Recently I've seen a lot of so called "enlightened" people throw this false narrative that increase in minimum wage will drive up inflation and this has been fed to them by greedy politicians and I've never seen people say something so wrong so confidently.

While it is true that an increase in money supply will lead to inflation with all things being equal in a perfect economy, this can only be true if the other economic factors are balanced.

The Nigerian economy is far from a perfect economy and we already have several factors driving inflation so let us discuss.

Firstly, politicians and top appointees are already paid heavy salaries, these salaries are put into circulation. Apart from these salaries there is the looting and padding going on making them so much money which they plough back into circulation. The Nigerian real estate market is an example of a bubble that has been fed by corrupt politicians with their stolen money in circulation. You see houses with no parking space for N1billion with no extra amenities in a country where less than 5% of the population have more than 500k in their account. Property prices are compared with what you can get in the US, UAE, Turkey with better amenities. Our property prices are equivalent to places where there is security, constant power, parking space, where the rental income can even pay the mortgage and you don't think it is overpriced. Who do you think buys these houses and drive up the property prices in Nigeria?

Their children go to overpriced schools that tuition fees match the best boarding schools in Europe but cannot boast of the same amenities other than the fact that your child mingles with children of the same socio-economic status. Recall the case of Yahaya Bello and the alleged advanced school fees payment he made to a school in Abuja. They pay these fees and don't care because it's proceeds of corruption. Their actions drive up school fees, every corner there is now an international school that the average citizen cannot afford. Schools for the 1% of the 1% and there is a ripple effect on other schools which leads to higher school fees throughout. That is also a factor driving up inflation.

They carry call girls and pay them hefty sums for just a night out. Those girls in turn take that money to rent houses and buy things in the market. This is extra money in circulation for adding almost nothing to the GDP of Nigeria. Someone who hasn't produced anything or added any value to the economy gets $1,000 for a night with a politician. They rent expenses houses in choice areas and lead to rent inflation. Somehow most of you do not see that as a factor driving up inflation. It's the Nigerian worker that works for his wages you think will drive up inflation.

The government spent about N1trillion for transfers to poor households, injecting more money into the economy and you see nothing wrong with that but people that have earned their daily pay is where you draw the line. You must be joking.

The prices of goods are skyrocketing everyday, workers cannot even afford to transport themselves to work or feed their families.

If the politicians care about inflation so much let them stop stealing and reduce their salaries when they increase the minimum wage, that way the money in circulation will balance, don't you think so?

Looting of our common wealth by political leaders is the only thing increasing inflation in Nigeria.

Increase in their welfare package never lead to inflation na minimum wage go lead to inflation.


Truly, I've never seen clowns like Nigeria government and all those their supporters.