How much should graduates earn in Nigeria?
Ajanlekoko, an electrical engineer, is a Senior Manager in one of the telecommunication companies operating in Nigeria. He earlier made same post on Nairaland.com
What would you say should be the fair value of what graduates should earn in Nigeria?
Entry graduates, I mean fresh bachelor degree or HND graduates in Nigeria. What should they be paid ideally?
I have a little data that might help our evaluations, from four countries that I think I can compare safely with Nigeria. Two leading emerging economies, and two leading developed nations. I got this from a variety of sites, it would be too much posting them on here, but you’ll get the general idea.
United States:
Entry Level Income Average = US$49,000 est. Note, this one was a rough estimate, it varies a lot in the USA, depending on location.
GDP per capita = US$47,100
Graduate % of workforce = 30%
Rate of graduate unemployment = 5.1% (2010 est)
United Kingdom:
Entry Level Income Average =GBP29,000 (approx US$47,000)
GDP per capita = US$36,200
Graduate % of workforce = 20%
Rate of graduate unemployment = 20% (2010 est)
China:
Entry Level Income Average = US$4,977.00
GDP per capita = US$4,100
Graduate % of workforce = 10%
Rate of graduate unemployment = 32%% (2009 est), though China’s official stats say it is at around 10%.
India:
Entry Level Income Average = US$3,500 (very rough estimates, difficult to find salary estimates for India due to the focus on IT jobs.)
GDP per capita = US$1,200
Graduate % of workforce = 14.5%. No real reliable data could be found here.
Rate of graduate unemployment = 12.5% (?). No reliable data could be found, most sites say it is 2 percent above the official 10.5%.
Note: A study I ran into here says something like 85% of Indian graduates are not employable. Close to home, huh?
And now Nigeria:
Entry Level Income Average = ?
GDP per capita = US$1,400
Graduate percentage of workforce = unknown, I couldn’t find any data. Maybe someone can help.
Rate of graduate unemployment = unknown, but 50% of 15-25 year olds in urban areas are unemployed.
So, how much do you think fresh graduates in Nigeria should be paid?
I think maybe between N80,000 and N100,000 should be a minimum starting graduate salary in Nigeria. That’s something like US$6,000 a year. But when you look at the data of other countries apart from India, you see the close correlation between GDP per capita and annual graduate pay. So ideally graduates should not be paid more than N20,000 a month?
Your thoughts please.
Ajanlekoko and your controversial views.
I think pay should be determined by the following;
1. Sector of the economy
2. Profession
3. Demand and supply for labour and skills.
4. Real or perceived value created by an employee.
Sir if a graduate in nigeria should not be paid more than 20,000 in a month as you rightly says,it Will be difficult to cope in this country. for instance la gos transportstion,house rent and other bills bearing in mind that two of those countries you mention somehow provide financial support for their citizens unlike nigetia.correct me if am wrong.
I think wealth is determined by the value you create, AJ suggested that based on the value created in our economy. It is controversial, but I think he is right,
I think Nigerians should focus on value creation, productivity, innovation, entrepreneurship and creativity.