In a February 2024 interview, the Finance Minister and Coordinating Minister of the Economy, Wale Edun stated that about 5% of Nigerians have more than ₦500k in their bank accounts. It’s also been widely reported that only about 3.6 million Nigerians can afford to spend more than $10/day, suggesting that most of the population are low-income earners.
So, what’s the starting point of being a middle-income earner in the country? The answer depends on whom you ask. But we asked five people, each earning north of ₦700k/month, to talk about what they can do with their income.
Jasmine, 26
Income: ₦850k/month
Occupation: Data Analyst
What can you afford on your salary? My salary accommodates the cost of most of my essentials: fuelling and maintaining my car, spoiling my boyfriend with about ₦100k every month, giving in to food cravings, and paying my bills and subscriptions. That’s it. I don’t splurge on anything else— I haven’t bought a new device in years, and I don’t pay black tax.
I try to save ₦500k/month, but that’s where the trouble starts. When the ₦350k I budget around finishes, I dip into my savings. So before the end of the month, I’m struggling a little and borrowing money from my boyfriend. That’s my life right now.
Paint a picture of the quality of life you thought your salary would give you before you started earning it? Now that you are there, what does it look like? Let me start with this: at the beginning of last year, I was earning ₦360k, and I had dollar and naira savings worth ₦1.5m. I also went on a ₦1.5m vacation with my boyfriend, which I paid for.
The thing is, I thought I’d be able to do more if I earned more, but that hasn’t been the case. I started earning ₦850k in February 2023, and was on top of the world. I had a very clear plan — keep lifestyle creep at bay, save ₦2m in the first few months and start a business. None of these have happened. What’s more? I can’t do any of the things I did then. I’m a bit responsible for this. Though I’m not a big spender, I also am not very intentional about tracking my spending. ₦2k here and there; dash another person ₦10k here, and the salary has finished.
Do you feel like you belong to the Nigerian middle class? I should be, but I don’t think I am. And I feel bad saying this — I’m a top earner in the country and know most people aren’t earning as much as I do. But I can’t afford anything else that isn’t tied to surviving the month. My most significant expense in years is my apartment — I lived with family until a few months ago when I moved into a ₦2.5m two-bedroom apartment.
Two years ago, I had a better quality of life. Now, not so much. It’s okay to argue that inflation has ruined many things; I’ve been very concerned about the increasing costs of things. That said, I also acknowledge my fault here. Not tracking my spending enough did a lot to bring me here.
What safety nets have you built? Do they feel commensurate with your income? I currently have ₦400k in savings and no investment. That’s all my safety net at the moment. Someone owes me ₦1.2m, but I owe another person the same amount. So yeah, I have a decent quality of life, but I’ve never been more unsatisfied with my finances than I am right now.
What should you be able to afford but can’t? A trip to an African country at least once every year. Devices, too. I haven’t changed my phone in more than two years and I’m using a work computer — if they collect it from me, I don’t know when I’ll be able to get another one.
Would you say you’re living below, within or above your means relative to your income? Above my means, for sure. I don’t know how or why, but it is what it is.
Nnamdi, 25
Income: Between $1200 and $2000 — a combination of my 9-5 and a side gig. Depending on the exchange rate, I make between ₦1m and ₦1.6m every month.
Occupation: Content writer
What can you afford on your salary? I barely check the price of things under ₦50k. I can pay black tax and give my partner money — about ₦100k – ₦150k/month without flinching , and indulge in pleasures like eating out and ordering in, and even getting tattoos. I need to cut down on my feeding spend though; my food budget currently sits at about ₦400k/month.
Paint a picture of the quality of life you thought your salary would give you before you started earning it? Now that you are there, what does it look like? I thought it’d be enough to put me in a place where I can comfortably afford high-end wants: A very good phone and a car at the top of that list. But I’ve realised that I can’t really afford the phone I want, so I’m stuck with the same phone I’ve been using since 2020. It will also take me a year to save for an old Corolla, which starts at about ₦5m. It’s not a worthy goal at this earning stage.
Do you feel like you belong to the Nigerian middle class? Absolutely. I’m educated, earn a lot of money, and upwardly mobile. Besides, there’s no basic need I can’t afford right now.
What safety nets have you built? Do they feel commensurate with your income? If you asked me this a year ago, I’d tell you that earning this much would eliminate my financial anxiety. But no, the anxiety hasn’t left. No matter how much I save, I don’t feel safe. At the moment, I save 50% of my income, and my savings are about ₦5m, enough to get me through six months of rainy days if I reduce my burn rate. But I can’t classify the money as a safety net. I’m contemplating getting another degree I might have to pay for, so there’s that.
