A professor of Economics at the Lagos Business School, Prof. Bongo Adi, has said the middle class is fast disappearing in Nigeria as a result of high inflation, which has eroded the purchasing power of many Nigerians.
He stated this during a webinar on Nigeria’s 2023 political and business outlook organised by the Lagos Business School Alumni Association yesterday.
He said his research has also shown that there is nothing more at the bottom of the pyramid, where many Nigerians have been pushed to.
He said: “The situation that I’ve observed, based on a new research track that I just started with some colleagues here at Lagos Business School, is that there is no more fortune at the bottom of the pyramid, like what we used to say before.
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“The bottom of the pyramid has been pushed to its limit as incomes and purchasing power shrink and the majority of households now depend on mere consumption.”
Also speaking on the proliferation of digital lending companies (or loan apps), he said lending companies are not helping the economy but pushing more Nigerians into poverty.
Prof. Adi explained that most of the loans issued by digital lending companies are for consumption.
He said his research showed that people collect loans via their apps, spent them, and then look for other means to pay back. And in the process, they are pushed further into debt.
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