Is 1 Million Naira a Lot of Money in Nigeria?

Nigeria’s financial landscape can be complex for those unfamiliar with the Naira (NGN). Understanding the purchasing power of 1 million NGN requires a look into the nation’s economic realities, including income levels, daily expenses, and the cost of significant acquisitions. This exploration clarifies what 1 million Naira represents within Nigeria’s economy.

Understanding Naira’s Value

To understand 1 million Naira’s value, consider typical Nigerian income levels. As of July 2024, the national minimum wage is set at NGN 70,000 per month for eligible employees. This figure was increased due to rising living costs and inflation, though currency devaluation has impacted its purchasing power. The average monthly salary across Nigeria in 2025 is estimated to be around NGN 339,000.

The median salary in major economic hubs like Lagos is even lower at NGN 60,000 per month, indicating that a significant portion of the workforce earns below the national minimum wage. Current exchange rates also provide perspective on the Naira’s worth. As of late August 2025, 1 US Dollar is approximately 1,539.76 NGN, while 1 Euro exchanges for about 1,785.71 NGN. These fluctuating exchange rates directly influence the Naira’s international purchasing power and, consequently, its domestic value for imported goods and services.

Cost of Living in Nigeria

One million Naira can sustain a particular lifestyle in Nigeria, with the duration and quality of life largely dependent on location and individual spending habits. Housing expenses represent a substantial portion of the cost of living, typically paid annually rather than monthly. For example, a one-bedroom apartment in Lagos can range from NGN 2,000,000 to NGN 2,714,286 per annum. In Abuja, a two-bedroom flat averages between NGN 4,500,000 and NGN 5,000,000 per year.

Food costs also consume a significant part of a Nigerian’s income. In Lagos, an individual might spend an average of NGN 58,000 per month on groceries and dining out. Transportation expenses vary, with public transport fares ranging from NGN 200 to NGN 500 per ride, and a short ride-hailing trip costing around NGN 800. Petrol prices fluctuate, with current rates between NGN 828 and NGN 1,027 per liter, impacting both personal and public transportation costs. Monthly transportation costs in Lagos can amount to approximately NGN 22,000.

Utility bills, encompassing electricity, water, and internet, fall within a range of NGN 40,000 to NGN 80,000 per month. Due to inconsistent power supply, many households also incur additional costs for generator fuel and maintenance, which can add NGN 20,000 to NGN 60,000 monthly. Internet service averages about NGN 12,500 per month for unlimited basic packages. Considering these expenses, 1 million Naira might cover basic monthly living costs for several months, especially outside the most expensive cities.

What 1 Million Naira Can Buy

Beyond daily expenses, 1 million Naira can cover larger acquisitions or financial commitments. In the automotive market, this amount can secure a used vehicle, though options are older models. Examples include a 2003 Toyota Corolla, a 2001-2005 Toyota Camry, or a 2000 Toyota Sienna, often found around NGN 1 million. Other possibilities include a 2002 Nissan Xterra, a 2005 Honda Accord, or a Volkswagen Golf, with prices varying based on condition and year.

For property, 1 million Naira is unlikely to cover a significant down payment for a modest home, especially in urban centers where annual rents alone can exceed this amount. Property values are substantially higher, meaning 1 million Naira would only represent a small fraction of the total purchase price for even an entry-level property. Starting a small business with 1 million Naira is feasible for very low-capital ventures, such as small-scale trading or service provision, but it would not fund a robust startup requiring significant inventory, equipment, or extensive operational overhead.

Regarding education, 1 million Naira can cover annual tuition fees for some educational levels, particularly in public institutions. Federal universities can have annual fees as low as NGN 35,000, making them highly accessible. Private university fees vary widely, with some of the more affordable options ranging from NGN 98,000 to NGN 464,000 per annum. However, more established private universities can charge significantly more, often exceeding 1 million NGN per year, with some ranging from NGN 600,000 to NGN 5,950,000 annually. For secondary education, annual tuition in private schools can range from NGN 150,000 to NGN 200,000 in some areas, while high-end private secondary schools can charge up to NGN 6.7 million per annum.

Regional Variations and Lifestyle

The purchasing power of 1 million Naira varies across Nigeria’s diverse regions. Major urban centers like Lagos, Abuja, and Port Harcourt have a significantly higher cost of living than smaller towns or rural areas. Rent can be several times more expensive in these cities. A one-bedroom apartment in a prime area of Lagos or Abuja could cost NGN 600,000 to NGN 1,200,000 per month, while a similar dwelling in a smaller city like Ibadan or Enugu might cost NGN 250,000 to NGN 400,000 per month.

This disparity means 1 million Naira affords a more comfortable or extended lifestyle in less expensive regions. In a smaller town, it could cover several months of living expenses, including rent, food, and transportation, allowing for a more relaxed financial situation. Conversely, in a high-cost city, the same amount might only cover basic necessities for a much shorter period, necessitating a more frugal existence. Utility costs, including generator reliance due to power inconsistencies, also tend to be higher in urban areas. This regional difference shows the perceived value of 1 million Naira is not uniform across Nigeria.