Income Gap Widens As New Survey Shows Only 5% Of Nigerians Earn Above N500k Monthly
- There is a new consumer survey report to show how much Nigerians earn, and where the earning opportunities are
- According to the report, most Nigerians still earn under 300,000 monthly, with only a negligible few earning above N1 million
- This is the situation even as inflation has defied all predictions and started rising again
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
As inflation continues to shrink the purchasing power of Nigerians, surveys are revealing an even wider income disparity.
According to the Nigerian Consumer Outlook Report 2025 by the SEID, only about 5% of Nigerians have a monthly income of N500,000 or above.
This figure includes about 0.4% that earn above N1 million naira, and 4.9% that earn above N500,000 monthly.
Source: Getty Images
The survey reveals that this group of individuals are mostly entrepreneurs, high-level professionals, and Nigerian residents who earn in foreign currency.
This shows an almost non-existent middle to upper class, as financial vulnerability deepens in the country.
The report also shows that technical and in-demand skills unlocks the potentials for higher earnings, career mobility and access to opportunities, and underemployment is sometimes connected to a lack of these skills.
The geographical spread shows that while the South West has the highest number of people earning above N900,000, indicating a higher presence of economic opportunities there.
The North west has the lowest share with over 96% earning under N300,000, while the North east has 95.7% earning under N300,000, BUSINESSDAY reports.
Other areas like the South South has 80.6% earning below N300,000, the South East has 81.1% while the South west has 84.3% earning under 300,000 monthly.
Income distribution in Nigeria
On the other end of the spectrum are a large number of Nigerians who earn less than N100,000 monthly, and some with no monthly income.
It reads;
“This data paints a picture of a deeply polarised economy where a small segment controls significant financial power while the rest struggle with survival-level incomes.”
This corroborates the data from the International Monetary Fund (IMF), which says that Nigerians are now poorer than Ghanaians.
Educational levels also appear to be correlated with income potentials, with postgraduate degree holders more likely to earn above N800,000, and first degree holders dominating the N100,000 and N800,000 range.
Interestingly, the larger proportion of unemployed people have a Senior School Certificate (SSCE) or lower qualification, although there are still some without formal education that are thriving as entrepreneurs with high incomes.
Report identifies main source of income
The report also shows that self-employment accounts for the highest source of income with 42.9%, while salary or wages account for 41.14%.
This is not unconnected with the rise in online entrepreneurship, where people run businesses without incurring the costs attached to physical retail stores.
Investments and dividends account for about 7.9% of income, while rents account for 4.4%. About 3.4% have no income at all, according to the report.
Inflation is on the rise in Nigeria
Meanwhile, inflation continues to rise despite the rebasing of the Consumer Price Index in January 2024.
Source: Getty Images
Inflation climbed from 23.18% in February to 24.3% in march 2025, according to the latest CPI report from the National Bureau of Statistics.
This shows a worsening situation for the middle and low-income earners, as the cost of living becomes unbearable.
Nigeria's average income declines again
In related news, Legit.ng reported that the average income per person in Nigeria has reduced to $835.49 in 2025.
A drop in Nigeria’s per capita income means that Nigerians are earning less on average or that economic growth has remained slow relative to population growth.
According to new data from the International Monetary Fund (IMF), the drop represents a 4.73% fall from $877 in 2024, showing the consistent depreciation of household incomes as the cost of living crisis escalates.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
