Lagos, Nigeria’s bustling economic hub, is a city where wealth and hardship often collide.
Beneath the towering skyscrapers and business districts, the reality for most working Lagosians is grim.
A recent survey by Nigerian startup PaidHR has revealed that the vast majority of Lagos workers are struggling to make ends meet.
The survey, titled State of the Employed, paints a troubling picture of how most Lagosians live on shockingly low wages.
According to the report, 78% of employees in Lagos earn less than ₦100,000 per month.
This staggering statistic has raised eyebrows across the country, as it highlights the financial strain on millions of Nigerians in the commercial capital.
PaidHR, which specializes in helping businesses manage their human resource functions, conducted the survey with over 1,600 employees and employers in Lagos.
The data collected sheds light on the financial challenges faced by the city’s workforce, particularly in the face of Nigeria’s ongoing cost-of-living crisis.
Seye Bandele, CEO of PaidHR, expressed concern about the findings.
“This report helps us understand the plight of people who earn salaries, spotlighting how they earn it, where they earn it, and what their earnings enable them to do,” Bandele said.
Cost of Living is Crushing Lagosians
The survey revealed that more than half of working Lagosians spend more than they earn each month.
With rising inflation and increased costs for basic necessities, many residents are forced to take on second jobs or find other sources of income just to survive.
Food prices have skyrocketed, with the average Lagos worker now spending ₦54,000 per month on food alone.
This is a sharp increase from ₦38,000 in 2023, demonstrating how rapidly inflation is eroding people’s purchasing power.
Transportation costs have also surged, jumping from ₦16,000 per month in 2023 to ₦22,000 in 2024.
These rising costs are putting enormous pressure on Lagosians, leaving many with no disposable income after covering basic needs such as food, transport, rent, and utilities.
One Lagos resident, Femi Adekunle, described the situation as unbearable.
“How can anyone survive on less than ₦100,000 when everything is so expensive? It’s impossible,” he said.
Adekunle, who works as a security guard, said he often has to borrow money from friends just to make it through the month.
Savings and Recreation a Distant Dream
The PaidHR survey also revealed that only 30% of Lagosians have room in their budgets for any form of recreation.
For most workers, leisure and entertainment have become distant dreams as they focus on simply getting by.
Saving money is another luxury that many cannot afford.
While some manage to put aside a small amount, the primary reason for saving is often to cover rent expenses.
Interestingly, the report showed that men tend to save more than women, particularly married men.
However, single women were found to save more than their male counterparts.
Lack of Access to Credit Compounds Problems
For many workers in Lagos, access to credit is crucial for navigating the harsh economic realities.
Yet, the survey found that a staggering 70% of Lagos workers lack access to employer-backed loans or credit facilities.
This gap in financial support leaves many employees vulnerable, especially when faced with emergencies or unexpected expenses.
Bandele emphasized the need for more inclusive credit solutions.
“There is a huge opportunity here for digital lenders to develop tailored credit products that can help workers manage their finances better,” he said.
Mental Health and Productivity in Decline
Beyond the financial struggles, the survey revealed another concerning trend: the negative impact of the economic situation on workers’ mental health and productivity.
More than half of the respondents (55%) admitted that Nigeria’s poor economy has affected their productivity at work.
Many employees pointed to the financial strain they face as a key reason for their diminished performance.
But in a surprising revelation, 58% of workers also blamed their mental health for their declining productivity.
Many employees reported feeling stressed and unsupported by their employers, which has only worsened their work performance.
A City of Contrasts
Lagos has always been a city of contrasts—where extreme wealth exists alongside abject poverty.
The PaidHR survey underscores the growing divide between the rich and the poor in Nigeria’s most populous city.
While the skyline of Lagos may symbolize the ambition and progress of the nation, the everyday realities for most of its residents tell a different story.
For the majority of Lagosians, surviving on a salary of less than ₦100,000 is a daily struggle, with rising costs and a lack of support making life increasingly difficult.