What should you be able to afford but can’t? A car.
Would you say you’re living below, within or above your means relative to your income?
I’m living within my means, but it can be lower.
Seyi, 30
Income: ₦800k. Side gigs bring this to over a million.
Occupation: Ad executive
What can you afford on your salary? For a start, a decent apartment in most parts of mainland Lagos. I have a car I can easily afford to fuel and maintain. I can also order takeout or subscribe to meal plans, and refresh my wardrobe when I feel the need to. Then there’s still enough to cover nightlife costs, and also take at least one or two international trips a year if I want to.
Paint a picture of the quality of life you thought your salary would give you before you started earning it? Now that you are there, what does it look like? My ballpark sum has always been a million, and I didn’t picture it any different from what it is now.
Do you feel like you belong to the Nigerian middle class? With rising inflation, I don’t think I’m quite middle class yet. The way I see it, the current middle class person should earn at least ₦5m monthly.
What safety nets have you built? Do they feel commensurate with your income? Thankfully, I have a rainy day fund and a few investment portfolios. It’s commensurate with my income, but can obviously be more solid.
What should you be able to afford but can’t? More international trips. Why? Exchange rate is doing its thing.
Would you say you’re living below, within or above your means relative to your income? Right now, living just within my means.
Ibrahim, 27
Income: ₦1m/month + ₦150k side gig
Occupation: Product Designer
What can you afford on your salary? I can afford to be impulsive. Some context: I started looking for a new apartment in November 2023, but the places I saw weren’t up to my taste. So when I saw one I liked but was above my budget, I paid immediately. I couldn’t have done that two years ago.
Paint a picture of the quality of life you thought your salary would give you before you started earning it? Now that you are there, what does it look like? Interestingly, it was always about living in a nice apartment in a decent neighbourhood. Also, I always wanted to pay black tax to my family even if they didn’t ask for it. I’m definitely there. Now I’m heading towards getting a car to commute and going on road trips to African countries — flight tickets are expensive.
Do you feel like you belong to the Nigerian middle class? It’s still early days, so it’s hard to say. Instead, I’ll say I’m in a transition phase and all things being equal, I should be able to say I’m middle class in a year.
What safety nets have you built? Do they feel commensurate with your income? My savings and investments are currently worth ₦500k. Considering the scale of the capital projects I’ve embarked on in the past six months — I recently spent ₦3.5m – ₦4m on moving to and furnishing my apartment and setting up my workspace — it’s commensurate with my income. Now, I’m looking at building a safety net of ₦5m – ₦7m before the year ends.
What should you be able to afford but can’t? A car. I feel like I need 2x my current income before considering getting one.
Would you say you’re living below, within or above your means relative to your income? I lived within my means for the past six months. For the most part, my expenses equals my income. A few life(style) changes happened within this period that also set me back a bit. Now that those have been sorted out, I can figure out a process to live below my means to grow my savings and investments.
Jessicca, 28
Income: ₦720k/month
Occupation: Business Growth Manager
What can you afford on your salary? Omo, the life I’m living right now is not it. Don’t get me wrong, it’s decent. However, I feel like my quality of life was much better last year even though I was earning less money. Inflation has sucked out all the gains because I spend so much more on basic expenses. I’m living from paycheck to paycheck.
Paint a picture of the quality of life you thought your salary would give you before you started earning it? Now that you are there, what does it look like? I was pretty certain that I’d been balling, but it was before this government took over. My savings and investments were growing, which was the goal. But I’ve had to dip into my savings in the past few months to meet (un)expected expenses.
Do you feel like you belong to the Nigerian middle class? I guess I do, but I feel poor. On most days, I can’t afford everything I want. An example: My inverter batteries recently got bad, but I can’t afford to change them if I intend to make my upcoming rent. Now, I’m always comparing supermarket prices, and I even buy generic products because the brands I use I’ve gotten ridiculously. The most telling development is that I barely eat out anymore because I just can’t afford to.
What safety nets have you built? Do they feel commensurate with your income? There’s no safety net — only God. It might seem funny, but in February, I was reciting “The Lord is my Shepherd, I shall not want” because I had to renew my car papers, my passport, and apply for a visa.
What should you be able to afford but can’t? OMG, Grapes and Clementines. Imagine not being able to comfortably afford your favourite fruits every day? It’s doing my head in, and I hate it so much.
Would you say you’re living below, within or above your means relative to your income? I genuinely don’t think I’m living above my means, but it appears I am every time I look at my account balance. I never have money for anything. It’s crazy.
Names have been changed for anonymity.
