Rising Income Inequality: Over One-Third of Employed Nigerians Earn Below N100,000
Lagos, Nigeria – A report from PiggyVest sheds light on the increasingly difficult financial landscape for many Nigerians. The data revealed that around 37% of employed individuals earn less than N100,000 monthly, a steep increase from 26% last year. This rise highlights a growing concern about income inequality and the struggles faced by the working population.
The categorization of those earning N100,000 or less as low-income earners reflects the harsh realities many face, as they grapple with basic living costs like housing and family support. The worsening economic situation, driven by inflation and reduced purchasing power of the naira, exacerbates these financial constraints. As articulated in the report, these low-income earners often resort to loans or financial help from relatives to make ends meet.
Additionally, the report points out a distressing rise in unemployment, with those reporting no income jumping from 20% in 2023 to 28% in 2024. This alarming trend signals the urgent need for economic intervention to combat rising unemployment.
A gender-based analysis reveals further disparities, indicating that 59% of women fall into lower-income brackets compared to 49% of men. This suggests that women face greater challenges in attaining financial security, perpetuating a cycle of economic inequality.
Overall, the findings emphasize the critical necessity for targeted policies to alleviate financial pressures on low-income individuals and to address the overarching issue of unemployment in Nigeria. The study calls for strategic measures to uplift those at the lower end of the income spectrum and ensure that economic growth benefits all segments of society.
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