Top 10 spending priorities for Nigerians in tough times

Nigerians, like many people globally, face economic challenges, as a country where inflation and economic challenges are ever-present, Nigerians are constantly reassessing their spending priorities.

According to a recent report from PiggyVest savings report, Nigerians in tough times shed light on the top financial commitments that dominate their budgets. These spending habits reflect the harsh realities of life in the country.

Here are the top 10 spending priorities for Nigerians in tough Times

Food and groceries – 83%

Food remains the most pressing expenditure for Nigerians, taking up a massive 83% of monthly spending. This is not surprising given the increasing costs of basic food items, which have been heavily impacted by inflation. With survival at the core of most Nigerians’ daily routines, food has become a non-negotiable expense. From staple foods like rice, beans, and garri to perishables like vegetables and fruits, ensuring that every family member has enough to eat has become the priority for most households.

Transportation – 48%

The rising cost of fuel has significantly impacted transportation expenses, and Nigerians are feeling the pressure. According to the National Bureau of Statistics (NBS), fuel prices surged by nearly 15% between October and November 2024, making transportation a major financial burden. Whether it’s commuting to work, taking children to school, or running errands, the high cost of transportation is a reality many Nigerians face, eating up approximately 48% of their monthly budgets.

Bills and utilities – 38%

Power outages and the high cost of running generators, along with the steep bills for internet and mobile services, mean that utility costs are another major concern for many Nigerians. With frequent power supply issues, Nigerians are forced to rely on generators for electricity, leading to inflated fuel costs. Household bills, including internet services and water charges, also form a significant portion of their monthly expenses, taking up 38% of the average Nigerian’s budget.

Clothing – 35%

Clothing remains a necessary expenditure, even during tough economic times. Nigerians, regardless of their financial situation, must meet basic clothing needs for work, school, and social events. Whether it’s buying new outfits for special occasions or replacing worn-out clothes, the need for clothing takes up 35% of many Nigerians’ monthly budgets. Even in times of financial hardship, appearance is still important, making this category a staple in household spending.

Childcare – 24%

Raising children in Nigeria can be expensive, with a significant portion of household budgets going toward childcare. The costs associated with daycare, hiring nannies, and other child-related support services represent 24% of family spending. The investment in children is seen as a long-term commitment, with parents willing to prioritise their children’s care and education to ensure their future success.

Housing – 23%

Housing remains a top priority for Nigerians, with 23% of their monthly income dedicated to securing a roof over their heads. In urban centers, where accommodation costs are high, securing affordable housing is becoming increasingly difficult. For many, rent is a substantial portion of their income, and this priority often dictates their living conditions and overall quality of life. Despite the challenges, ensuring a safe and comfortable living space remains essential for most families.

Healthcare -18%

Health is a critical aspect of life, and Nigerians are increasingly spending more on healthcare services. While public healthcare systems can often be inadequate, many Nigerians prefer to seek private healthcare services for quality treatment. Whether it’s for routine check-ups, emergencies, or managing chronic conditions, healthcare expenses absorb about 18% of monthly income. In a country where health issues can quickly escalate, many are willing to invest in healthcare to protect their well-being.

Education – 14%

Education is highly valued in Nigeria, often regarded as the key to a brighter future. Families spend approximately 14% of their monthly income on school-related expenses, including tuition, supplies, uniforms, and extracurricular activities. With a growing focus on academic success, investing in quality education for children is seen as a crucial long-term goal. For many families, ensuring that their children receive the best education possible is a top priority, even if it means making sacrifices elsewhere.

Family support – 11%

Nigerian culture places a strong emphasis on family support, and it’s common for individuals to share their income with extended family members. Whether it’s helping with medical bills, sending money to elderly relatives, or contributing to family emergencies, about 11% of income is often directed toward family support. This sense of collective responsibility strengthens familial ties but can also place a significant strain on personal finances.

Clubs and Social Activities – 8%

Despite financial challenges, Nigerians continue to prioritise socialisation. Spending around 8% of their income on social activities, such as attending clubs, parties, and other gatherings, remains common. Social events play a vital role in Nigerian culture, providing opportunities for relaxation, networking, and maintaining relationships. Even in tough times, people still find ways to enjoy these moments, reflecting the importance of community and togetherness.