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The rising cost of living has increasingly reshaped everyday life for millions of Nigerians, as households contend with inflation, higher food prices, increasing transport fares, rising rents and growing utility expenses.
By Wealth Ufford
WHAT were once routine purchases and monthly obligations now require stricter planning and tougher choices, with many families adjusting spending habits to keep pace with an economy that continues to stretch incomes.
Across income groups, concerns over affordability and purchasing power have become more pronounced as essential goods and services consume a larger share of household budgets.
According to Trading Economics, Nigeria’s annual inflation rate increased for the third consecutive month to 15.93 per cent in May 2026, up from 15.69 per cent recorded in April and reaching its highest level since November 2025.
The increase was largely driven by accelerating food prices, with food inflation being the largest component of the consumer basket, rising to 17.8 per cent from 16.6 per cent in the previous month. Transport costs also climbed to 17.1 per cent from 16 per cent, partly reflecting the continued impact of the March fuel price shock linked to tensions in the Middle East.
Prices remained elevated across other sectors, including healthcare, restaurants and accommodation services, as well as personal care, social protection and other goods and services.
Housing has become another major source of concern. Depending on location, renting a one-bedroom apartment can range from about ₦500,000 to ₦2.5 million annually, excluding additional charges that are often required upfront.
Electricity continues to add to household expenses. With persistent power supply challenges, many homes and businesses depend on generators, increasing fuel expenditure.
Petrol currently sells between ₦1,235 and ₦1,300 per litre, while diesel retails between ₦1,650 and ₦1,900 per litre, contributing further to transport and operating costs.
Despite the upward review of Nigeria’s minimum wage to ₦70,000, concerns remain over whether earnings are keeping pace with everyday expenses.
Although the revised wage was introduced to cushion economic hardship, many Nigerians say inflation and increased spending demands have reduced its value in practical terms.
For workers across both the public and private sectors, the challenge is increasingly not only earning an income but ensuring that income is sufficient to cover basic needs.
As the gap between earnings and expenditure widens, a broader question emerges: how are Nigerians adapting to an economy where necessities continue to cost more while incomes remain under strain?
Many are cutting back on non-essential purchases, reducing food portions, buying in smaller quantities and prioritising immediate needs. Others are taking on additional jobs, running side businesses alongside formal employment, sharing accommodation costs or relying on support networks to supplement income.
Beyond statistics and economic indicators, many Nigerians describe the crisis through everyday decisions and personal sacrifices.
For Mrs Ada, a mother, high cost of living has transformed everyday life into a constant struggle to balance household needs with available income.
“The rising cost of living has affected my family tremendously such that living is now a daily struggle,” she said. “I’ve had to make do with what is available rather than what I want because most times what I want is simply not within reach.”
Accordong to her, inflation has weakened the value of household income, making it increasingly difficult to meet basic needs.
“Food, cooking gas, transport and rent put tremendous pressure on me presently,” she added.
Ada believes reducing fuel costs and improving security in farming communities could help lower transport expenses and improve food production.
For Goodness, a young Nigerian worker, the impact has been less about immediate survival and more about changing financial behaviour and delaying personal goals.
She explained that current conditions have made her more intentional with spending, turning previously routine expenses into decisions that require planning and prioritisation.
“I’ve become more disciplined about budgeting, delayed some personal expenses, and focused on increasing my income through skill development and career growth,” she said.
Although she stated her income covers most basic needs, she noted that it often leaves little room for long-term goals, emergencies and the quality of life she hopes to achieve.
She identified housing and data expenses as some of her biggest financial concerns and expressed hope for greater economic stability and opportunities that better reflect the realities facing young professionals.
Recently, the Nigeria Labour Congress, NLC, argued that discussions around minimum wage should be considered within the context of declining purchasing power.
Rejecting the proposal that a ₦100,000 minimum wage would adequately address workers’ challenges, the labour union maintained that Nigerian workers now require significantly higher earnings to cope with present conditions, estimating that about ₦1 million monthly would more realistically reflect current realities if existing conditions remain unchanged.
According to the NLC, this position reflects pressures created by exchange rate volatility, persistent inflation, increases in utility and service tariffs, higher fuel prices and their broader effects on transport, food and household spending.
The union also raised concerns about the declining value of wages and the effect of recent tax policies on consumers.
The position reflects broader concerns that wage growth has not matched rising expenses, leaving many workers struggling to maintain living standards despite remaining employed.
For many Nigerians, survival has become an exercise of constant adjustment. One that continues to test not only income but endurance.
While resilience remains evident amongst Nigerians, questions persist about how long these coping mechanisms can be sustained if the cost of iving continues to outpace earnings.
W.U
June 22, 2026
Tags: Nigeria Labour Congress