APC Says Nigerians Have More Money—So Why Can’t ₦70,000 Buy What ₦30,000 Used To?

₦1 Billion Is Still ₦1 Billion—So Why Can’t It Buy What It Used To?

Nigeria's biggest economic illusion is making people believe that having more naira automatically means having more wealth.

Let me give you a simple example.

In 2022, I had ₦50 million. At the time, that was roughly what I needed to build a house I wanted.

Instead of building, I decided to buy land.

Four years later, the land is worth approximately ₦100 million.

Wonderful.

I doubled my money.

Profit, right?

Not so fast.

The same house I could have built for about ₦50 million in 2022 could now require roughly ₦150 million or more, depending on location, specifications, labour and the cost of building materials.

So what exactly have I gained?

My land has appreciated in naira value, but my purchasing power has deteriorated.

I have more money on paper.

But I cannot buy what that money could buy four years ago.

That is the part of Nigeria's economic conversation many people deliberately—or conveniently—ignore.

MORE NAIRA DOES NOT NECESSARILY MEAN MORE WEALTH

Nigeria's national minimum wage increased from ₦30,000 to ₦70,000 in 2024.

Politically, that sounds impressive: ₦30,000 became ₦70,000.

But take that same worker to the market.

Ask him how much food costs.

Ask about rent.

Ask about transportation.

Ask about electricity.

Ask about school fees.

Ask about medicine.

Ask about a crate of eggs.

Ask about building materials.

The answer will tell you more about the Nigerian economy than any speech from a government podium.

Because salaries are not spent in press conferences.

They are spent in markets.

And the market does not care how impressive ₦70,000 sounds on paper.

“BUT DO YOU SPEND DOLLARS IN NIGERIA?”

Yes, Nigerians spend naira.

But that does not mean the dollar is irrelevant.

Nigeria imports a significant amount of goods, machinery, raw materials and production inputs. Changes in the foreign-exchange market therefore have consequences throughout the economy.

So when the naira loses value against the dollar, the effects eventually find their way into the prices Nigerians pay.

That is why an international event thousands of kilometres away can contribute to changes in the price of petrol in Nigeria.

That is why Nigerians can wake up to higher prices for imported goods.

That is why building materials can become dramatically more expensive.

And that is why the argument that “we don't spend dollars here” completely misses the point.

The dollar does not have to be the currency in your wallet to influence the price of what you buy.

THE ₦1 BILLION QUESTION

Here is another uncomfortable comparison.

Suppose ₦1 billion was worth about US$2.2 million when the exchange rate was around ₦450 to the dollar.

At an exchange rate around ₦1,330 to the dollar, that same ₦1 billion is worth roughly US$752,000.

The naira amount remains:

₦1,000,000,000.

But its international purchasing power has changed dramatically.

That is currency depreciation in its simplest form.

And the same principle applies domestically.

If a road that cost ₦50 million to construct several years ago now costs ₦150 million, telling Nigerians that government has “more money” because the budget has increased misses the fundamental issue.

What matters is what the money can actually buy.

THE GOVERNMENT'S ARITHMETIC IS NOT THE PEOPLE'S ARITHMETIC

This is why Nigerians should look beyond nominal figures.

If a state receives more naira but the cost of executing projects rises even faster, the state may not actually be richer.

If a worker receives a higher salary but food, rent and transportation rise faster than his income, his standard of living may still decline.

If a businessman sells an asset for twice what he paid for it but cannot replace the asset or achieve the same objective with the proceeds, calling it a genuine gain can be misleading.

That is the difference between having more money and having more value.

And Nigerians understand this reality every time they enter a market.

The ₦100 meat pie of yesterday did not become ₦500 because Nigerians suddenly became five times richer.

The price increased because the economics surrounding production, transportation, ingredients, energy and purchasing power changed.

So when politicians announce bigger figures, Nigerians should ask a very simple question:

“What can this money buy today compared with what it could buy before?”

That is the real arithmetic.

Not the arithmetic of press releases.

Not the arithmetic of political speeches.

The arithmetic of the market.

The APC government should understand that Nigerians are capable of doing that mathematics themselves.

You can increase the numbers.

You can increase the allocations.

You can increase the salaries.

But if purchasing power continues to collapse, Nigerians will eventually ask the question that matters most:

“Are we actually richer—or are we simply carrying more naira that buys less?”

And that is a question no political slogan can answer.

Not all Nigerians are stupid. Nigerians can see the difference between more money and more value.