10 Areas Where Nigerians Spend Their Money in This Economy

A recent study shows that about one-third of Nigerians earn under N100,000 (around $61) monthly. 

Here’s how they typically spend their money: 33% spend about N50,000 ($30) each month, 35% use between N50,000 and N99,000 (up to $55), 19% spend between N100,000 and N199,000 (up to $121), and 10% spend between N200,000 ($122) and N499,000 ($304).

A smaller group, about 2%, spends between N500,000 ($304) and N999,000 ($608), and only 1% of the population spends around N1 million ($609) monthly.

Here are the main areas where Nigerians spend their monthly income in 2024:

1. Food and Groceries (83%)

Most Nigerians spend a large part of their budget on food. Despite rising prices, food remains the top spending priority.

2. Transport (48%)

Nearly half of their income goes to transportation as many Nigerians travel daily for work and other activities.

3. Bills and Utilities (38%)

A portion of income is used for essential services like electricity and internet.

4. Clothing (35%)

Many people allocate a part of their budget to clothing, especially for social and cultural events.

5. Childcare (24%)

For working parents, a substantial amount is directed towards childcare services.

6. Housing (23%)

With the challenge of finding affordable housing, especially in urban areas, a considerable amount goes to rent and home maintenance.

7. Healthcare (18%)

Health expenses are also high, with many depending on private healthcare, which can be expensive. As a private worker, one is entitled to an HMO depending on the private firm.

8. Education (14%)

Education takes up about 14% of the budget, viewed as an investment in the future of children. Government schools have been a better option for parents who can’t afford to pay the lumpsum fees of a private school.

9. Family Support (11%) 

Supporting extended family financially is a common practice, taking up about 11% of income.

10. Clubs and Social Activities (8%)

Although some clubhouses seem to be empty despite economic challenges, Nigerians still spend on their social life. Nigerians prefer going to clubs that are moderate and would not take chunks of their money.