COMMENTARY: High Cost Of Living And The Battle For Survival In Nigeria

By Timothy Mancha

The rising cost of living has become one of the most pressing realities of everyday life for millions of Nigerians. Citizens continue to grapple with inflation, soaring food prices, higher transport fares, rising rents, and increasing utility costs.

What was once a routine shopping exercise has now become an unbearable burden that demands stricter financial planning and difficult decisions. Many families have been forced to adjust their spending habits to cope with an economy that continues to stretch incomes beyond their limits.

For low- and middle-income earners, the affordability of basic necessities has become a major concern, as essential goods and services now consume a significant share of household income.

Prices have remained high across virtually every sector of the economy, including housing, healthcare, transportation, restaurants, and other essential services.

Housing has become one of the biggest concerns for Nigerians. Depending on the location, renting a one-bedroom apartment now costs between ₦500,000 and ₦2.5 million annually, excluding agency fees, legal charges, caution fees, and other upfront payments.

Electricity is another major household expense. Due to persistent power supply challenges, many homes and businesses rely heavily on generators, leading to increased fuel consumption.

Petrol currently sells for between ₦1,235 and ₦1,300 per litre, while diesel costs between ₦1,650 and ₦1,900 per litre, further increasing transportation and operating costs.

Despite the upward review of Nigeria’s minimum wage to ₦70,000, many Nigerians question whether earnings are keeping pace with the rising cost of living.

Although the wage increase was introduced to cushion the effects of economic hardship, inflation has significantly eroded its value, leaving many workers struggling to meet their daily needs.

For workers in both the public and private sectors, the challenge is no longer just earning an income but ensuring that the income is sufficient to provide food, shelter, healthcare, transportation, and education.

As the gap between earnings and expenditure continues to widen, one question persists: How are Nigerians adapting to an economy where the cost of basic necessities continues to rise while incomes remain under severe pressure?

Many households have responded by cutting back on non-essential purchases, buying goods in smaller quantities, prioritising immediate needs, taking up additional jobs, running side businesses, sharing accommodation costs, and depending on family support networks.

According to Trading Economics, Nigeria’s annual inflation rate rose for the third consecutive month to 15.93 per cent in May 2026, up from April and the highest level since November 2025.

The increase was driven largely by rising food prices. Food inflation climbed to 17.8 per cent from 16.6 per cent, partly reflecting the continued impact of the March fuel price shock linked to tensions in the Middle East.

Beyond economic statistics, many Nigerians experience the crisis through painful daily sacrifices.

At Mile 2 Estate in Lagos, 42-year-old food vendor, Bisi Adebayo, carefully arranges tomatoes on her roadside stall while hoping for enough customers to sustain her business.

Only two years ago, she bought tomatoes and other food items in bulk. Today, she purchases them in much smaller quantities because prices have skyrocketed while her business capital continues to shrink.

“Everything is going up, but my profit is not increasing. Sometimes, I don’t even know what to do anymore. The prices of food items have gone up because of fuel,” she lamented.

Customers now complain about receiving smaller food portions after she increased the price of a plate of rice from ₦200 to ₦300. Yet maintaining previous portions would mean operating at a loss.

Although Bisi pays little attention to economic reports, economists say millions of Nigerians like her are bearing the consequences of subsidy removal, inflation, exchange rate reforms, rising public debt, and currency depreciation.

As debt servicing consumes an increasing share of government revenue, fewer resources remain for social services and programmes that could cushion citizens against economic hardship.

Nigeria’s public debt has continued to rise, with a significant portion of government earnings devoted to servicing loans.

Political economist and lecturer at Legacy University, Okija, Dr. Vincent Eczema, argues that borrowing itself is not the problem. Rather, the concern lies in whether borrowed funds are invested in productive sectors capable of generating jobs, economic growth, and improved living standards.

According to him, when borrowed funds fail to produce tangible returns, the debt burden becomes increasingly difficult to sustain.

He also expressed concern over public spending, insisting that citizens should see visible improvements in infrastructure, public services, and economic opportunities if government borrowing is justified.

