Most workers (78%) in Lagos, Nigeria’s commercial hub, earn less than ₦100,000 per month, according to the State of the Employed Report by PaidHR, a Nigerian startup focused on HR management.
The report, based on responses from 1,500 participants, including Lagosians, shows that those aged 20 to 30 years typically earn a median salary between ₦49,000 and ₦73,000.
The report also reveals that most of these workers live above their primary means of income, and people barely have enough to save and invest.
Nigeria, Africa’s most populous country and former economic powerhouse, has faced several economic challenges in recent times, causing it to slip to the fourth-largest economy on the continent this year.
Inflation in the country increased from 21.8% in January 2023 to 34.19% by June 2024. However, it dropped to 33.40% in July, marking the first decrease after more than a year of rising rates.
This economic pressure has pushed many workers to scramble as they try to balance their income between sustainability, savings, and other essentials.
Below are the top 5 things Lagosians are saving for in 2024:
1)Rent
In Lagos, rent is often the most significant financial commitment for many residents. With the city’s rapid urbanization and growing population, there’s more demand for housing than there are available places, which drives up rental prices. According to a Punch report, rent in Lagos has increased by 91% in the past five years.
The constant worry about rent hikes or surprise demands from landlords keeps Lagosians on their toes, making rent the top priority on their financial checklist.
2)Japa (Relocation)
“Japa” is the Nigerian way of saying one is off to find greener pastures overseas. For many Lagosians, saving to “Japa” represents hope for a brighter future—better jobs, improved living conditions, and a safer life.
The financial commitment includes visa costs, plane tickets, accommodation, and settling-in expenses in a new country. The dream of “Japa” is so big that it has practically become a cultural movement, with entire families pooling resources to support the “Japa” aspirations of a member.
3.Education
In Lagos, education is a serious investment. Many people see it as a ticket to a better future. The city’s competitive environment means that securing a quality education doesn’t come cheap. Whether it’s for private school tuition or international study programs, Lagosians save diligently to afford the best education possible.
They’ll save up for years if they have to, just to afford top schools. This financial planning is seen as essential for breaking the cycle of poverty and achieving upward social mobility.
4)Financial Security
Financial security is a primary concern for Lagosians, who understand the importance of having a safety net in an extremely volatile economy.
With sky-high inflation and currency fluctuations, saving for the future is a way to mitigate these risks. More and more people are putting their money into savings accounts to ensure they have enough resources to fall back on during tough times.
5)Emergency Funds
Life in Lagos is unpredictable, one minute you are fine, and the next you are dealing with a surprise medical bill or out of a job. That is why Lagosians know the value of having an emergency stash. These savings act as a financial buffer, preventing them from falling into debt or relying on others in times of crisis.
With the cost of living through the roof and credit not always easy to come by, saving up regularly is a must.
The report further revealed people also save for reasons including starting a new business, funding their children’s education, learning new skills, purchasing property, making investments, planning a wedding, preparing for festive periods, and wig purchases.
