How 62% of Nigerians are spending themselves into poverty – Risevest report

When Risevest surveyed 20,020 people across 12 countries for its 2025 Cost of Living Report, it wasn’t just looking for numbers. Out of those, 19,840 responses were usable. But behind every percentage and every average was something harder to quantify: anxiety, adjustment, resilience.

“Every year, when we set out to create the Cost of Living Report, our goal goes beyond collecting statistics,” Eneyi Obi, Chief Marketing Officer, Risevest, wrote about the report. “We want to understand people, their decisions, emotions, and aspirations in the face of shifting realities.”

Nowhere is that reality more visible than in Nigeria, where 16,070 respondents, representing 80.9 per cent of the entire sample, laid bare the financial strain shaping everyday life.

On paper, the average Nigerian in the survey earns ₦467,267.88 per month, about $292.04. But averages hide more than they reveal.

The median income is far lower, at ₦200,225. And 73 per cent of respondents say they earn less than ₦500,000 monthly. The gap between those figures tells the story of inequality. So, a small group of high earners pulls the average upward, while most households struggle far below it.

For many Nigerians, income is only the beginning of the problem. The real crisis lies in how quickly that money disappears.

An average household spends about ₦104,118.39 every month on food, even after a drop from ₦170,494.91 in 2024. Rent now averages ₦75,000, following sharp increases, with parts of Lagos recording surges of over 80 per cent due to housing shortages and an annual deficit of 550,000 units.

Utilities have risen to ₦45,037.74 from ₦31,640.08 a year earlier. Transport costs average ₦52,013.76. Healthcare takes ₦36,437.15. Education requires ₦53,156.78. Childcare costs ₦41,139.09. Religious and family obligations average ₦29,160.38. Clothing and personal care absorb ₦23,753.14. Entertainment and subscriptions, often seen as luxuries, still take ₦15,321.07 and ₦9,293.55, respectively.

By the time these essentials are covered, many households are already in the red.

The data by Risevest shows that 62.15 per cent of Nigerian respondents spend more than 60 per cent of their income every month. Even more alarming, 16.14 per cent spend more than they earn, surviving through savings, borrowing, or informal credit. For millions, this is not a temporary phase but a permanent state of financial fragility.

Income distribution deepens this vulnerability.

About 1,630 respondents, or 10.14 per cent, earn less than ₦50,000 monthly. Another 1,790 people, 11.14 per cent, earn between ₦50,000 and ₦99,999. Some 2,460 respondents, 15.30 per cent, earn between ₦100,000 and ₦199,999.

Even among those often considered “middle class,” pressures remain intense. About 4,060 respondents, 25.27 per cent, earn between ₦200,000 and ₦499,999. Another 2,682, or 16.7 per cent, earn between ₦500,000 and ₦999,999. Just 1,718 respondents, 10.7 per cent, earn between ₦1 million and ₦1.99 million.

For most of these groups, the math simply does not work.

Food inflation has eased, falling to 22.74 per cent in July 2025 from 39.53 per cent a year earlier. But relief is limited. Lower food prices have been offset by rising housing, transport, and utility costs. Life may be cheaper in one area, but the freed-up cash is rapidly being absorbed everywhere else.

Debt has become a coping mechanism. Nigerians in the Risevest survey repay an average of ₦49,681.14 every month. About 26.13 per cent pay less than ₦50,000, while nearly 20 per cent pay ₦50,000 or more. A worrying 5.23 per cent repay over ₦200,000 monthly. These figures reflect households stretching themselves thin to remain functional.

At the same time, respondents say they now save an average of 21.52 per cent of their income, up from 15 per cent in 2024. On the surface, this suggests discipline. In reality, it reflects fear. People save not because they are comfortable, but because they are uncertain. They are preparing for emergencies they know are coming.

The future looks equally uncertain. Nigerians estimate they will need ₦495,317.38 every month in retirement. That figure is more than double the median income. For most workers, old age security remains out of reach.

Read also: Why ₦500,000 is the minimum wage for independent living in Lagos | Cowrywise report

This is the human story behind the data.

“Behind every percentage lies a person trying to make sense of change,” Obi wrote. “The graduate saving for a first investment, the parent adjusting budgets to higher food prices, the entrepreneur balancing between survival and growth.”

The report shows that Nigerians are not passive victims of economic pressure.

Nigerians are adapting. They are cutting costs, rethinking priorities, delaying dreams, and finding creative ways to survive.

As Risevest noted, “Africans are not just reacting to change; they are redefining what financial resilience means.”

Yet resilience has limits.

How Nigeria compares in the Risevest report

Across the four countries analysed, Nigeria stands out for the scale of financial strain.

In Kenya, which accounted for 1,984 respondents or 9.9 per cent of the sample, 53.13 per cent spend more than 60 per cent of their income. The median income is KES 36,111, and 68.88 per cent earn below KES 50,000.

Kenyans save 20.44 per cent of their income, up from 11 per cent in 2024. While costs are rising, especially utilities at KES 16,470.56 and rent at KES 12,743, households show slightly more flexibility than in Nigeria.

Ghana presents a different picture. Among its 1,032 respondents, representing 5.2 per cent of the sample, 47 per cent spend more than 60 per cent of their income. The median income is GHS 7,100.

Ghanaians save 21.25 per cent, nearly double the 13 per cent recorded in 2024. Inflation has eased, with food inflation at 14.8 per cent and overall inflation at 11.5 per cent. But high rents of GHS 6,150 and rising food costs still pressure households.

Uganda, with 516 respondents or 2.6 per cent of the total, records one of the highest stress levels. 66 per cent spend more than 60 per cent of their income, and 28 per cent spend more than they earn. Median income stands at UGX 50,099. Although food and utility costs have fallen significantly since 2024, low incomes mean affordability remains fragile.

Compared with these countries, Nigeria combines high costs, high inequality, and widespread overspending in a way that leaves little room for recovery.

More than numbers

For Risevest, the report is not just about diagnosis but purpose.

Eneyi Obi, Chief Marketing Officer, Risevest

The company argues that wealth creation begins with understanding. “The more people see the bigger picture, the more confidently they can act on it.”

But the data also raises uncomfortable questions. How long can households continue spending themselves into survival mode? How much more can they cut before something breaks?

For now, the answer lies in quiet endurance. Millions of Nigerians are making do with less, saving out of fear, borrowing to survive, and postponing stability. They are managing, but only just.

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