Four analyses show N200,000 in 2014 more than N2 million in 2024

Nigeria is facing an unprecedented economic crisis, with inflation at its highest in decades, the naira down to its lowest ever.

The removal of fuel and electricity subsidies by the Tinubu administration has created a severe financial strain that has left millions unable to feed adequately.

What used to be a liveable income in the past is now barely enough to cover basic necessities.

The government has approved a new minimum wage of N70,000, twice the previous rate but still unable to cover the difference in costs. Worse, the new wage has still not been implemented yet for many workers.

To demonstrate how things have changed and become worse, we compare the value of N200,000 a decade ago with N2 million today. New graduates with little or no experience could earn N200,000 in 2014. On the contrary, N2 million is still way out of reach as income for many in the class today, even as costs have exploded.

So, what’s the difference in their worth?

Here are five comparisons that show the shocking scale of Nigeria’s economic hardship, indicated by how the naira has significantly lost value.

N200,000 more than N2 million

On November 25, 2014, N200,000 was equivalent to about USD 1,235 at an average exchange rate of N162 to a dollar. A decade later, N2 million is worth approximately USD 1,210, based on an exchange rate of N1,652 to $1, the official closing rate on Friday.

This means that the value of N200,000 in 2014 was worth more in dollars than N2 million today.

Bags of Rice

In 2014, a 50 kg bag of rice cost around N10,000. In 2024, the price of the same bag has surged to at least N106,000. In some stores, it sells for over N133,000.

That means in 2014, N200,000 could buy approximately 20 bags of rice.

Today, N2 million can now only buy about 18 bags of rice or less. The sharp decline in how much rice can be purchased speaks to the soaring food prices, making it difficult for many Nigerians to afford staple foods.

Bags of Beans

Beans, another staple food, has also seen a dramatic price increase. In 2014, a 100 kg bag of beans cost about N26,000, while the price has skyrocketed to N300,000 in 2024.

That means in 2014, N200,000 could buy about 7.7 bags of beans.

In 2024, N2 million can now purchase only six and a half bags.

Petrol

The price of petrol in Nigeria has risen drastically, from N87 per litre in 2014 to N1,060 per litre in 2024.

In 2014, N200,000 could buy approximately 2,298 litres of petrol.

Now, N2 million now buys only about 1,886 litres of petrol.

…Now, almost the same

Lagos-Abuja Flights

The cost of domestic flights within Nigeria has also skyrocketed. A flight from Lagos to Abuja in 2014 cost around N15,000, but the same flight now costs about N133,000.

In 2014 therefore, N200,000 could cover the cost of about 13 Lagos-Abuja flights.

In 2024, N2 million can only afford about 15 flights.

Only this puts N200,000 a decade ago at just about the same value with N2 million today. Other comparisons show N2 million in 2024 is worth less than N200,000 some 10 years ago.

They point to the excruciating economic hardship Nigerians face today.