A new Cost of Living Report by Risevest shows that Nigeria’s median monthly income stands at ₦200,225, far below the national average of ₦467,267, and even further from what is required to live comfortably in urban centres.

The report reveals that over 80% of Nigerian respondents earn less than ₦1 million monthly, while rent, food, and transport continue to rise. Average monthly food spending stands at ₦104,118, and rent now consumes up to 50% of income for many city dwellers.

Although Nigeria recorded its first month-on-month food price drop in over 13 years in 2025, households say the impact has been limited.

“Economic recovery on paper does not always translate to comfort at home,” said Risevest CMO Eneyi Obi.
“People are stretching every naira, prioritising essentials, and making smarter financial decisions because they have to.”

A notable trend is the shift toward dollar savings and digital investment tools, particularly among middle-income earners seeking protection from currency volatility.

The report concludes that while macroeconomic indicators are improving, true recovery for Nigerians depends on income growth, affordable housing, and sustained cost control.

Middle-Income earners turn to dollar assets…

As local currencies remain vulnerable, Africans are increasingly looking outward. The Risevest’s Cost of Living Report reveals a growing preference for dollar-denominated savings and investments, especially among middle-income earners in Nigeria, Kenya, and Ghana.

In Nigeria, the largest income group, 25.27% earning between ₦200,000 and ₦499,999, is actively diversifying income streams and investing digitally to preserve value.

Similar behaviour is observed in Kenya’s emerging middle earners and Ghana’s professional class.

“People are ready to do more with what they have, if given the right tools and knowledge,” said Risevest CMO Eneyi Obi.
“That’s why making data meaningful is central to our mission.”

The report positions fintech platforms as critical enablers in this transition, offering access to global assets, clearer financial education, and protection against inflation.

Still, concerns over the health of the world’s largest economy linger with investors on high alert ahead of another busy week.

With the US elections just months away, this negative development adds another layer of uncertainty.

Much focus will be on the US CPI print, retail sales, and consumer confidence which are likely to shape expectations around how aggressively the Fed cuts rates.

Regarding the fourth largest economy in Africa, the man theme will be the latest CPI print. One of the key themes in Nigeria in 2024 has been runaway inflation which jumped to 34.2% in June – it’s highest level since 1996.

However, the incoming CPI print is expected to show prices slowing in July, cooling to 33.2% compared to 34.2% in the previous month.

Given the CBN’s aggressive approach towards raising rates, signs of cooling price pressures will be a breath of fresh air for consumers.

It is worth nothing that the Central Bank of Nigeria has raised rates by a whooping 800 basis points in 2024.

Looking beyond inflation, the next key event will be GDP published later this month. After expanding 3% in Q1, it will be interesting to see whether growth can be maintained in Q2.

In the FX space, the Naira continues to gain against the dollar on the official exchange with the spot rate at N1589 as of Monday.

Regarding oil, it has extended its first weekly gain since early July thanks to geopolitical tensions in the Middle East.

Rising oil prices may have a positive knock-on effect for the economy, especially when factoring how a major chunk of revenues is acquired from oil sales. However, this could be cancelled out by the rising cost of fuel imports which is costing Nigeria $600 million per month.

Still, this is set to be another big week for the global commodity due to the monthly outlook from the International Energy Agency.

Talking technicals, Brent has gained over 4% since the start of 2024 with prices trading above $80 as of writing. Key levels of interest can be found at $7, $82 and $82.80.

Lukman Otunuga is Senior Financial Market Analyst with FXTM

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