By
Author Unknown
The Danger of Economic Illiteracy in High Places: A Rebuttal to Tope Fasua’s Misleading Lunch Cost Comparison
In a recent statement, Tope Fasua, Senior Special Assistant to President Tinubu of Nigeria, asserted that $10 cannot buy lunch in the United States, while $1 is sufficient to buy a meal in Nigeria. At face value, this may seem like a benign comment. But under scrutiny, it reflects a dangerous misunderstanding—or misrepresentation—of fundamental economic principles. When such assertions come from a high-ranking economic advisor, they must be met with rigorous criticism.
1. Purchasing Power Parity (PPP): A Fundamental Misunderstanding
Purchasing Power Parity (PPP) is a bedrock economic concept that allows for comparisons between countries’ currencies in terms of their real purchasing power. According to the World Bank’s 2023 data, Nigeria’s PPP conversion rate is roughly 200 naira to one US dollar, not the prevailing market exchange rate of ₦1500.
To claim that $1 (i.e., ₦1500) can buy more in Nigeria than $10 can in the U.S. entirely ignores PPP adjustments. Nominal exchange rates are not reflective of real living costs, and conflating the two is a fundamental error. If a senior economic advisor cannot distinguish between nominal and real values, then their advice is, at best, economically uninformed and, at worst, intellectually dishonest.
2. Consumer Price Index (CPI) and Inflation: Reality Check
Nigeria is battling inflation rates exceeding 30%, driven by food insecurity, currency devaluation, and supply chain inefficiencies. In contrast, the U.S., even during inflationary spikes, has rarely surpassed a 5% inflation rate in recent years.
A basic food basket in Nigeria has more than doubled in price year-on-year. In many urban areas, ₦1500 ($1) cannot buy more than a small sachet of milk or a meager plate of rice. Meanwhile, in many parts of the U.S., $10 can still secure a full meal from fast food outlets or food trucks.
Fasua’s comparison is not only flawed—it’s detached from the lived experiences of the people he claims to speak for.
3. GDP Per Capita and Real Incomes: Context Matters
Understanding affordability requires consideration of income levels. Nigeria’s GDP per capita (PPP-adjusted) hovers around $5,000, compared to over $75,000 in the U.S. More importantly, food expenses account for up to 60% of a Nigerian household’s income, compared to about 10% in the U.S.
It is not that things are cheaper in Nigeria; rather, people earn less and spend a higher proportion of their income on basic needs. Fasua’s statement overlooks this essential context, reducing complex macroeconomic realities to an absurd soundbite.
4. Theoretical Ignorance or Intellectual Dishonesty?
Any credible economic advisor should apply tools such as the Big Mac Index, CPI data, and global poverty lines when making international cost comparisons. Tope Fasua’s failure to reference any of these benchmarks suggests either a shocking lack of economic literacy or an intent to mislead the public.
Such a claim brings into question the legitimacy of his academic qualifications. Has he misinterpreted his education, or is he intentionally misusing economic theory for political gain? Either way, this kind of economic rhetoric undermines public trust and damages Nigeria’s international credibility.
5. Policy Implications: Misinformation with Consequences
Statements like Fasua’s are not just economically inaccurate; they are politically dangerous. They mislead citizens, distort policy discussions, and mask government failures in tackling inflation, food insecurity, and currency instability. Worse still, they deter foreign investment by presenting a misleading picture of economic conditions.
If these are the kinds of narratives guiding fiscal strategy, then Nigeria’s economic governance needs urgent reform and accountability.
Conclusion: Facts Over Fallacies
Tope Fasua’s remark is not merely an economic error; it is a profound failure of intellectual and professional responsibility. When economic advisors propagate such distortions, they do a disservice not only to the government they serve but also to the millions of Nigerians struggling with the very realities they choose to ignore.
If Mr. Fasua holds academic qualifications in economics, then his institutions should re-examine the efficacy of their instruction. Nigeria deserves better—more competence, more honesty, and more data-driven discourse.
The Nigerian people are owed more than political platitudes; they are owed the truth.
COPIED
