A recent report has painted a grim picture of Nigeria’s economic landscape, revealing a significant surge in income inequality. A staggering 37% of working Nigerians now earn less than N100,000 monthly, marking a 9% increase from the previous year.
The PiggyVest 2024 Savings Report highlights the stark reality of Nigeria’s economic divide. Over one-third of the population is now trapped in the lowest income bracket, struggling to make ends meet.
“Our survey suggests that more than one in three Nigerians earn below N100,000 monthly, making it the income bracket with the highest number of Nigerians,” the report stated.
This alarming trend mirrors the findings of the World Bank, which reported that Nigeria experienced a significant increase in poverty in 2024. An estimated 14 million Nigerians slipped into poverty, exacerbating the nation’s socioeconomic challenges.
Gender Disparity in Earnings
The report also exposed a significant gender gap in earnings. Women are disproportionately represented in the lower income brackets, with 59% of women earning less than N250,000 compared to 49% of men. However, in higher income categories, men still maintain a numerical advantage.
Rising Costs of Living and Declining Savings
The rising cost of living has further eroded the purchasing power of Nigerians. A significant majority of respondents reported increased expenses in essential areas like transportation, utilities, and food. Food remains the primary expenditure for most households, with 83% of respondents identifying it as their major expense.
Despite these financial pressures, a small but encouraging trend emerged in savings behavior. Ten percent of respondents reported starting emergency savings accounts in the past year. However, the overall savings rate remains low, with many individuals relying on debt, often from family and friends, to bridge financial gaps.
If You Ask Me: Economic Outlook
The PiggyVest report offers a sobering assessment of Nigeria’s economic situation. With a significant portion of the population struggling to earn a living wage, the country faces a complex set of challenges. Addressing income inequality, poverty, and unemployment will require bold policy interventions and sustainable economic growth.
As Nigeria continues to grapple with these issues, the government and policymakers must prioritize social welfare programs, job creation initiatives, and policies that promote inclusive economic development.
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