5 Economic Trends Hurting Nigeria’s Middle Class

Nigeria’s middle class was once the hopeful bridge between poverty and prosperity defined by rising incomes, growing consumption, and economic optimism. However, in 2025, that bridge is weakening. A growing body of data indicates that middle-class Nigerians are experiencing a decline in purchasing power, adjusting their lifestyles, and slipping into economic precarity.

Here are five telling signs that Nigeria’s middle class is shrinking with accurate data:

1. Life Is Getting More Expensive, but Salaries Aren’t Keeping Up

Incomes have largely stagnated while costs for essentials have skyrocketed.

According to the National Bureau of Statistics (NBS), Nigeria’s inflation rate peaked at 33.95% in May 2024, the highest in over two decades. Food inflation alone reached 40.66%, meaning basic meals that cost ₦1,000 in 2021 may now cost over ₦1,400–₦1,600

Meanwhile, average wages for professionals in sectors such as education, banking, and media have remained largely unchanged, eroding their purchasing power.

Many middle-class Nigerians can no longer afford what used to be “standard”: regular supermarket trips, private schooling, or even stable electricity via diesel generators.

2. Consumer Spending Patterns Declining

Consumption habits are a key indicator of middle-class status, and they’re changing dramatically.

According to the NBS, real household consumption in Nigeria dropped by 13.68% year-on-year in Q4 2023 (with a 10.12% decline in Q3). Despite rising disposable incomes, households were forced to cut back sharply due to rising costs.

1. Eating out
2. Buying new clothes
3. Travel and leisure

Many are switching from supermarkets to open markets and from brands to cheaper, unbranded goods.

The shrinking power of the naira is forcing lifestyle downgrades that would’ve been unthinkable five years ago.

3. Private School & Health Enrollments are Dropping

Middle-class families typically invest in private education and healthcare, but this is becoming increasingly difficult. Middle-class families are increasingly relying on government hospitals or cutting back on regular medical checkups and health insurance.

Middle-class safety nets are thinning, putting long-term health and education outcomes at risk.

4. Housing & Mobility Are Becoming Luxury Goods

Rents, transportation, and fuel are all surging.

According to Estate Intel, rents in Lagos, Abuja, and Port Harcourt rose by over 20–30% in 2024–2025 alone.

Petrol costs skyrocketed to ₦617 per litre (and now range from ₦915 to ₦925 in Lagos) after the fuel subsidy removal, while public transport fares rose by 50–100% in major cities.

Many middle-income earners now relocate from city centres to suburbs and even rural towns, sacrificing comfort for affordability.

The dream of owning a home or driving a car is increasingly out of reach. Middle-class symbols now feel like upper-class privileges.

5. Asset Ownership and Savings are in Decline

One major trait of the middle class is the ability to save and build assets. That’s crumbling.

Middle-income households are dipping into savings to survive or, worse, going into debt.

Real estate purchases, personal investments, and pension contributions are declining as inflation erodes disposable income.

The wealth-building habits that sustain the middle class are fading fast.

Nigeria’s middle class isn’t vanishing, but it’s under serious pressure. While elite wealth continues to grow and poverty remains widespread, the middle class is shrinking. If this trend continues, the country risks deeper inequality, lower productivity, and a reduced tax base.

Rebuilding the middle class will require structural reforms not only to boost incomes but also to reduce inflation, increase access to affordable services, and restore purchasing power.