The value of 1 HBD in a country like Nigeria was worth more 1 year ago compared to today. While I say a year ago, I do not mean that previous years have been better. The truth is that in the last four years, the country's inflation rate has been increasing, and it has been hurting everyone.
Let us run a few maths, A few years ago in 2018, 1 USD was equivalent to 361.29 Naira, but a at today, the official rate of 1 USD is equivalent to 415.19 Naira, and in the black market, it is sold at 593.21 NGN. For this post, I will be referring to 1 HBD as 1 USD.
In the Past
In 2021, things were regarded as very expensive, although the rate of the Naira to the Dollar had fallen to over 400 NGN to 1 USD. A dollar at that was going to purchase a lot of things inclding:
| Product | Naira Value (NGN) | Dollar Value($) |
|---|---|---|
| 1 Egg | 30 NGN | $0.072 |
| 1 Orange | 20 NGN | $0.048 |
| 1 Pack of Seasoning Cube | 50 NGN | $0.12 |
| 1 Sachet of Tomato Paste | 50 NGN | $0.12 |
| 1 CocaCola 35cl | 50 NGN | $0.12 |
| 1 Bottle of Water 50cl | 50 NGN | $0.12 |
| 1 Family Size Loaf of Bread | 250 NGN | $0.60 |
| 1 Bag of Rice 60KG | 17,500 NGN | $42.15 |
| 1 Cooking Oil 1lt | 1200 NGN | $2.89 |
Minimum Wage and Way of Life
At this point, a lot of us were very worried, and we thought we had seen the peak of goods prices increase, but within the year 2021 and this month May 2022, the prices of goods have gone Bullish. So bullish that people can't afford to eat 2 times again. Before you start to wonder why people cannot afford to eat 2 times a day, it will be good I give a detailed analysis of salaries and wages of workers.
First, the minimum wage of the country was just increased from 18,000 NGN ($43.35) to 30,000 NGN (7$2.26), but then when we start to check the payment of workers we see that a larger percent of the population are paid below the Minimum wage monthly, some are paid just above the minimum wage while so just a few especially politicians live very high far above the minimum as high as 30,000,000 NGN ($72256.08) monthly. Let me give a quick breakdown of salaries, so you can understand.
| Profession | Salary Monthly in Naira | USD Value |
|---|---|---|
| Teachers | 15,000 NGN - 50,000 NGN | $36.13 - $120 |
| Bank Cashiers | 50,000 NGN - 100,000NGN | $120 - $240 |
| Factory Worker | 35,000 NGN - 45,000 NGN | $84.35 - $108.38 |
| Company Manager | 120,000 NGN | $289.02 |
| Receptionist | 20,000 NGN - 50,000 NGN | $48.17 - $120 |
Price of Goods as at Today
In the space of 1 year, the price of things have double or even tripled, and then you start to wonder why the inflation is very high. Egg which was sold for 30 NGN is now sold at 90 NGN, a bag of rice which was sold for 18,000 NGN is now sold for 35,000 NGN or more, depending on the state, a bottle of coke 35cl which was sold for 75 NGN is now sold for 100 NGN. A family size loaf of bread which was sold for 250 NGN is now sold for 500 NGN. A litre of fuel which was sold for 65 NGN is currently sold for 165 NGN at an average since the price isn't stable around the nation. 1 littre of cooking oil which was sold for 1200 NGN is now sold for 2700 NGN.
The State of the country and HBD
Currently, an average individual spends $20 daily, which is nothing compared to the minimum wage that many get on a mothly basis. On an average, people spend 6000 NGN (14.45 USD) on petrol which is used to fuel their ride and generator (seeing that there isn't stable electricity), an average individual spends 5,000 NGN (12.04 USD) on feeding daily.
On a weekly basis, an average individual spends 5,000 NGN (12.04USD) to get Laundry soaps, bathing soaps, body lotions, toothpaste, body spray, perfume, and so on. People spend 3000 NGN (7.23USD), and so on. On a mothly basis, people spend an average of 4,000 NGN (7.23USD).
Conclusion
The rate of inflation in my country within one year has increased over the year and price of goods have gone to around 200% to 300%. HBD a year ago was worth more in my country compared to now. An average individual requires 20 USD on food, fuel and other clothing.
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Thanks for this content. It is great to see what impact we are having on people around the world. HBD can be of extreme benefit to people in many of the lesser developed nations.
This is a very valuable lesson to carry forward.
We need to development more use cases and if people in Nigeria start accepting HBD as payment to get around the inflation of your country, then it will be a win all around.
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It is very great to see the impact of HBD in Nigeria. I have been looking into getting small business accepting HBD as a means of payment in the country
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We can set this up together. Free listing of any service in Nigeria, just post a post like @solymi did he is renting his polaroid camera to Hive tourists in Vienna.
If you can provide a service for your community and you accept HBD as means of payment than there is no middleman and you can put some of the HBD in your savings account. 20% APR is great!
This is really great and I will be putting my post up on how I intend to get it done and each progress
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Perfect! If you find any business who takes HBD as a payment post about it and we will list it in the HIVE Business Directory. There is a framework on how to do it. ON Solymis blog.
@hivebusiness
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Great post to get an insight of the value of HBD in your country @gbenga 😊
Looks a bit cheaper than where I am but still the same rising prices. Everything is getting more expensive. I posted my post about it today too. It’s nice to see more people are entering this contest so we get to know what is the value in other places of the world.
Thanks for sharing.
Have a great weekend!
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It is great to see that we are all entering this contest. It is so funny how inflation rate keeps going up in recent times.
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Yes it is great to see, every day a few pop up 😎
It does continue…
Have a great evening/night!
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HBD can offset this inflation. And if we really dream big it can do it countrywide. Look for others using hive in Nigeria and list your services in HBD so you have a stable means of exchange. Someone could just pay for repairing a generator in HBD...
@hivebusiness
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I went shopping yesterday and as usual, I kept exclaiming, "why is this so expensive?!" It's crazy how prices triple.
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