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Friday, September 30, 2011

A Survey of Nigeria's Growing Middle-Class

This is basically a survey of middle-class Nigerians I found on which states that they earn between N900,000 ($5,760) to N1.2M ($7,680) per year. The findings are really fascinating. Check it out;

A recent survey by Renaissance Capital of the booming Nigerian middle-class delivered some interesting results.
Renaissance’s findings are summarised below:

The survey was conducted with 1,004 middle-class Nigerians, with an average monthly income of between N75,000 and N100,000 (US$480 and $645). Participants were drawn from the cities of Lagos, Abuja and Port Harcourt. 70% of respondents were aged 40 and younger.

Education and work: 92% of middle-class Nigerians surveyed have a post-secondary education or have studied at higher institutions of learning. 99% have one or more members of their household in full- or part-time work. The majority (76%) work in the public sector, while 22% work in the private sector. About half of the middle-class population are skilled professionals in paid employment, while 38% are entrepreneurs. Only 2% are employed in other forms of work or are part of a NGO.

Attitudes: The report notes that middle-class Nigerians are concerned about the welfare and upbringing of their children and the values they grow up with, hence the overall sentiment that children must complete high school in a Nigerian institution. However, more than half aspire to send their children overseas to complete their tertiary education. 35% would like their children to become engineers and 34% would like them to become doctors.

Car ownership: 45% of middle-class Nigerian households do not own a car. The average number of cars per middle-class household is 0.8.
Banking: Although banking penetration in Nigeria is generally low, this is not the case among the middle-class. The survey found that 94% of middle-class Nigerians currently have or have previously had a bank account. Just over 9% have owned a credit card, although 42% plan to apply for one in the future. The main reason to have a bank account is to save money (81%). Other reasons are to withdraw money when you need it (42%) and to keep money in a safe place (40%).

Spending habits: Renaissance posed the following question to respondents: What would you do with a large sum of money that you intend to spend immediately? 67% of respondents said they would purchase land or property, while 36% would spend it on education for either themselves or their family. Slightly more than 24% said they would risk it on the stock market and 21% would invest it into agricultural or trading activities.

Household appliances: The vast majority of middle-class households own a refrigerator, electric fan, electric iron and DVD player. However, only 42% own a fridge freezer, and only 8% a washing machine. Between 20% to 25% of respondents plan to buy microwave ovens, washing machines, and dishwashers in the coming year, and another 20% to 25% plan to do so within five years.

Travel: Only 15% of the Nigerian middle-class have travelled abroad. The four most popular international travel destinations are the UK, US, Dubai and South Africa.

Retail outlets: The majority shop at open-air markets (73%) as well as use convenience stores (62%).

Media: Television (98%) and radio (95%) are the most popular sources of information for middle-class Nigerians, while 78% read newspapers and 48% use the internet.

Perceptions about Nigeria: The majority (76%) of respondents are positive about the future of Nigeria, while 17% said they are not and 7% were not sure. Nigeria’s poor electricity supply, unemployment and inadequate infrastructure are key concerns for the middle-class.