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Living Hand-to-Mouth? Here's Why Earning Less Than ₦700,000 in Nigeria Isn’t Sustainable
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Introduction
The cost of living in Nigeria has risen significantly over the past few years. Inflation, economic instability, and rising expenses have made it increasingly difficult for many people to live comfortably on average salaries. If your monthly income is less than ₦700,000, you might find yourself struggling to cover basic expenses like rent, food, transportation, and utilities.
In this post, we’ll break down the cost of living in Nigeria, explain why earning less than ₦700,000 means living paycheck-to-paycheck, and explore actionable steps you can take to improve your financial situation.
Understanding the Cost of Living in Nigeria
Nigeria’s economy, like many others across the globe, has been hit hard by inflation, fluctuating currency values, and a range of economic challenges. For many Nigerians, the everyday costs of living can be overwhelming, especially with a weakening naira, high unemployment rates, and rising prices for essential goods and services. The typical cost of living in Nigeria can easily exceed ₦700,000 per month for a single person, particularly in urban areas. To prove that the typical cost of living in Nigeria can exceed ₦700,000 per month for a single person, let's provide a detailed and realistic breakdown of essential monthly expenses. The costs can vary depending on lifestyle, location (city vs rural), and personal circumstances. For the purpose of this analysis, we will focus on major cities like Lagos, Abuja, and Port Harcourt, where the cost of living tends to be higher.
1. Housing Costs
Rent is one of the biggest expenses for most Nigerians. In cities like Lagos, Abuja, and Port Harcourt, monthly rents for a modest one-bedroom apartment can range from ₦50,000 to ₦250,000. This might not include additional costs like maintenance or service charges for gated communities.
Rent varies significantly across different cities and even within neighborhoods in a city. Here is a breakdown for major urban centers:
Lagos: Rent for a one-bedroom apartment in a decent neighborhood can range from ₦150,000 to ₦300,000 per month. In more upscale areas, it can even exceed ₦400,000.
Abuja: Rent for a similar one-bedroom apartment can be around ₦150,000 to ₦300,000. Prime locations can exceed ₦400,000.
Port Harcourt: Rent typically ranges from ₦100,000 to ₦250,000 per month for a one-bedroom apartment.
Estimate (Mid-Range Rent for Decent Neighborhood):
₦200,000
Additionally, service charges, maintenance fees, and security costs in gated communities may increase the total housing costs.
Low Estimate: ₦50,000 (for less expensive areas)
2. Transportation Costs
Commuting is another essential, yet increasingly expensive, cost for Nigerians. With the unpredictable fluctuation of fuel prices and the ongoing rise in public transportation fares, getting from point A to point B can put a substantial strain on one's finances. For individuals relying on private vehicles, fuel expenses can quickly add up, with daily fuel consumption for commuting ranging from ₦500 to ₦1,500 depending on the distance traveled and vehicle efficiency.
For those who use public transportation, the costs remain relatively lower but are still significant. A typical bus or taxi ride can cost between ₦200 and ₦500 per trip, amounting to anywhere from ₦20,000 to ₦60,000 a month depending on commuting habits. When combined with the rising costs of maintaining a private vehicle, transportation can easily become one of the largest monthly expenses for many individuals in urban areas.
Transportation Cost Breakdown:
Low Estimate (Public Transport): ₦20,000/month
High Estimate (Private Transport): ₦60,000/month
3. Food and Meals
Food is another major monthly expense in Nigeria, and over recent years, inflation has driven up prices for both dining out and cooking at home. A simple meal at a roadside eatery—often referred to as "bukka"—might cost around ₦1,000. But when you consider eating out regularly or purchasing groceries to cook at home, food costs can quickly add up.
A balanced diet for one person, consisting of groceries, will often cost between ₦40,000 and ₦100,000, depending on the quality of ingredients and the individual’s food preferences. For those who prefer eating out more frequently, this can rise to ₦150,000 or more, especially in cities where the cost of living is higher. Whether opting for street food, mid-range restaurants, or supermarket shopping, food expenditures are a significant drain on finances.
