Nigeria’s Poverty Trap: Low Incomes, Soaring Costs, and a Nation on the Brink

Despite being Africa’s largest economy, Nigeria remains trapped in a deepening poverty crisis. Millions of citizens struggle with inadequate incomes, rising living costs, and limited access to social protection. A new report from the Nigerian Financial Services Market (NFSM) reveals that nearly half of the country’s population earns less than ₦50,000 monthly, an amount that barely covers basic necessities.

A Nation of Hustlers Without Safety Nets

The informal sector dominates Nigeria’s employment landscape, accounting for more than 85 percent of the labour force. From street vendors to motorcycle taxi operators, hairdressers to domestic workers, millions survive without formal contracts, job security, or benefits. Their daily income is unstable and often falls short of meeting essential needs. The National Bureau of Statistics (NBS) confirms that more than 40 percent of Nigerians live below the national poverty line. A recent World Bank report adds that Nigeria must diversify its economy and invest significantly in human capital development to achieve long-term stability and inclusive growth.

The Deepening Divide

Income inequality remains a major concern. A small elite group of senior executives and high-ranking professionals who take home what would be considered substantial a couple years back now have their purchasing power eroded by a stifling high inflation rate. Month. The average Nigerian worker earns between ₦30,000 and ₦50,000 barely covering for their essential bills and unable to save or plan for the future.

With over 90 percent of Nigerians paying out-of-pocket for healthcare, education, and access to clean water, the impact of low income extends beyond personal hardship. It weakens consumer spending, stifles the growth of small and medium enterprises, and discourages investment. Banks become reluctant to lend, and individuals without savings are left without financial buffers.

Turning the Tide

Addressing Nigeria’s poverty crisis requires a long-term, strategic approach. Creating quality jobs and improving incomes must become a national priority. Targeted investments in agriculture, manufacturing, and technology can help absorb large numbers of workers and stimulate sustainable economic growth. There is also a need for labour reforms that protect informal workers and provide them with essential benefits and job security. Without these measures, millions will continue to remain vulnerable and economically marginalised.

Human capital development is another critical area. Improving access to quality education and healthcare will boost productivity, promote innovation, and support inclusive growth across all sectors.

A Call for Bold Action

For Nigeria to move forward, economic progress must be felt by all. Policymakers must act with urgency and commitment to ensure that employment translates into a meaningful standard of living. The goal is not just survival, but a dignified life where every citizen has the opportunity to thrive.