AMIDST the widespread economic challenges plaguing many African nations due to the recent global downturn, this report by The ICIR turns its attention to Ghana, where citizens are also voicing concerns over escalating living costs. This analysis compares the prices of essential goods in Ghana, a country rich in gold, with those in Nigeria, a country rich in oil.

Background

The economic hardship experienced by Ghanaians was one of the factors in the defeat of the ruling New Patriotic Party (NPP) by the National Democratic Congress (NDC) in the December 7, 2024, presidential and parliamentary elections. Simultaneously, Nigeria witnessed a series of protests against the policies of incumbent President Bola Tinubu throughout the same year.

The ICIR survey in both countries reveals that Ghanaians are paying more for food and other basic necessities compared to Nigerians. This is despite the Ghanaian cedi having a stronger value than the Nigerian naira. When the survey was conducted in December 2024, 16 Ghanaian cedis equated to one US dollar, while the Nigerian naira traded at N1,600 to the dollar, making one cedi equivalent to approximately N100.

To gather price data, The ICIR visited Nima Market, known locally as Kasoa Mamudu, in Accra and  Old Garki Model International Market in Abuja. These markets are among the largest and busiest in the capitals of both nations.

Ghana and Nigeria: Economic Indicators

As of November 2024, Ghana’s inflation rate stood at 23 per cent, while Nigeria’s was higher at 34.6 per cent. The daily minimum wage in Ghana is 18.15 cedis. This translates to roughly 490 cedis per 27 working days (per month as applicable in the country). In contrast, Nigeria operate a monthly minimum wage which is N70,000 per month.

Converting the Ghanaian minimum wage to naira gives 18.15×100 = 1,815 x 27 = N49,005. This means that the monthly minimum wage in Ghana is N49,005, while it is N70,000 in Nigeria due to a recent update, it was previously N30,000.

Ghana’s gross foreign reserve was $7.92 billion as of November 2024, while Nigeria’s exceeded $40 billion. Nigeria’s current population is approximately 236,386,904, about seven times the population of Ghana, which stands at nearly 34,914,969.

As of the end of the first half of 2024, Nigeria’s foreign debts stood at  $42.9 billion. Ghana owed 742 billion cedis, equivalent to approximately $50 million.

Ghanaians, Nigerians speak about hardship

Grace Addo said Ghanaians faced an acute economic crisis under the past administration headed by Akufo-Addo. She desired to witness better leadership under the new President John Mahama.

“Life has been hard. It hasn’t been this bad for Ghanaians. You can feel the hardship everywhere. Almost all prices have doubled in a few years. We aren’t the nation we used to be. Things are too tough for our people,” she said.

For Debra Joseph, the new government of Mahama has much to do to turn the economic tide around in the country.

He said, “We’re very surprised how the prices of goods, especially essential needs, are skyrocketing in Ghana. It was so bad that even two days before the presidential and parliamentary election, the government still increased the fuel price.”

Joseph noted that a government that wanted its party to retain power would not take such an decision. He said Ghanaians voted in anger, leading to the NPP’s overwhelming loss to the NDC in both presidential and parliamentary polls.

Another Ghanaian, Victoria Aboagye, told The ICIR that she anticipated the fall of Akufo-Addo’s party following growing hardship in the country.

“No country would endure the economic pains foisted on us by the NPP government. Instead of focusing on judicious use of our resources, the government kept taking loans and plunging our nation into further crisis. Feeding has been difficult. It’s been very hard for an average citizen to live a decent life.”

The story is not different in Nigeria. At the Garki International Market visited by the reporter, some residents of the country’s capital – Abuja – shared their views about the nation’s economy.

Auwal Ibrahim said, “Our pains worsened the day Tinubu took over power and announced subsidy removal. We didn’t expect that, and we have yet to recover from the shock. Life has been very tough for even the rich in the country.”

Bukola Abigail said seeing families who could not afford the basic needs of life, including shelter and food, was her headache.

“We thought we’d had it all under the former President Muhammadu Buhari. The emergence of Tinubu’s government has only worsened the pains we patiently endured for eight years under Buhari.

“Paying for healthcare, education, feeding, accommodation, water, electricity and other utilities has been difficult for the majority of citizens.”

Similarly, Yomi Faith said she hoped to see a change to the nation’s economic misfortunes, given some of the government policies. “I sincerely hope it won’t get to a point where Nigerians won’t be able to continue to cope with the current economic situation. The government should do all within its power to reverse the trend. I hope the government policies work.”

Table showing prices of some essential commodities in both countries – Nigeria and Ghana

Marcus FATUNMOLE

Marcus bears the light, and he beams it everywhere. He's a good governance and decent society advocate. He's The ICIR Reporter of the Year 2022 and has been the organisation's News Editor since September 2023. Contact him via email @ mfatunmole@icirnigeria.org