Food Cost Breakdown:
Low Estimate (Eating Out Moderately): ₦100,000/month
High Estimate (Eating Out + Groceries): ₦200,000/month
4. Utilities and Bills
While many people may overlook utilities, they are essential expenses that add up over time. Basic services like electricity, internet, and phone bills can significantly impact monthly expenses, particularly in urban areas where service reliability is not guaranteed.
In many Nigerian homes, electricity costs range from ₦10,000 to ₦15,000 per month, depending on usage and whether the household relies on a backup generator due to erratic power supply. Internet and mobile phone expenses range from ₦15,000 to ₦20,000 for moderate usage. Additionally, TV subscriptions for services like DSTV or GOTV typically add another ₦10,000 to ₦15,000 to monthly bills, depending on the subscription package.
Despite being “hidden” expenses that may not be immediately obvious, utilities can add a considerable amount to the cost of living. These costs can vary based on individual needs, but when summed together, they can easily exceed ₦50,000 per month.
Utility Cost Breakdown:
Electricity: ₦10,000–₦15,000/month
Internet and Mobile Phone: ₦15,000–₦20,000/month
TV Subscription: ₦10,000–₦15,000/month
Total Utilities: ₦35,000–₦50,000/month
5. Medical Bills and Supplements
Healthcare expenses are another unavoidable cost in Nigeria. While many Nigerians rely on local health facilities, basic medical care such as regular check-ups, treatments for minor illnesses, and health supplements can still add up to a significant sum each month.
Basic health care may cost between ₦15,000 and ₦30,000 monthly, depending on the person's health needs, including doctor visits, medications, or necessary health supplements. Medical emergencies, which can occur unexpectedly, can further push these costs much higher, making it essential for individuals to factor healthcare into their monthly budgets. With the increasing cost of medical treatments and pharmaceuticals, it’s wise to plan for both routine care and emergencies.
Medical Costs Breakdown:
Low Estimate: ₦15,000/month
High Estimate: ₦30,000/month
If a medical emergency arises, these costs can skyrocket.
6. Miscellaneous Costs
In addition to the core expenses—housing, transportation, food, and utilities—there are numerous miscellaneous costs that people often overlook when calculating their monthly expenses. These include clothing, personal care products, social activities, and contributions to family or community obligations.
Clothing and personal care might range from ₦10,000 to ₦20,000 a month, depending on purchasing habits. Leisure activities, socializing with friends, and occasional outings can easily add another ₦10,000 to ₦20,000. Many people also face requests for financial support from family members or friends, particularly in a culture where extended family relationships are crucial. Donations, gifts, and family obligations can push miscellaneous expenses to ₦20,000 or more each month.
While often less visible, these additional costs can add up quickly and put a strain on a budget, especially for individuals with family responsibilities or a busy social calendar.
Miscellaneous Cost Breakdown:
Clothing and Personal Care: ₦15,000–₦20,000/month
Leisure and Social Activities: ₦10,000–₦20,000/month
Family Obligations or Emergencies: ₦20,000–₦30,000/month
Total Miscellaneous Costs: ₦45,000–₦70,000/month
Summary of Estimated Monthly Costs
As shown in the breakdown, the cost of living in Nigerian cities can vary significantly depending on the area in which you live. For those in more affordable, low-brow areas, a monthly living cost of ₦260,000 to ₦365,000 is realistic. However, those residing in high-brow areas may need between ₦475,000 and ₦745,000 to cover their living expenses comfortably.
This range reflects the stark differences in housing, transportation, food, utilities, and other day-to-day expenses based on location and lifestyle.
