Average Salary in Nigeria

Nigeria, Africa’s fourth economy, has an average monthly salary of NGN 340,000 (USD 202.86) in 2024, while the yearly equivalent is NGN 4,080,000 (USD 2,406.34).

Like in most countries, the average salary in Nigeria varies widely depending on where an employee is located, the profession, and other factors. In this article, we will dive into many factors to give you a clear overview of Nigeria’s average salaries.

Please note:

• All data in this article are based on official statistics and reports, such as those from the National Bureau of Statistics (NBS) and World Bank reports.
• The official currency of Nigeria is the Nigerian Naira (NGN).
• All figures in the article are gross salaries.
• One NGN equals 0.00060 USD when writing this article. Please double-check the exchange rate at the time of reading.

Key statistics and macros

• Average annual salary: NGN 4,080,000 (USD 2,406.34). Source: Salaryexplorer
• Average monthly salary: NGN 340,000 (USD 202.86). Source: Salaryexplorer
• Median salary: NGN 302,000 (USD 178.12). Source: Salaryexplorer
• Minimum wage: NGN 70,000 (USD 41.77). Source: TradingEconomics
• Gender pay gap: 45%. Source: World Economic Forum
• A recent World Bank report reveals that 47% of Nigeria’s population lives below the international poverty line of USD 2.15 per day, and unless serious measures are taken, it is projected to reach 52%.

Average salary in Nigeria

According to Salaryexplorer, the national average salary in Nigeria is NGN 340,000 (USD 202.86) monthly, which is the equivalent of a yearly average salary of NGN 4,080,000 (USD 2,406.34).

The average salary in Nigeria varies and can reach much lower levels. For instance, according to a survey done in 2024 with respondents from the Lagos region, 78% of workers have an average monthly salary of NGN 100,000 (USD 58.98). It is important to note that Lagos is Nigeria’s largest city and drives 30% of the West African nation’s economy. At the same time, according to the report, only 7% of workers in Lagos earn above NGN 200,000 (USD 117.96) monthly.

Median salary 

The median salary in Nigeria in 2024 is NGN 302,000 (USD 178.12) per month. The median salary implies that 50% of workers earn below this amount while the other half earns above it. This figure provides a more realistic view of typical earnings than the average salary, as it’s less affected by extremely high salaries in certain sectors.

However, the above-mentioned report made in Lagos revealed that the median salary for average workers is NGN 60,000 (USD 35.39), which is lower than the minimum wage of NGN 70,000.

“The economic landscape in Lagos reflects a microcosm of the larger Nigerian economy, where inflation and economic instability have left the average worker in a precarious position. The report highlights the urgent need for measures to address wage disparity and support employee well-being.” Moses Adeolubodun, analyst for Forbes

Minimum wage

As of July 2024, Nigeria’s monthly minimum wage for all employees is NGN 70,000 (USD 41.77).

The president mandated this national minimum wage as a necessary measure to counterbalance food inflation, which has surged to 40.8%. This new minimum wage in Nigeria is a staggering record 134% increase from the previous minimum wage of NGN 30,000 and was implemented as a result of research done by the National Bureau of Statistics.

NBS proved through the Cost of Healthy Diet report that Nigerians needed NGN 1,041 to provide a healthy meal per day for one person, which was not sufficient based on the previous minimum wage.

The Nigerian Government announced that this minimum salary will be revisited in three years. Even though this is a great lesson on how to influence salaries through such research, you need to know that the minimum wage has some exemptions for certain businesses or Nigerian workers:

• Small businesses with fewer than 25 employees are excluded from the minimum wage requirement.
• Workers employed for fewer than 40 hours per week, such as part-time schedules, are exempt from the minimum wage requirements.
• Businesses where employees are paid with commissions or piece rates are also exempt.
• Seasonal workers in industries like agriculture or aircraft members are not covered by the minimum wage.

Average salary by region

Salary variations across Nigeria’s regions are substantial, with urban centers commanding higher wages while others have a lower monthly wage due to key factors, one of them being low labor costs.

Let’s explore the average salaries in different regions:

Lagos (South West has an average monthly salary of NGN 352,000 (USD 207.61), and it is driven by the following:

• High concentration of multinational corporations and hub for banking, fintech, telecommunications, and media industries;
• A significant presence of startup ecosystem driving competitive tech salaries;
• Heavy port activities contributing to logistics and trade-related employment.

