What Is the Average Income in Nigeria?

Understanding income levels in Nigeria provides insight into the economic realities faced by its population. This article explores how income is measured, reported figures, factors contributing to disparities, and data collection considerations.

Understanding Nigerian Income Metrics

Measuring “average income” can involve several distinct statistical approaches, each offering a different perspective on economic well-being. Mean income represents the total income of a group divided by the number of individuals in that group. While straightforward, this metric can be skewed by extremely high earners, potentially presenting an inflated view of typical earnings.

Median income, by contrast, is the income level at which half the population earns more and half earns less. This measure provides a more representative view of the income of a typical person, as it is less affected by outliers at the high end of the income spectrum.

Gross Domestic Product (GDP) per capita reflects the total economic output of a country divided by its population, serving as an indicator of average economic prosperity per person. Gross National Income (GNI) per capita is similar to GDP per capita but includes income earned by residents from foreign sources, while excluding income earned by non-residents within the domestic economy. These metrics can differ because GDP focuses on production within a country’s borders, whereas GNI considers the income of a nation’s residents, regardless of where that income is generated.

Reported Average Income Figures

Recent data provides several insights into average income levels in Nigeria. As of 2024, the average monthly salary in Nigeria is reported to be around NGN 340,000, which translates to approximately USD 202.86. The median monthly salary for the same period is NGN 302,000, or about USD 178.12, indicating that half of workers earn below this amount. These figures highlight a difference between the mean and median, suggesting the presence of higher earners pulling up the average.

Regional variations are also notable; for instance, a 2024 survey in Lagos, Nigeria’s largest city, found that 78% of workers earned less than NGN 100,000 (approximately USD 62.50) per month, with a median salary of NGN 60,000 (about USD 37.50). For broader economic indicators, the World Bank estimated Nigeria’s GDP per capita at approximately $6,207 in 2023, measured in purchasing power parity (PPP) and current international dollars.

In terms of nominal value, Nigeria’s GDP per capita was approximately $806.9 in current US dollars in 2024. The country is categorized as a lower-middle-income economy by the World Bank. Official exchange rates for the Nigerian Naira to the US Dollar have fluctuated, with the Central Bank of Nigeria (CBN) reporting rates around NGN 1,532 to NGN 1,535 per US Dollar in mid-August 2025. However, parallel market rates can be higher, reaching approximately NGN 1,550 per US Dollar around the same time, reflecting market dynamics and currency pressures.

Factors Influencing Income Levels

Income levels in Nigeria are significantly shaped by a combination of geographical factors, economic sector dynamics, educational attainment, and occupational choices. A substantial disparity exists between urban and rural incomes, with urban areas generally offering higher earning potential due to increased economic activity and opportunities. Poverty rates are notably higher in rural regions, particularly in northern Nigeria, where access to essential services and infrastructure is often limited.

Different economic sectors offer varying income prospects. While the oil and gas sector is a major source of government revenue, its direct contribution to the overall Gross Domestic Product (GDP) is relatively small. The services sector, however, is a primary driver of economic growth, contributing a significant portion to the GDP. Professions within the financial, technology, and management sectors tend to command higher salaries compared to those in agriculture, which despite being a large sector in terms of GDP contribution, often involves subsistence farming and lower earnings.

Education and skills play a direct role in determining an individual’s earning potential. Higher levels of educational attainment are strongly correlated with increased productivity and consequently, higher incomes. University graduates, for example, typically earn substantially more than individuals with lower educational qualifications. This strong link between education and income contributes to income inequality, as unequal access to quality education can perpetuate disparities.

Data Sources and Measurement Considerations

Income data for Nigeria is primarily collected and disseminated by several key institutions, providing a foundation for economic analysis. The National Bureau of Statistics (NBS) serves as Nigeria’s official statistical agency, responsible for collecting, compiling, and publishing a wide range of economic and social statistics, including income and employment data. International organizations such as the World Bank and the International Monetary Fund (IMF) also compile and report on Nigeria’s economic indicators, often drawing from NBS data and conducting their own analyses.

Measuring income in a diverse economy like Nigeria presents several complexities that can influence the accuracy and comparability of reported figures. A significant challenge arises from the country’s large informal sector, where economic activities are often unregistered and transactions may not be formally recorded. This makes it difficult to accurately capture the full scope of income generated within the economy.

Furthermore, fluctuating exchange rates introduce volatility when converting local currency figures to international currencies like the US Dollar, affecting comparability over time and across different reports. The IMF has also highlighted concerns regarding data deficiencies in Nigeria, noting issues such as fragmented and delayed statistics that can hinder effective economic oversight and analysis.