By BIMBO ADEYEMI

₦372,300 Needed Monthly to Survive in Nigerian Cities, Analysis Finds

A single worker living in an urban centre in Nigeria would need about ₦372,300 every month to meet basic expenses and maintain a modest level of financial security, according to an analysis.

The estimate is more than five times the current ₦70,000 national minimum wage and excludes several expenses associated with a fuller living-wage standard, including family support, social activities and skills development.

The findings come ahead of the 2027 review of the national minimum wage, as organised labour prepares to push for a substantially higher wage while employers warn that any new wage floor must take account of business costs and productivity.

Housing & Transport Take the Biggest Share

Housing represents the largest component of the estimated monthly budget.

The analysis allocates ₦125,000, or about 34 per cent of the monthly requirement, to accommodation. The estimate is based on a midpoint annual rent of about ₦1.5 million for a modest room apartment, spread across 12 months.

Transport is the second major expense.

Workers surveyed for the analysis reported spending an average of ₦4,500 daily on commuting, although reported costs ranged from ₦3,000 to ₦6,000. Based on 22 working days, the monthly transport bill reaches approximately ₦99,000.

Together, housing and transport account for roughly 60 per cent of the estimated monthly income.

Food Adds Another Major Burden

Food also consumes a substantial part of the proposed budget.

Using recent National Bureau of Statistics data on the cost of a healthy diet, the analysis puts the minimum monthly food requirement for one adult at about ₦47,670.

That figure assumes the worker prepares meals at home and keeps food spending close to the minimum. Eating lunch outside the home could increase the cost considerably, with the analysis noting that a plate of food at some low-cost eateries can cost around ₦2,000.

Healthcare & Personal Needs

The estimated salary also incorporates healthcare, utilities, personal care and clothing.

Where an employer does not provide health insurance, a worker could subscribe to a private health scheme. The analysis uses a median annual subscription of ₦47,500, equivalent to about ₦3,958 monthly.

It also allocates approximately ₦15,000 for utilities and ₦20,000 for personal care, while about ₦30,000 is provided for clothing and maintaining a decent appearance.

These calculations demonstrate how quickly basic expenses can consume a salary before discretionary spending begins.

Savings Provide a Small Safety Net

The model also assumes that a worker should maintain emergency savings.

Under the analysis, the worker would need to save approximately ₦32,326 monthly to accumulate about ₦1.164 million over three years.

That amount would provide roughly six months of adjusted living expenses if the worker lost his or her job.

The calculation therefore goes beyond immediate consumption. It attempts to account for the financial vulnerability created when workers have little or no savings to fall back on during periods of unemployment.

₦70,000 Minimum Wage Faces Renewed Pressure

Nigeria’s current national minimum wage of ₦70,000 was signed into law in July 2024, replacing the previous ₦30,000 benchmark.

Although the new wage represented a significant nominal increase, persistent inflation and higher living costs have weakened its purchasing power.

It was reported that CBN data showed the real value of employees’ earnings fell by about ₦2.79 trillion in 2024 to ₦25.48 trillion after adjusting for inflation.

The result is a widening debate over whether nominal wage increases are translating into meaningful improvements in workers’ living standards.

Labour Targets a Much Higher Wage

Organised labour has already indicated that it could demand as much as ₦1 million monthly during the next wage negotiations.

At the previous negotiation, labour proposals ranged from ₦615,000 to ₦1 million for a hypothetical six-member household. Negotiations eventually produced the ₦70,000 minimum wage that became law in 2024.

NLC Deputy National President Adewale Adeyanju said the ₦1 million figure reflects current economic realities and that labour would present the economic parameters supporting its demand.

He argued that a living wage should cover necessities including accommodation, food, transportation, healthcare, education, electricity and communication.

Employers Seek a Data-Based Wage Floor

Employers and other stakeholders, however, have stressed the need for evidence-based negotiations.

President of the Precision, Electrical and Related Equipment Senior Staff Association, Rufus Olusesan, called for labour negotiations to rely on data and statistics.

The Association of Corporate Treasurers of Nigeria President, Yinka Ogunnubi, also noted that remuneration can lag behind inflation and emphasised the role of collective bargaining in ensuring that workers benefit when companies raise prices.

The emerging debate therefore extends beyond the size of the next wage figure. It also raises questions about productivity, business sustainability, inflation, purchasing power and the capacity of employers and governments to fund higher wages.

2027 Wage Review Takes Shape

The next minimum-wage review is expected to become a major economic issue as preparations gather momentum.

Labour leaders are already discussing the framework for the Presidential National Minimum Wage Committee, which is expected to bring together government, employers and organised labour.

At the same time, implementation of the existing ₦70,000 wage remains uneven among states and local governments, according to the National Salaries, Incomes and Wages Commission.

The debate is consequently moving toward a broader question: how can Nigeria establish a wage floor that reflects workers’ actual cost of living while remaining sustainable for employers and public finances?

With the 2027 general elections approaching, the wage debate is also likely to attract greater public and political attention.