Kano (North) – NGN 337,000 (USD 198.76),

• Significant agricultural processing and textile industry presence and a strategic location for trans-Saharan trade;
• A growing retail sector with modern shopping complexes and, at the same time, a strong manufacturing base;

Ibadan (South West) – NGN 324,000 (USD 191.09)

• Major educational and research institution presence, with a growing tech hub with an emerging startup ecosystem;
• Proximity to Lagos creates spillover economic benefits, but with the benefit of lower cost of living compared to Lagos;
• Strong agricultural processing industry.

Kaduna (North) – NGN 305,000 (USD 179.89)

• Industrial center with significant manufacturing centers, as well as military and defense industry;
• Growing service sector with government establishments and strategic railway connection;
• Agricultural processing and textile industry hub.

Average salary by occupation

According to Paylab, Nigeria’s occupational wage structure reveals disparities as in every other country, reflecting both industry differences and structural economic inequalities.

Top management positions have higher pay, with Managing Directors and CEOs earning approximately NGN 1.2-1.3 million monthly.

The technology sector also shows strong earning potential, with Software Engineers ranking third at NGN 896,796 monthly, followed by IT Directors at NGN 887,985. This indicates Nigeria’s growing digital economy.

Notably, the wage gap between the highest and lowest-paying positions is substantial. While top management roles exceed NGN 1 million monthly, essential service workers such as nursery school teacher assistants (NGN 137,456), social counselors (NGN 152,553), and healthcare workers like medical orderlies (NGN 172,749) earn less than NGN 200,000 monthly.

Highest wages

Lowest salary

Gender wage gap

According to a World Bank report, in 2023, in Nigeria, labor force participation for men was 65.9%, while for women it was 52.2%.

The gender pay gap in Nigeria remains significant, with women earning approximately 45% less than men earning in similar positions, according to the Global Gender Gap Report, 2024.

Cost of living in Lagos

As the poverty rate in Nigeria is at risk and the country has grappled with economic hardships, it’s worth investigating the cost of living. The World Bank report on Macro Poverty Outlook projects that Nigeria is at risk of having a poverty rate of 52% if conditions do not improve by 2026.

In Lagos, according to the above-median salary, a large portion of Nigerians earn only NGN 60,000 (USD 35.39) monthly. The respondents from the above-mentioned survey living in Lagos revealed that some of their monthly expenses are as follows:

• Food: NGN 58,000
• Housing: NGN 15,000
• Transportation: NGN 22,000

It is clear that considering these costs, the average worker cannot cover a standard of living, as food contributes to a large proportion of the monthly earnings. At the same time, the following graph demonstrates that the cost of living has increased considerably in the last year:

Source: The State of the Employed, PaidHR

Labor and economic facts about Nigeria

Here are some key labor and economic facts about Nigeria that highlight its challenges and opportunities:

Labor market:

• Labor migration: Nigeria has a significant diaspora, with many citizens emigrating for better economic opportunities. Skilled professionals, especially in healthcare and engineering, often seek jobs abroad due to limited opportunities and better wages elsewhere.
• Employment sectors:
  • Agriculture: It employs roughly 36% of the workforce and remains the largest employer, but productivity is low due to outdated practices and limited mechanization.
  • Informal sector: Around 85% of Nigerian workers are employed in the informal sector. This includes small-scale farming, street trading, and artisanal work, typically lacking job security and benefits.
  • Services and trade: The services sector is growing, including finance, telecommunications, and e-commerce. There’s also a rise in tech jobs, with Nigeria being home to one of Africa’s largest tech ecosystems.

Economic overview:

• 47% of Nigeria’s population lives in extreme poverty. That is under the international poverty line, which is USD 2.15 daily.
• GDP and growth: Nigeria has the fourth largest economy in Africa, with a GDP of approximately USD 199.72 billion in 2024. While the economy has shown resilience, Nigeria’s growth is often dependent on oil and struggles because of insufficient infrastructure and security issues.
• Youth unemployment: Nigeria has a significant youth population, with over 60% of people under 25. However, youth unemployment is high, exceeding 42% in recent years. Many young people struggle to find jobs in formal sectors, pushing them toward informal employment.

FAQ

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Sources:

https://www.salaryexplorer.com/average-salary-wage-comparison-nigeria-c158

https://26055346.fs1.hubspotusercontent-eu1.net/hubfs/26055346/The%20State%20Of%20The%20Employed%20Report%20by%20PaidHR.pdf.pdf

https://genderdata.worldbank.org/en/economies/nigeria

https://thedocs.worldbank.org/en/doc/bae48ff2fefc5a869546775b3f010735-0500062021/related/mpo-ssa.pdf