Why ₦500,000 is the minimum wage for independent living in Lagos | Cowrywise report

A new report by Cowrywise shows that for many young professionals in Lagos, financial independence now starts at around ₦500,000 per month and rises sharply depending on lifestyle choices, housing location, and transport options.

In its January 2026 report, Adulting in Lagos: Earning, Spending, and Building Stability, Cowrywise breaks down the real cost of living in Nigeria’s commercial capital using detailed budget models and real-life examples of young workers navigating housing, food, transport, healthcare, and savings.

The report opens with the story of Bola, a 24-year-old executive assistant earning ₦400,000 monthly, who hopes to move out of her parents’ home in Ikorodu.

Her plan quickly runs into trouble when she discovers that a miniflat in Yaba costs ₦1.8 million annually, with total upfront payments of ₦2.37 million after agency fees, legal fees, deposits, and agreements.

Cowrywise estimates that miniflats in areas popular with young professionals, including Ikeja, Yaba, Shomolu, Ilupeju, and Surulere, now range between ₦1.5 million and ₦2.5 million yearly. This translates to upfront payments of about ₦1.9 million to ₦2.0 million for lower-end apartments and up to ₦3.3 million for higher-end ones.

The report notes that housing alone typically consumes between 30% and 40% of monthly income in Lagos, making rent the biggest barrier to independence for most workers.

Food is another major expense that many young professionals underestimate. The report follows Chidi, a tech worker earning ₦550,000, who initially budgeted ₦50,000 monthly for food and ran out before the end of his first month.

Cowrywise’s food budget shows that basic monthly groceries, including rice, beans, cooking oil, protein, vegetables, bread, gas, and condiments (add garri), cost about ₦100,000 if meals are prepared at home. A tighter budget is placed at ₦90,000, while a more comfortable food budget rises to ₦150,000 monthly.

Read also: Expert pick: 10 savings apps to safeguard your N1 million in 2025

Transport costs further complicate living in Lagos. According to the report, commuters using danfo buses spend about ₦76,000 monthly, while BRT users spend around ₦100,000. Those relying on ride-hailing services such as Uber and Bolt spend as much as ₦461,176 per month.

For workers who own cars, Cowrywise estimates monthly expenses of ₦234,000, covering fuel (₦184,000), maintenance (₦39,000 – we all know this is way more than this), and regulatory costs (₦10,000). This excludes the initial purchase cost of vehicles, such as the ₦5.5 million paid by one example in the report.

The report warns that unless income exceeds ₦1 million, car ownership is likely to place significant financial strain on most professionals.

Healthcare and personal maintenance also add to monthly spending. Basic health insurance plans cost between ₦3,500 and ₦5,000, while mid-tier plans range from ₦7,000 to ₦10,000. Even with insurance, Cowrywise advises budgeting an extra ₦10,000 to ₦15,000 monthly for uncovered medical expenses.

Personal maintenance, including toiletries, haircuts, clothing, and shoes, ranges from ₦53,000 to ₦90,000 per month, depending on lifestyle.

Utilities such as electricity, internet, water, waste disposal, and security typically cost between ₦40,000 and ₦60,000 monthly, according to the report.

When these expenses are combined, Cowrywise’s first budget model shows that minimum independent living requires a monthly income of ₦500,000 to ₦550,000.

Under this scenario, total monthly expenses amount to ₦505,875, including ₦125,000 for rent, ₦100,000 for food, ₦83,200 for transport, ₦53,000 for personal maintenance, ₦40,000 for utilities, and ₦101,175 for emergency savings.

For a more comfortable lifestyle, the second model places required income between ₦800,000 and ₦850,000. This allows for higher rent, better food quality, increased transport spending, and larger savings. Total monthly expenses under this category reach ₦808,836.

The third model, which includes car ownership, shows that professionals need between ₦900,000 and ₦1 million monthly. Transport alone consumes ₦234,000, or about 26% of income, pushing total monthly expenses to ₦901,042.

Beyond expenses, Cowrywise stresses the importance of emergency savings. The report recommends saving 10% to 15% of monthly income and building a fund equivalent to six months of living expenses. For someone earning ₦500,000, this translates to saving between ₦50,000 and ₦75,000 monthly.

The report also highlights how these financial realities affect career decisions. Cowrywise states that ₦500,000 is now the minimum acceptable salary for basic independence, while ₦850,000 is required for comfortable living. Workers are encouraged to negotiate salaries using cost-of-living data and to plan career moves strategically.

To cope with rising costs, the report documents common survival strategies. These include delaying moving out to save aggressively, sharing apartments to reduce rent, and developing side incomes. One example shows a worker earning ₦550,000 supplementing his income with ₦240,000 from freelance work and online teaching.

Cowrywise concludes that while living in Lagos remains possible for young professionals, it now requires careful budgeting, realistic expectations, and disciplined savings. Without preparation, the report warns, workers are only one emergency away from financial crisis.

As the report puts it, the cost of living in Lagos is high, but the cost of living unprepared is even higher.

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