A Nigerian political analyst, Goerge Udom, on Saturday, 19 March, 2022, posted on his Facebook page three claims regarding minimum wage, fuel price, and house rent in Ghana and Nigeria.

Mr Udom made these claims while comparing the living situations between these two West-African countries.  

He said, “Comparing Apples to Apples:

Minimum wage:

Ghana N25,300

Nigeria – N30,000

Fuel Price/ltr

Ghana – N350

Nigeria – N165 (officially)

House Rent:

Ghana + 8% Tax Nigeria + 0% Tax

There is no free lunch anywhere in the world! If Nigerians want a developed economy we simply have to PAY for itit!” 

A screenshot of Mr Udom’s post

This post has generated a total of 330 likes, 226 comments, and 58 shares at the time of fact-checking.

When contacted for the source of his claims, Mr Udom left the inquiry message unanswered in his Facebook chat-box. 

Inquiry message sent to Mr Udom

How accurate were Udom’s claims? We checked. 

Findings

From the post, the following claims were established:

Claim 1: 

That minimum wage in Ghana is N25,300, while N30,000 in Nigeria. 

Findings by this reporter show that the claim that N30,000 is the monthly minimum wage in Nigeria is accurate, but that N25,300 is the monthly minimum wage in Ghana is false.

According to the International Labour Organisation(ILO), Minimum wages are defined as “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract.

This definition refers to the binding nature of minimum wages, regardless of the method of fixing them. Minimum wages can be set by statute, the decision of a competent authority, a wage board, a wage council, or by industrial or labour courts or tribunals. Minimum wages can also be set by giving the force of law to provisions of collective agreements. 

According to information available, as of March, 2022, on Wageindicator, a non-profit organisation that shares and compares information about wages, labour law and career in 196 countries globally, the minimum wage in Ghana is GHS13.53 daily, which is equal to 776.19 in Nigerian currency, according to Currency Matrix’s convert. 

In Ghana, monthly minimum wage figures are calculated as daily minimum wage × 27 days, according to Wageindicatior. So going by mathematical calculation, GHS 13.53 in 27 days is equal to GHS 365.31 —equivalent to 20,820.64 in Nigerian currency. 

Meanwhile, in Nigeria, the monthly minimum wage is N30,000 (522.94 in Ghanian cedis). According to Wageindicator, The minimum wage in Nigeria is based on monthly income with an average working period of 8 hours daily and 5 days weekly.

Verdict: The claim is PARTIALLY TRUE. While N30,000 as the monthly minimum wage in Nigeria as claimed by Udom is TRUE, the minimum wage in Ghana is GHS13.53 (N776.19) daily, GHS365.31 (N20,820.64) monthly, not N25,300 as claimed by Udom.

Claim 2: 

That 1 litre of fuel costs N350 in Ghana, while the official price is N165 in Nigeria. 

According to a record found at GlobalPetrolPrices.com, petrol price in Ghana, according to data updated as of 14, March, 2022, is GHS 8.618 per litre, equivalent to 491.18 in Nigerian currency. 

The above price was also confirmed by Statista. According to them, as of March 14, 2022, the price of gasoline in Ghana stood at 8.62 Ghanaian cedis (GHS) per litre, corresponding to roughly 1.21 U.S. dollars.

Further findings reveal that the above update is the most recent, as at the time of writing this report, on petrol price in Ghana. 

Meanwhile, in Nigeria, presently,  the official pump price of petrol (PMS) is N165 (2.87 in Ghanian cedis, equivalent to 0.39 US Dollar), NigerianPrice.com — an online resource designed to help Nigerians (and others) to keep abreast of current prices of products and services available in the country, revealed.

The Verdict: The claim is PARTIALLY TRUE. The official petrol price in Nigeria is N165 as claimed, hence TRUE. But findings by this reporter revealed that the fuel price in Ghana is N491.18, not N350 as claimed, hence FALSE

Claim 3: 

That house rent tax in Ghana is 8%, while it is 0% in Nigeria. 

According to Ghana Revenue Authority, There are two rates for rent tax; 8% for residential premises and 15% for non-residential premises.

Meanwhile, in Nigeria, despite several controversies that trail the issue of house rent tax, finding shows that rent derived from the lease of real properties, whether for residential or commercial purposes, is not a supply of goods or services and is therefore not liable to Value Added Tax(VAT). What this means is that house rent tax in Nigeria is not recognised by the law. 

The Verdict: The claim is TRUE.