A recent report by SBM Intelligence, a geopolitical research and communications consulting firm, reveals that five in 10 Nigerians witnessed a growth in their income over the past four years.
This figure is more than double the 18.6% who reported a decline in income.
The report, titled ‘Living Dangerously on Credit,’ surveyed 1,745 respondents across Nigeria’s six geopolitical zones. It disclosed that 27.4% mentioned their income remained unchanged since 2019.
“Respondents who reported increased income attributed it to promotions, changing jobs and increased demand for their goods. In contrast, job losses, salary cuts and reduced sales were cited as reasons for experiencing a reduced income,” the report said.
It said the Nigerian consumer is currently facing significant challenges because of a combination of high inflation, sluggish economic growth and high unemployment rates.
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“This situation has resulted in wage increases that are not keeping pace with rising inflation. This has left Nigerians with little choice but to gorge on credit facilities,” it added.
SBM surveyed 1,745 respondents living in Lagos, Kano, Abuja, Port Harcourt, Awka, Ibadan, Onitsha, Enugu, Bauchi, Nnewi and Calabar, a representation of Nigeria’s six geopolitical zones.
The firm asked questions on whether or not their income has increased, changes they have made to their spending habits and lifestyle and also their debt status since 2019.
“The data contained in this report is only up-to-date as of September 15, 2023. Some of it is subject to change during the natural course of events,” it said.
More respondents from the Northcentral region—representing 28 percent – reported an increase in income compared to those based in other parts of the country. The Southwest followed, with 24 percent of respondents reporting an income increase, authors of the SBM report said.
“Income remained stagnant in Southwest, accounting for 30 percent of the respondents who said their income did not change in the four years between 2019 and 2023,” they said.
They added that respondents from the Southeast reported the biggest decline in income, accounting for 28 percent of all those who said their income had decreased.
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“This was followed closely by the South-South region, where 23.6 percent of the respondents reported decreased income.”
The report also revealed that Nigerians reported spending 97 percent of their monthly income on food as the monthly average spending on food was N105,318 compared to the monthly average income of N108,097.
“Respondents from the Northeast, South-South and Northwest reported spending above 100 percent of their income on food. Those in the Southeast got a little respite, spending 80 percent of their income on food.
“Those in the Southwest and Northcentral reported spending 97 percent and 89 percent of their income on food, respectively,” it added.