The National Bureau of Statistics (NBS) says the endless depreciation of the naira and the rising inflation have eroded workers’ N24.88tn salary received in the first six months of 2022.
According to data on employees’ compensation by the Bureau the salaries of workers in the Nigerian formal sector increased from N21.80tn in the first six months of 2021 to N24.88tn in the corresponding period of 2022.
This represents an N3.08tn increase within the period. But when adjusted for inflation, the NBS said the data revealed that there was only an N550.97bn increase.
According to the Punch, the data means that not only was the N3.08tn increase in salary eroded, but the total salary of nearly N25tn also depreciated.
The data revealed that the compensation of employees at 2010 purchaser’s value was N10.71tn in the first six months of 2021, which marginally increased to N11.26tn in the corresponding period of 2022.
Analyzing the data, the NBS said, “This consists of the total remuneration of employees in the formal sector, including both wages and salaries, and benefits in kind (such as pensions).
“In Q1 and Q2 2022, compensation of employees grew by 6.48 percent and 3.93 percent respectively in real terms year on year.
“These growth rates were lower than Q1 2021 and Q2 2021 rates recorded at 9.26 percent and 19.44 percent respectively. On a quarter-on-quarter basis, the compensation of employees in real terms fell by 13.25 percent in Q1 and grew by 7.22 percent in Q2 2022.
“In nominal terms, compensation of employees grew by 14.30 percent and 13.95 percent in Q1 and Q2 2022 respectively. The nominal quarter-on-quarter growth rates of -6.86 percent in Q1 2022 and 8.09 percent in Q2 2022 were recorded, higher than -8.33 percent in Q1 2021 and lower than 8.42 percent in Q2 2021.”