The Reality: Earning Less Than ₦700,000 Means Sacrifices
When you add up all these expenses, you’ll see why ₦700,000 is a critical threshold for a comfortable life. Without this income, many people are forced to make sacrifices:
Skipping meals or eating unhealthy food to save money
Relying on public transport even when it’s inconvenient or unsafe
Living in substandard housing to cut rent costs
Piling up debt to cover unexpected expenses
How to Break Free from the Hand-to-Mouth Cycle: A Path to Financial Freedom
Living paycheck to paycheck can feel like a never-ending struggle, where each month presents a fresh wave of financial pressure. If you’re earning less than ₦700,000, it's easy to feel trapped in the cycle of limited income and constant bills. But, breaking free from this cycle is possible. It requires a proactive mindset, discipline, and a willingness to take control of your finances. Here are some strategies to help you elevate your financial situation and start building a more secure future:
1. Upskill Yourself: Invest in Your Future
One of the most powerful ways to increase your earning potential is by investing in your own skills. In today’s world, where technology and industries are evolving rapidly, acquiring skills that are in high demand can significantly enhance your job prospects and income. Consider learning skills like:
Digital Marketing: Businesses are always looking for ways to expand their online presence. Knowing how to run ad campaigns, manage social media, or optimize websites can make you a valuable asset to any company.
Data Analysis: With the rise of big data, organizations need individuals who can make sense of numbers. Learning data analysis tools like Excel, SQL, and Python can unlock numerous job opportunities.
Graphic Design: The demand for high-quality design in digital marketing, branding, and content creation is ever-growing. Mastering tools like Adobe Photoshop or Canva can help you land both corporate and freelance opportunities.
Software Development: The tech world is booming, and developers are among the highest-paid professionals globally. Learning how to code or develop software can make you indispensable in the job market.
Platforms like Coursera, Udemy, and LinkedIn Learning offer a vast array of online courses, many of which are affordable and flexible. By dedicating yourself to learning, you can position yourself to command higher salaries, explore new career paths, or even earn additional income through freelancing.
2. Start a Side Hustle: Boost Your Income
Relying solely on a single source of income can keep you stuck in the hand-to-mouth cycle. A side hustle can provide you with the extra cash flow you need to manage your finances better. Here are some ideas to get you started:
Freelancing: Whether it's writing, graphic design, or offering virtual assistance, there’s a growing demand for freelance services. Websites like Upwork, Fiverr, and Freelancer.com can connect you to clients who are willing to pay for your expertise.
E-commerce: Starting an online business can be a game-changer. You can sell anything from clothing, accessories, or electronics through platforms like Jumia or even on social media. E-commerce is booming, and it allows you to tap into a wider customer base.
Food Delivery or Catering: If you have a knack for cooking, this side hustle can be particularly lucrative. You can partner with food delivery apps like UberEats or Jumia Food or even offer catering services for events and parties.
Tutoring: If you have a subject you're passionate about, tutoring can be a rewarding way to earn extra money. Whether it's math, English, or even coding, platforms like Superprof allow you to teach others and get paid for your expertise.
By starting a side hustle, you can supplement your income, build savings, and open doors to new business opportunities.
3. Budget Wisely: Take Control of Your Spending
Creating a budget is a foundational step toward taking control of your finances. A clear budget helps you track your income and expenses, ensuring you know where your money is going. To create an effective budget, follow these steps:
Identify Your Income and Fixed Expenses: Know how much you’re earning each month and list your non-negotiable expenses, such as rent, utilities, and transportation.
Prioritize Savings and Emergency Funds: It’s essential to pay yourself first. Set aside money for savings before spending on discretionary items.
Cut Unnecessary Costs: Identify areas where you can reduce spending. Cancel unused subscriptions, limit expensive habits like dining out, or find cheaper alternatives for everyday purchases.
Tools like mobile budgeting apps (e.g., Money Manager or PocketGuard) can help you organize your finances more effectively. By keeping track of your spending and sticking to your budget, you can start to make significant improvements in your financial situation.
4. Build an Emergency Fund: Prepare for the Unexpected
Life is full of surprises, and some of them can be expensive. Whether it’s a medical emergency, a job loss, or a major repair, having an emergency fund can provide you with peace of mind and protect you from falling into debt. Ideally, you should aim to save enough to cover at least three to six months’ worth of living expenses.
If starting from scratch feels overwhelming, don’t worry. Start small. Even setting aside ₦5,000 or ₦10,000 a month can add up over time. As your income grows or you reduce your expenses, increase the amount you save each month.
