Financial comfort in Lagos, a city known for its high cost of living and fast-paced lifestyle, is influenced by multiple factors. While N100k might be a fairly comfortable figure for a single NYSC member who lives and works in Ikorodu, it might barely scratch the surface for a family of three in Ikeja or the 9-5er who lives on the mainland and braves the daily Mainland-Island commute for work. So, what’s the magic number? What salary can actually make life in Lagos feel comfortable? In this article, we’ll dive into the numbers and explore what it takes to live your best life in Nigeria’s bustling economic hub. But first, what does it mean to be financially “comfortable”?
Defining “Comfortable”
While a comfortable salary is subjective and primarily based on individual needs and lifestyle, a salary can be generally considered comfortable if it allows for a good quality of life without significant financial stress. The level of comfort obtainable, however, differs across income categories, lifestyle and household size. Finance analyst Onome Ohwovoriole explains this below:
• Borderline poor/basic comfort: This category earns within the N70k – N100k/month range. While they can afford the essentials like rent or food, they are not without financial stress. The most affordable single room in Lagos costs an estimated rent of N200k – N300k/year, which is about N16k – N23k of the individual’s monthly income going to rent alone. This leaves them with around N50k – N70k left to figure out food, transportation and the bare utilities.
• Lower Middle Class comfort: This category earns within the N150k – 300k/month range. They can afford essentials like rent and food, but often have to supplement their income with tips or loans.
• Upper Middle Class and entry level rich or affluent Comfort: These two categories earn above the N500k/month mark (usually within the N10m – N100m per annum range) and are lumped together because they can afford to go beyond essential expenses to consider travel, prioritise a better quality of life and other expensive lifestyle choices.
How lifestyle choices impact comfort
According to Onome, spending habits also vary across the income categories, and these lifestyle choices play a huge role in the comfort levels of the individuals in these categories. Single people tend to have a higher propensity to spend compared to families. However, some families have a bigger pool to spend from, especially dual-income households. For the average Lagos household, the bulk of expenses are food and transportation, with between 50% and 70% of the salary going to both categories jointly. The split between both buckets varies depending on household size and lifestyle choices. Food quality also differs from one household to another and across comfort levels.
With food inflation constantly increasing, it means more people are limited to the food options they can afford, regardless of whether their nutritional needs are met. So, while a growing child needs protein like chicken and eggs for brain development, he might have to settle for crayfish if his family can’t afford N8k for a crate of eggs or N5k for a kilo of chicken. Beyond food, transportation and rent, priorities start to change depending on demography. Households with young kids spend a chunk of money on tuition.
For these households, comfort might mean letting go of expensive housing to afford better schooling options for the children. The upper middle class can afford travel, but depending on priorities, they can consider cheaper alternatives, like local destinations, to overseas travel. So, there is comfort, but it is subject to multiple factors.
