The Central Bank of Nigeria (CBN) has revealed that Nigerians earning between N150,000 and N250,000 monthly are the most affected by inflation. According to the CBN's latest report, this income bracket experiences the highest price pressure, with inflation eroding their purchasing power more than any other group.
Income Groups and Inflation Impact
The report, titled 'Inflation Experience and Expectations in Nigeria', indicates that households earning N150,000 to N250,000 per month report an average inflation perception of 30.2%, compared to the national average of 27.5%. This group also expects inflation to rise further in the next six months, with a median expectation of 28.4%.
In contrast, lower-income earners (below N50,000) and higher-income earners (above N500,000) report slightly lower perceived inflation rates, at 27.1% and 26.8% respectively. The CBN attributes this disparity to the consumption patterns of middle-income households, which allocate a larger share of their spending to food and transportation, sectors that have seen significant price hikes.
Spending Adjustments and Coping Strategies
The report also highlights how households are adjusting their spending. A significant 78% of respondents in the N150,000-N250,000 bracket say they have reduced their consumption of non-essential items, while 65% have switched to cheaper alternatives. Additionally, 45% have increased their use of savings or borrowed funds to cope with rising costs.
"The middle-income group is caught in a squeeze," said Dr. Yemi Osinbajo, an economist at the Lagos Business School, commenting on the findings. "They earn too much to qualify for social safety nets, but too little to absorb the shock of inflation. Their purchasing power is being hit harder than any other segment."
Policy Implications and Recommendations
The CBN report suggests that targeted interventions, such as subsidized food imports and public transportation support, could alleviate the burden on this demographic. It also recommends strengthening the monetary policy framework to anchor inflation expectations.
However, some analysts argue that the report's findings may be limited by its sample size and methodology. The survey, conducted between March and April 2026, covered 2,000 households across 12 states. Despite these limitations, the report provides crucial insights for policymakers aiming to address the cost-of-living crisis.
As Nigeria continues to grapple with double-digit inflation, which stood at 27.5% in June 2026, the CBN's data underscores the need for a multi-faceted approach to economic stability.
