Is Location-Based Pay Ethical in Remote Work?

i feel like if someone is doing capitalism but they aren't fully on board with it, they are going to have a lot of questions like this

Though it goes against my nature, it seems obvious that a Nigerian company hiring someone in the California would need to offer location based pay. Part of the argument here is that country level is not specific enough, which is a problem the recruiter needs to solve (or a service someone here could develop). If pay parity is the aim, I think that has proved to be intractable.