Grace Ashiru
Lagos, the economic hub of Nigeria, is a city marked by stark contrasts. While the towering buildings in its business districts reflect wealth and ambition, the earnings of its residents paint a different picture. In Nigeria’s commercial capital, if you’re making more than ₦200,000 a month, you’re in the minority. The majority of Lagos workers (78%) bring home less than ₦100,000 monthly.
These insights come from the State of the Employed report by PaidHR, a Nigerian startup specializing in HR solutions for businesses. The report, based on conversations with over 1,600 employees—half of whom are between 19 and 35 years old—and employers in Lagos, sheds light on the financial realities of the city’s workforce.
“The report allows us to better understand the challenges faced by salary earners, highlighting how they make their money, where they earn it, and what their income enables them to do,” said Seye Bandele, CEO of PaidHR.
As Nigeria’s cost-of-living crisis intensifies, more than half of Lagosians are now spending beyond their monthly earnings, prompting them to seek additional income streams. A striking 51.2% of workers find themselves with nothing left after covering basic necessities such as food, transport, rent, and utilities. Among these expenses, food stands out as the largest burden, with workers now spending ₦54,000 on food each month, a sharp increase from ₦38,000 in 2023. Transport costs have also risen significantly, climbing from ₦16,000 per month in 2023 to ₦22,000 in 2024.
Recreation budgets are a rarity, with only 30% of people allocating funds for leisure activities. Similarly, saving money has become a luxury that few can afford.
For those who do manage to save, rent is the primary motivator. Interestingly, men generally save more than women, especially married men. However, when it comes to single individuals, women tend to save more than their male counterparts.
Credit solutions are essential for navigating economic challenges, but the report highlights a significant gap in access. A striking 70% of workers in Lagos are without employer-backed loans or credit facilities. This gap presents a prime opportunity for digital lenders to craft credit solutions that cater specifically to these needs.
Additionally, the country’s economic struggles have taken a toll on worker productivity. According to the survey, 55% of workers reported that the economic downturn has negatively impacted their performance at work. While financial stress is a primary factor, a surprising 58% of respondents pointed to their mental health and a lack of employer support as contributing factors to their poor job performance.
