…As income crisis deepens
Nigeria has ranked last among 89 countries in the 2026 Quality of Life Index, as a separate report reveals that nearly 60 percent of citizens earn below ₦100,000 monthly, or have no income – highlighting worsening living conditions and deepening economic strain across the country.
The ranking, published by Numbeo, placed Nigeria at the bottom of its global quality of life assessment, with an overall score of zero. The index evaluates living standards using metrics such as cost of living, purchasing power, safety, healthcare, pollution, and commute time, benchmarked against New York City.
Nigeria also recorded the lowest score in purchasing power, with an index of 8.7—indicating that residents can afford significantly fewer goods and services compared to counterparts in New York. In the Cost of Living Plus Rent Index, the country scored 27.7, reflecting relatively lower prices but disproportionately weaker earning capacity.
Among the six African countries surveyed—South Africa, Tunisia, Morocco, Kenya, Egypt, and Nigeria—the country ranked last across most indicators. Other scores included 33.8 for safety, 48.3 for healthcare, 63.8 for property price-to-income ratio, 87 for traffic commute time, and 70.7 for pollution.
The report’s methodology aggregates data on everyday expenses such as groceries, transportation, utilities, and housing, comparing them to New York City, which serves as the baseline index of 100. These findings align with a separate report by Piggyvest, which paints a stark picture of income distribution and financial wellbeing in Nigeria.
According to the Piggyvest Savings Report 2025, nearly three in five Nigerians either have no income or earn below ₦100,000 monthly. Despite nominal income increases, rising inflation—peaking above 33 percent in 2024—has significantly eroded purchasing power.
“On paper, the economy is stabilising… On the ground, however, the strain hasn’t let up”, the report noted, adding that only 6% of Nigerians feel financially secure. The report further revealed that most households rely on a single income source, leaving them vulnerable to economic shocks. Food, transportation, housing, and utilities account for the largest share of expenses, while more than half of earners also support extended family members—a burden often referred to as “black tax”.
Commenting on the findings, Piggyvest COO Odun Eweniyi noted that increased earnings have not translated into improved living standards. “People are earning more and affording less”, she stated, attributing the trend to currency depreciation and persistent inflation.
The report also highlighted inequality across age and gender lines, with younger Nigerians and women more likely to fall into lower income brackets. On debt, the report found that while only about one in five Nigerians is indebted, borrowing is largely driven by necessity, with most relying on informal sources such as friends and family due to limited access to formal credit.
Despite these challenges, both reports noted the resilience of Nigerians, who continue to adapt through budgeting, side hustles, and informal support systems. However, financial satisfaction remains low, with many uncertain about meeting basic needs each month.