For many Nigerians, however, such economic debates seem distant from their daily realities.

Bisi’s concerns are far more immediate.

“We hear ‘Renewed Hope,’ but the hope is no longer there. Cooking gas has become too expensive. We switched to charcoal, but even charcoal is costly. I still buy petrol for my generator because electricity is hardly available.”

For Mrs. Lucy Azubuike, a 38-year-old widow, the worsening economic crisis has devastated her akara and bread business.

She previously relied on the roadside business to provide for her three children. Today, many customers can barely afford the food she sells.

“Sometimes I cry when my children are asleep. There are days we eat only once. I work every day, yet nothing changes.”

She added that government officials continue to collect taxes and levies despite the declining fortunes of small businesses.

Her experience mirrors that of countless Nigerians battling inflation, rising fuel costs, declining purchasing power, and worsening poverty.

Economist Able Ndukwe warns that Nigeria risks deeper poverty unless ongoing economic reforms are carefully implemented.

According to him, fuel subsidy removal and exchange rate reforms have intensified hardship for households already struggling with inflation.

Across markets, motor parks, schools, hospitals, and workplaces, the story remains the same: prices are rising faster than incomes, businesses are struggling, and ordinary citizens are paying heavily for economic reforms and fiscal pressures.

Civil servants and salary earners remain among the worst affected.

The Scary Statistics

Data from the Central Bank of Nigeria and other industry reports indicate that borrowing for survival has increased significantly.

According to the National Bureau of Statistics, 20.8 per cent of Nigerian households borrowed food or relied on assistance from relatives and friends because they could not afford regular meals.

Millions of Nigerians now borrow from fintech platforms every month simply to pay for food, transportation, rent, school fees, and medical bills.

The World Bank also reported that 59 per cent of adults in low- and middle-income countries, including Nigeria, borrowed money in 2024, largely for household consumption and survival.

By 2025, Nigeria had over 425 licensed digital lenders, reflecting the growing dependence on emergency loans.

Ecofin Agency estimates Nigeria’s household debt at approximately $38.7 billion in 2025, driven mainly by inflation and declining purchasing power.

Former Director-General of the Lagos Chamber of Commerce and Industry, Dr. Muda Yusuf, says inflationary pressure remains severe despite marginal improvements in headline inflation.

According to him, food, transportation, energy, healthcare, and restaurant services account for about 87 per cent of inflationary pressure because they represent the largest share of household spending.

He urged governments at all levels to focus on supply-side interventions by reducing energy costs, improving transportation infrastructure, strengthening food production, facilitating trade, and supporting local industries.

 

The Way Forward

Addressing Nigeria’s rising cost of living requires both government intervention and individual resilience.

Government Interventions

Government must pursue sound macroeconomic policies that address the root causes of inflation through:

Effective monetary policies that balance inflation control with economic growth.

Temporary tax relief on essential goods and energy.

Targeted cash transfers and food support for vulnerable households.

Stronger regulation to prevent excessive price manipulation.

Periodic review of minimum wages to reflect inflation.

Increased investment in agriculture to boost local food production.

Improved transportation infrastructure to reduce logistics costs.

Greater investment in renewable energy to reduce dependence on expensive fossil fuels.

Individual Survival Strategies

Individuals also need practical coping mechanisms, including:

Strict budgeting and prioritising essential expenses.

Diversifying income through side businesses and digital skills.

Managing debts carefully and avoiding unnecessary borrowing.

Buying food in bulk through cooperative purchasing arrangements.

Reducing energy consumption and exploring affordable alternative energy sources such as solar power.

Using public transportation, carpooling, and other cost-saving measures.

Adopting affordable local food alternatives where necessary.

Conclusion

For many Nigerians, survival has become an exercise in constant adjustment. Every day brings new financial decisions and fresh sacrifices.

While the resilience of Nigerians remains remarkable, a critical question persists: How long can these coping mechanisms be sustained if the cost of living continues to outpace incomes?

Ultimately, lasting relief will require responsible economic management, productive investments, effective social protection programmes, and policies that translate economic reforms into measurable improvements in the lives of ordinary Nigerians.