Rising Inflation Pushes Middle-Income Nigerians Toward Poverty
By JULIET EKANEM
FOR decades, Nigeria’s middle class represented economic stability, social aspiration and a buffer against mass poverty. Today, that buffer is rapidly eroding. Rising inflation, declining purchasing power and soaring living costs are forcing millions of middle-income Nigerians to slide toward financial distress, raising fears that the country’s middle class is on the brink of extinction.
Official figures underscore the scale of the crisis. The National Bureau of Statistics estimates that about 133 million Nigerians are multidimensionally poor, while the World Bank projects that poverty levels could reach 62 per cent by 2026. The African Development Bank puts the middle class at just 23 per cent of the population, a figure that is shrinking under the weight of fuel subsidy removal, naira devaluation and escalating utility costs.
Traditionally defined as those earning between N300,000 and N1.5 million monthly, Nigeria’s middle class once enjoyed modest comfort—home ownership or rent stability, reliable schooling, healthcare access and some savings. Today, that income bracket is no longer a shield against hardship. Food now consumes the bulk of household earnings, while transport fares, rent and electricity bills have surged sharply.
Civil servants, bankers and professionals say the pressure intensified after the 2023 economic reforms. A civil servant, Abdullahi Yusuf, says his salary no longer covers basic needs, while banker Dupe Alao describes a lifestyle of constant financial adjustment, where meat, fruits and family outings have become rare luxuries. School fees and healthcare, once routine expenses, are now postponed or carefully rationed.
Small business owners are also feeling the squeeze. Logistics operator Gbenga Oduwaiye says rising fuel costs, spare-part prices and multiple taxes have forced layoffs and slashed profits, weakening the very enterprises that once absorbed labour and drove local growth.
Economists warn that the shrinking middle class threatens Nigeria’s broader economy. According to agro-economist Sunday Peter, the middle class plays a vital role in job creation, consumption and domestic investment. Its decline, he argues, risks pushing the country into a polarised society of wealth and poverty. Experts are urging urgent inflation control, targeted subsidies and long-term reforms to stabilise costs and restore confidence before the erosion becomes irreversible.
