Dr. Tope Fasua, Special Adviser to President Bola Tinubu on Economic Affairs, defended the value of the naira in local terms, comparing the cost of living in Nigeria with that of the United States.
Fasua argued on the MicOnPodcast with Seun Okinbaloye that many Nigerians misunderstand the concept of multi-dimensional poverty, which is often used in global poverty indices.
“Some people don’t understand the meaning of multi-dimensional poverty,” he said. “They think multi-dimensional poverty is worse than food poverty. What multi-dimensional means is that maybe the school your children attend is too far from you, or the hospital, and they categorise you as multi-dimensional.”
He went on to explain that despite the high exchange rate of the naira to the dollar, the purchasing power of local currency in Nigeria remains significant compared to the cost of living abroad.
“$1 is N1,500 – it’s a lot of money for many people in Nigeria. $10 won’t buy you lunch anywhere in the
U.S., sometimes you need at least $20, that is N30,000 in Nigeria,” Fasua explained.
Using relatable examples, Fasua described how ordinary Nigerians can still enjoy decent meals without spending much.
“I will tell you what you can do with $5 – that is N7,500 – if you are not going to eat in some eyebrow places. In Gwarinpa, there are some people that sell Boli and fish and you will eat for N1,500. If you know where you are coming from,” he added.
