Once upon a time, there was a middle class in Nigeria. That status is at risk of extinction and may soon become history with the current economic situation that leaves only two options – rich or poor. The middle class typically refers to a socioeconomic group within a society that falls between the upper class made up of wealthy or affluent individuals and the lower class which consists of those with lower incomes or fewer assets.
While the definition can vary depending on factors like income, education, occupation, and lifestyle, the middle class is generally characterized by financial stability from stable incomes or salaries that allow them to meet their basic needs, afford some luxuries, and save for the future. The middle class will also vary from country to country and often represent the engine of the nation’s economic growth and prosperity.
Estimating the exact size of the middle class in Nigeria can be challenging due to the varying definitions and methodologies used to classify socioeconomic groups. However, according to a report by the World Data Lab, as of 2020, Nigeria had an estimated 22 million people in the middle class. The definition of the middle class in this report was based on individuals with daily expenditures between $11 and $110 in purchasing power parity (PPP) terms.
A recent 2022 survey by the African Development Bank (AfDB) also showed that 23% of Nigerians made up the middle class. The Bank placed Nigeria as a middle-income country (MIC) in its Nigeria Country Strategy Paper 2020-2024 report amidst lingering challenges of security and fragility, slow growth, infrastructure deficit and low level of human capital development notably widespread poverty, high inequality and rising youth unemployment.
The definition of the middle class can vary significantly across countries and regions, as economic conditions, cultural norms, and government policies influence the composition and characteristics of this group. Additionally, the concept of the middle class is dynamic and can evolve in response to changes in the economy, society, and politics.
When the Middle Class Ruled.
There was a time when many Nigerians aspired to get into the middle class. Few were interested in becoming billionaires because the middle class offered that eldorado for one to aspire to a level of comfort and contentment. Many middle-class individuals and their families attain higher levels of education or possess specialized skills that enable them to secure employment in professional or managerial positions.
One of the hallmarks of the middle class is modest home ownership, often indicating a level of financial security and stability that allows them the freedom to own their own houses or aspire to do so. Additionally, middle-class households have discretionary income to spend on goods and services beyond necessities and of course, contribute significantly to consumer spending and economic growth.
The middle class typically have access to quality healthcare and education, either through employer-provided benefits, private institutions, or public services. This social stratum also serves as a pathway for upward social mobility where individuals may start in lower-income brackets but move into the middle class through education, career advancement, or entrepreneurial endeavours. They also tend to be politically and socially active, advocating for their interests, participating in community organizations, and engaging in civil society.
What Is Eroding the Middle Class?
The middle class in Nigeria has faced significant challenges and fluctuations over the years due to a combination of economic, social and political factors, leading to concerns about its decline. Several factors contribute to this situation including periods of economic instability occasioned by the fluctuations in oil prices, which is a significant source of government revenue. Economic volatility can undermine job security, decrease purchasing power, and erode the middle class as well as high inflation rates leading to a decrease in the real value of incomes and savings. This has particularly impacted the middle class, as they may struggle to maintain their standard of living amid rising prices for essential goods and services.
Limited job opportunities and precarious employment conditions especially among young people can make it difficult for individuals to attain or maintain middle-class status. Income inequality in Nigeria is significant, with a small proportion of the population holding a disproportionate share of wealth and income, this concentration of wealth can hinder upward mobility for those in the middle class and contribute to its decline.
Inadequate infrastructure and public services, such as healthcare, education, and transportation also pose challenges for the middle class in Nigeria. The need to invest in private alternatives or cope with substandard public services can strain household budgets and diminish the quality of life. Finally, security challenges, including crime and insurgency in certain regions, can affect the middle class’s sense of safety and well-being. Insecurity may lead to increased spending on security measures and discourage investment and economic activity.
Reversing The Trend by Bridging Social Class Inequality.
While these challenges pose significant obstacles to the middle class in Nigeria, it’s essential to recognize the resilience and adaptability of individuals and households. Efforts to address underlying structural issues, such as promoting inclusive economic growth, improving governance and transparency, investing in education and infrastructure, and fostering a conducive business environment, are critical for rebuilding and strengthening the middle class in Nigeria. Additionally, policies that prioritise social protection, job creation, and poverty reduction can help mitigate the impact of economic shocks and support the expansion of the middle class.
Social class inequality refers to the unequal distribution of resources, opportunities, and privileges among different social classes within a society. Social class is typically defined by factors such as income, wealth, education, occupation, and social status. In societies with significant social class inequality, individuals or groups belonging to higher social classes tend to have greater access to resources and opportunities, while those in lower social classes face barriers to upward mobility and experience disadvantages in various aspects of life. It is in between these two groups that the middle class typically reside.
Key aspects and consequences of social class inequality include income and wealth disparities. This economic disparity can be perpetuated across generations through inheritance and limited access to education and economic opportunities. More importantly, individuals from higher social classes often have better access to quality education, including prestigious schools and universities. This can result in disparities in academic achievement and perpetuate socioeconomic inequalities further deepening the divide between the rich and the poor.
Social class can also influence access to well-paying and prestigious occupations. Higher social classes may have access to networks and resources that facilitate entry into desirable professions, while lower social classes may face barriers such as discrimination and limited access to training and advancement opportunities. Closely linked to social class is health outcomes, where individuals from lower social classes experience higher rates of chronic illnesses, lower life expectancy, and reduced access to healthcare services compared to those from higher social classes.
Finally, social class often determines access to safe and affordable housing, neighbourhood amenities and infrastructure quality. Lower-income individuals and families may be disproportionately affected by housing insecurity, inadequate housing conditions, and exposure to environmental hazards. Higher social classes often have greater political influence and social capital, enabling them to shape public policies and institutions to their advantage. This can perpetuate social class inequality by reinforcing systems that benefit the privileged few at the expense of the marginalised many.
Addressing social class inequality to bridge the divide between the rich and the poor requires comprehensive strategies aimed at promoting social mobility, reducing economic disparities, and ensuring equitable access to education, healthcare, housing, and other essential resources and opportunities. This may involve policy interventions such as progressive taxation, investments in education and social welfare programs, and measures to combat discrimination and promote inclusive economic growth.
While these factors may indicate challenges facing the middle class in some contexts, it’s important to recognize that the middle class is not homogeneous and that there are also instances of growth and resilience within this socioeconomic group. Moreover, governments, policymakers, and civil society organizations can implement policies and initiatives to support the middle class and address the underlying factors contributing to its perceived decline.
