation efforts and external reserves accretion, especially at a time of increasing pressure on the naira.
In this edition of the FDC Monthly publication, the FDC Think-Tank analyzes these issues and their implications on businesses and investment decisions.
Enjoy your read.