Dr. Tope Fasua, Special Adviser to President Bola Tinubu on Economic Affairs, has offered insight into the perceived value of the naira and the complexities of poverty measurement, particularly in relation to global standards.
Speaking during an appearance on the Mic On Podcast with journalist Seun Okinbaloye, Fasua addressed widespread misconceptions about multi-dimensional poverty, a key metric often used by international organisations to rank nations on 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.”
Fasua pointed out that many Nigerians wrongly interpret multi-dimensional poverty as an absolute measure of economic hardship, noting that it also accounts for lack of access to social amenities and infrastructure, not just income or food.
Turning to the current economic reality and currency valuation, Fasua acknowledged the high exchange rate between the naira and the dollar but stressed that local purchasing power remains relevant and functional for many Nigerians.
“$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.
He used familiar examples to illustrate how a modest sum can still secure a decent meal within Nigeria, especially when spent wisely.
“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.
Fasua’s comments come amid ongoing debates over the economic situation in Nigeria, with critics highlighting the high inflation rate, naira depreciation, and rising cost of living. However, Fasua’s position aims to contextualise the challenges, especially when comparing Nigeria’s domestic market with international standards.
