Lagos, Nigeria’s economic hub, is a city of stark contrasts. The towering buildings in its business districts symbolize prosperity and ambition, yet the earnings of its residents paint a different picture. In Nigeria’s commercial capital, earning over ₦200,000 per month makes you an exception. The majority (78%) of Lagos workers earn less than ₦100,000.
These figures come from the State of the Employed report by PaidHR, a Nigerian startup specializing in HR management solutions. The company surveyed over 1,600 employees—half aged 19 to 35—and employers in Lagos.
“The report sheds light on the challenges faced by salary earners, highlighting how and where they earn their income, and what their earnings allow them to achieve,” said Seye Bandele, CEO of PaidHR.
As Nigeria’s cost-of-living crisis worsens, many Lagosians are spending more than they earn each month, relying on secondary income streams to make ends meet.
Over half (51.2%) of these workers have no disposable income after covering essentials like food, transportation, rent, and utilities. Food is the biggest expense, with workers now spending ₦54,000 monthly, up from ₦38,000 in 2023. Transportation costs have also risen, from ₦16,000 per month in 2023 to ₦22,000 in 2024.
Only 30% of people budget for recreation, and saving money has become a rare privilege.
For those who manage to save, the main goal is covering rent. On the whole, men save more than women, especially married men, though single women save more than single men.
Although credit solutions are essential during tough economic times, the report highlights a significant lack of access. 70% of Lagos workers do not have employer-backed loans or credit facilities, creating an opportunity for digital lenders to offer tailored credit solutions.
Nigeria’s economic struggles have also taken a toll on worker productivity. 55% of surveyed workers said the economy has negatively impacted their performance, with financial stress being a major contributor. Surprisingly, 58% cited mental health challenges and insufficient employer support as key factors in their decreased productivity.