5. Explore Higher-Paying Job Opportunities: Know Your Worth
Sometimes, even the best budgeting and side hustles won’t be enough if your primary income isn’t enough to cover your needs. In such cases, it may be time to explore higher-paying job opportunities.
Research Higher-Salary Industries: Take the time to explore industries that offer better compensation. For example, tech, finance, and oil and gas sectors tend to pay higher wages compared to others.
Seek Roles That Align with Your Skills: Leverage your newly acquired skills to apply for positions that offer better pay and career growth. Don’t be afraid to ask for a salary increase or negotiate your pay when you are offered a new job.
By seeking roles that better match your skills and experience, you can dramatically improve your financial situation.
Why Financial Freedom Matters
Living paycheck to paycheck is exhausting. The constant worry about bills, the inability to save, and the uncertainty of the future can wear you down mentally and emotionally. But achieving financial freedom isn’t just about having more money—it’s about peace of mind and the ability to live life on your own terms. When you break free from the hand-to-mouth cycle, you can:
Live Comfortably: No longer will you constantly stress about making ends meet. Financial freedom allows you to enjoy the things that truly matter—family time, relaxation, and experiences that enrich your life.
Save for Future Goals: Whether it’s buying a home, sending your children to a great school, or starting your own business, financial freedom gives you the resources to plan for a brighter future.
Invest in Yourself and Your Family: Financial freedom enables you to invest in self-development, pursue your passions, and provide a better life for your loved ones.
By following these strategies, you can break the hand-to-mouth cycle, build a secure financial future, and live with more freedom, peace, and possibilities. Remember, the journey to financial freedom begins with the decision to take control and make a change.
Final Thoughts: Make the Shift Today
Earning less than ₦700,000 a month in Nigeria can feel like a daunting financial reality. The weight of constant bills, unexpected expenses, and the pressure to make ends meet can be overwhelming. But here’s the truth: it’s not a life sentence. While it may feel like you're stuck in a cycle, you have the power to break free.
With determination, smart planning, and strategic action, you can improve your financial situation, gain more control over your life, and start living the lifestyle you deserve. The key to escaping the hand-to-mouth cycle lies in your ability to change your mindset and your financial habits.
First, recognize that change doesn’t happen overnight. It’s a gradual process that requires commitment. The most successful people didn’t achieve financial freedom by following a simple formula—they did so by staying focused, consistently taking action, and being open to learning and adapting along the way. It’s about building a strong foundation, setting clear financial goals, and taking small but impactful steps every day.
Here’s how you can start making the shift today:
Take Control of Your Expenses: The first step is to understand where your money goes. Start by tracking your expenses for a month to see where you can cut back. Prioritize your essential needs and find ways to reduce costs on non-essentials.
Explore Additional Income Opportunities: Your current income might not be enough, but there are plenty of opportunities for earning more. Whether it’s through upskilling, freelancing, or launching a side hustle, there are multiple ways to boost your income and build a safety net.
Set Clear Goals and Take Action: Without clear goals, it’s easy to get lost in the daily grind. Define your financial goals—whether it's building an emergency fund, paying off debt, or saving for the future—and break them down into smaller, achievable steps. Stay disciplined, take action, and celebrate small wins along the way.
Mindset Matters: Financial freedom starts with your mindset. Shift from a mindset of scarcity and limitation to one of abundance and opportunity. Believe in your ability to improve your situation and take the necessary steps to make it happen.
Remember, financial freedom is within reach. It’s not about how much you earn today—it’s about what you do with what you have. With patience, persistence, and a willingness to learn, you can transform your financial future.
Call to Action:
What steps are you taking to break free from the hand-to-mouth cycle? Are you exploring new income streams, budgeting more effectively, or investing in skills for a better future? Share your journey in the comments below! I’d love to hear about your experiences, challenges, and successes. And if you're unsure about where to start, feel free to ask for advice or resources—I’m here to support you.
Let’s work together to achieve financial freedom and create the life we deserve! Your journey toward a secure, fulfilling future starts today.
