Despite recording some of the highest income levels in the country, residents of Abuja and Lagos are increasingly finding out that higher earnings no longer guarantee financial comfort, as soaring rents and rising living costs continue to consume household budgets.

Findings from a recent survey from SBM Intelligence on quality of life across selected states reveal a growing affordability crisis in Nigeria’s major urban centres, with rent inflation emerging as one of the biggest pressures on families and workers.The survey ranked Abuja highest on income, scoring 3.16 out of five. More than 41 per cent of respondents in the Federal Capital Territory (FCT) reported earning between

N500,000 and N999,999 monthly, while nearly 10 per cent earned above N1 million.

Cross River followed with an income score of 3.04, supported largely by respondents earning between N250,000 and N499,999 monthly.

Yet the income advantage enjoyed by residents of Abuja is being steadily eroded by rising housing and transportation costs. Respondents reported that a substantial share of their earnings is spent on rent, commuting and utility bills, leaving little room for savings or emergency expenses.

One Abuja civil servant captured the growing strain, noting that annual rent and transportation costs often consume such a large portion of income that workers spend the rest of the year attempting to recover financially.

The affordability challenge is even more pronounced in Lagos, where the survey recorded the lowest scores for both housing affordability and the overall cost of daily family life. Lagos scored 1.63 on housing affordability and 1.71 on daily living costs, reflecting the mounting burden faced by residents in Africa’s largest city.

Industry data reinforce the findings. In some parts of Lagos, residential apartments that rented for about N500,000 annually in 2023 now command as much as N2.5 million. Rent increases of between 15 and 20 per cent have also been reported across parts of Lagos and Abuja, further stretching household finances.

At the same time, rising construction costs continue to push housing further beyond the reach of average earners.

Estimates show that the cost of developing a one-bedroom apartment rose from about N75 million in 2024 to more than N100 million in 2025. Developers, facing higher financing and building material costs, are increasingly concentrating on premium housing projects, widening the affordability gap for middle-income households.

The survey’s findings suggest that income levels alone no longer provide an accurate measure of living standards. While Abuja residents may earn more on average, the high cost of accommodation and daily living significantly reduces their purchasing power.

In contrast, Kano, which ranked lowest on income with a score of 2.08, emerged as the most affordable state for daily living, scoring 3.53. Rivers State also performed strongly, combining relatively affordable housing with manageable living costs.

Commenting on the survey, analysts at SBM Intelligence say the widening disconnect between earnings and affordability highlights the need for urgent policy interventions.

These include expanding affordable housing supply, improving transport links between satellite communities and city centres, strengthening tenant protection mechanisms, and encouraging investments in social infrastructure.

Without such measures, the geopolitical research and consulting firm warn that Nigeria’s leading economic and administrative hubs may continue to attract workers with the promise of opportunity, only to confront them with a cost-of-living reality that steadily undermines their financial wellbeing. (The Sun)