African Families Struggle as Cost of Living Soars: Only 1 in 10 Nigerians Earn Above N1 Million
Across Africa, families are feeling the squeeze as the cost of living climbs, leaving households financially stretched and struggling to make ends meet. A new Risevest Cost of Living Report 2025, surveying 19,000 people in Nigeria, Ghana, Kenya, and Uganda, reveals that most families spend more than half of their monthly income on essentials such as food, transport, and housing. With nearly 50% of respondents reporting outstanding debts, saving and investing remain distant goals for many households.
Nigeria is among the hardest hit, with families in Lagos needing roughly N1.24 million per month to cover basic living costs, far above the median monthly income of N200,225. The survey highlights that only 10.7% of Nigerians earn more than N1 million monthly, while over 25% earn between N200,000 and N499,000. Despite official inflation dropping from 34% in late 2024 to around 20% in 2025, these improvements “haven’t translated to real relief” for most households, leaving families under immense financial pressure.
In Uganda, Kenya, and Ghana, the pattern is similar. Ugandan households spend an average of 66% of their income on necessities, followed by Nigeria at 62.15%, Kenya at 53.13%, and Ghana at 47%. While inflation has stabilized in Uganda at 3.4% and in Kenya at 4.6%, food, transport, and housing costs continue to strain budgets. Ghana’s economy shows signs of recovery, with inflation dropping for eight consecutive months and the cedi strengthening by over 20% against the dollar, yet most households still struggle to build savings or emergency funds.
Despite these challenges, there are signs of cautious optimism. Savings rates in the four countries rose in double digits since 2024, with Nigeria and Ghana leading above 21%. Many respondents now prioritize investing, with real estate, AI, and technology topping their long-term financial goals. However, the gap between saving and investing remains wide, particularly among informal sector workers who often face inadequate pension coverage and little financial security in retirement.
The report paints a clear picture of financial stress and ambition across Africa. Families are trying to balance day-to-day survival with long-term goals like buying homes, paying off debt, and investing. Yet for many, the high cost of living keeps these ambitions just out of reach. Experts warn that unless governments and financial institutions address structural issues such as income disparity and limited access to investment tools, millions of African families will continue to live “on ventilators” financially, surviving month-to-month without real economic breathing space.
source: The sun