Lagos, Nigeria’s economic hub, presents a stark contrast between its towering business districts and the financial struggles of its residents. According to the State of the Employed report by PaidHR, a startup focused on HR management, a mere 22% of workers earn over ₦200,000 monthly, while 78% earn less than ₦100,000.

The report, which surveyed over 1,600 employees and employers, reveals that the ongoing cost-of-living crisis has led half of working Lagosians to spend more than they earn, relying on additional income streams to make ends meet. More than half of these workers report having no disposable income after covering essentials like food, transport, rent, and utilities. Monthly food expenses have surged from ₦38,000 in 2023 to ₦54,000 in 2024, while transport costs rose from ₦16,000 to ₦22,000 during the same period.

Only 30% of respondents have budgets for leisure activities, and savings are often limited to rent. Interestingly, men, especially married ones, tend to save more than women, although single women save more than single men.

Access to credit remains a significant challenge, with 70% of workers lacking employer-backed loans or credit facilities, indicating a market opportunity for digital lenders to create tailored solutions. The economic hardships are also impacting workplace productivity, with 55% of workers attributing reduced productivity to economic conditions. Additionally, 58% cited mental health issues and insufficient employer support as contributing factors to their declining performance at work.