Dr. Tope Fasua, Special Adviser on Economic Affairs to President Bola Ahmed Tinubu, has shed light on the intricacies involved in measuring poverty, particularly in the Nigerian context. While speaking on the Mic On Podcast hosted by Seun Okinbaloye, Dr. Fasua addressed public misconceptions about poverty statistics and offered a perspective that defends the strength of the naira within the local economy, despite its weakened performance against the U.S. dollar.
According to him, many Nigerians misunderstand what is meant by multi-dimensional poverty—a concept often used in global poverty assessments. He clarified that this form of poverty does not necessarily mean a lack of food or extreme financial destitution. Instead, it could relate to challenges in accessing basic services such as education and healthcare.
“Some people don’t understand the meaning of multi-dimensional poverty,” Fasua 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 also addressed concerns about the high exchange rate of the naira to the U.S. dollar, emphasizing that the local purchasing power of the naira still holds value for ordinary Nigerians. He pointed out that while one U.S. dollar may be equivalent to N1,500, the cost of basic living expenses in Nigeria remains much lower than in countries like the United States.
“For example,” he said, “$10 can barely get you lunch in the U.S. In some places, you might even need $20 or more just to have a decent meal—that’s about N30,000 in Nigerian currency. However, in Nigeria, people can still eat well without spending nearly as much.”
He gave practical examples to support his argument, referencing everyday food options available in places like Gwarinpa, Abuja. “Take $5, which is about N7,500,” Fasua noted. “You can get a decent meal—if you’re not eating in upscale restaurants. In some areas, you can enjoy a plate of boli (roasted plantain) and fish for as low as N1,500. It all depends on your perspective and lifestyle.”
Overall, Dr. Fasua aimed to draw attention to the nuanced reality of living standards in Nigeria, urging citizens and analysts to consider local context and cost structures when discussing economic hardship and currency valuation.
