CBN Survey: 68.4% of Nigerians Earning Below N70,000 Feel Inflation Hardest

About 68.4% of Nigerians earning below N70,000 perceived inflation as high in August 2026, the highest level recorded across the income categories surveyed by the Central Bank of Nigeria. The figure compares with 30.8% among households earning above N450,000.

The N70,000 threshold is Nigeria's current minimum wage, suggesting lower-income households continued to feel rising prices far more acutely than higher earners. The finding comes from the CBN's latest inflation expectations survey, which showed overall inflation perception remained elevated despite a marginal improvement during the month.

Perception index eases slightly

The Inflation Perception Index stood at 39.6 points in August, down slightly from 40.0 points in July. The share of respondents who perceived inflation as high fell from 66.3% in July to 64.3% in August.

Among households, the decline was marginal, from 67.3% to 67.2%. Businesses recorded a sharper drop, from 65.4% to 61.8%.

Rural households continued to report stronger pressure than urban ones. About 65.7% of rural respondents perceived inflation as high, against 63.2% in urban areas.

Business size also shaped perception. Micro businesses reported the highest perception of high inflation at 101.4%, followed by medium-sized businesses at 63.3%, large businesses at 63.1% and small businesses at 57.4%. Small businesses posted the highest perception of moderate inflation at 32.3%, followed by large businesses at 31.8%, medium businesses at 27.8% and micro businesses at 24.7%.

Energy, insecurity and exchange rate top the list

Households and businesses both named energy costs, insecurity, interest rates and exchange rates as the major factors shaping their inflation perception. Raw materials, household purchases and the activities of middlemen were seen as less significant during the review period.

Cost impact was heavier on firms. About 60.1% of businesses reported higher expenditure due to inflation in August, compared with 51.9% of households.

Despite the pressure, respondents expect price growth to moderate. The CBN's Inflation Perception Index is projected to fall to 19.9 points in September. While 16.9% of firms expect inflation to ease over the next month, that share rises to 29.4% on a six-month outlook. Among households, 23.2% expect moderation over the next six months.

The CBN said both groups expect inflation-related expenditure to decline gradually over the next six months, with business optimism driving much of the expected easing.

Where headline inflation stands

Nigeria's headline inflation rate declined to 15.43% in July 2026, a 0.48 percentage point drop from 15.91% in June. Food inflation stood at 20.31% year-on-year in July 2026, down from 26.20% in July 2025.

On a month-on-month basis, however, food inflation climbed to 5.56% in July from 3.75% in June, a 1.82 percentage point increase. In July 2026, Nigerians earning between N150,000 and N250,000 were the most likely to perceive inflation as high.

President Bola Tinubu approved the N70,000 minimum wage in July 2024, with a promise to review the law every three years.

Data from the PiggyVest Savings Report 2025 shows about 3 in 10 Nigerians earned below N100,000 per month, the largest income bracket. The report also found 28% of Nigerians had no income, up from 20% in 2023 and unchanged from 2024. Nearly 3 in 5 Nigerians either had no monthly income or earned below N100,000. The share earning N1 million and above recovered to 5% in 2025 from 2% in 2024.

For households at the minimum wage line, the gap between their inflation experience and that of top earners is now more than double. That split keeps pressure on consumer spending and on the small businesses that depend on it.