Wednesday, May 04, 2016 3:33 PM / FDC
Nigerian workers are demanding the dollar equivalent of their salaries, after a five year minimum wage freeze of
N18,000 per month ($120). They are now demanding N56,000 at a time when labour productivity growth has shrunk to (-0.4%).
In terms of competitiveness, Nigeria ranks below Angola and Kenya. All of this is happening when the government is obsessed with a rigid position on the exchange rate. Nigeria remains one of the few countries amongst 188 nations, who still intend to practice a fixed rate.
According to Reuters, “tumbling commodity prices, slowing growth and gaping fiscal holes have forced many countries to loosen or scrap their currency pegs, and pressure is mounting on those that remain, such as Saudi Arabia.”
The jury is still out as to what direction the MPC will swing on May 24th.
This edition evaluates the probability, possibility & consequences of a change in monetary policy this month.
3. 2016 - A Year of Growth and Commodity Turmoil – Dec 2015