Only 6% of Nigerians Feel Financially Secure - Report

Just six per cent of Nigerians feel financially secure, as inflation, low incomes, squeeze households, according to a Piggyvest Savings Report 2025 released recently.

The report shows that low incomes, persistent inflation and rising family responsibilities continue to erode savings capacity.

It paints a stark picture of financial fragility, revealing that the vast majority of Nigerians are struggling to meet basic needs, let alone build savings or long-term wealth.

It stated that despite nominal income growth, real purchasing power remains weak, leaving many worse off in practical terms.

According to the report, nearly three in five Nigerians either have no monthly income or earn below ₦100,000, while 28 per cent report having no income at all.

It maintained that this concentration at the lower end of the income ladder has significantly limited the ability of households to save, with 60 per cent of non-savers saying they simply “don’t earn enough to save.”

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Inflationary pressures have compounded the problem for Nigerians, as essential expenses continue to dominate household budgets.

Food accounts for the largest share of spending for 72 per cent of respondents, alongside utilities and transportation, while fixed obligations such as rent and school fees further squeeze disposable income.

The report also highlights the weight of extended family support, commonly referred to as “black tax,” with more than half of income earners providing financial assistance to relatives.

This obligation, though culturally ingrained, has further reduced already thin margins for savings.

Financial vulnerability is further exposed by the lack of safety nets, with 60 per cent of Nigerians lacking emergency funds, leaving them highly exposed to unexpected shocks.

Gen Z are more vulnerable

Generational disparities deepen the picture as younger Nigerians bear the brunt of economic pressures.

Among Gen Z respondents, the report shows that 40 per cent report having no income and 37 per cent earn below ₦100,000, with only 31 per cent having any emergency savings.

In contrast, older Nigerians show relatively stronger financial stability, with higher earnings, more diversified income streams and better emergency preparedness.

“While headline economic indicators suggest moderation in inflation and structural reforms are underway, the lived experiences captured in this report reveal a more nuanced reality,” it stated.

The report noted that “income remains concentrated in the lower bands, with a growing share of Nigerians reporting limited or no stable earnings,” while “savings capacity continues to decline, and emergency buffers remain thin.”

It, however, pointed to signs of resilience among households, stating that “Millions of Nigerians continue to save — even in small amounts — prioritising emergency funds, children’s needs, and business growth,” adding that “those who maintain consistent savings habits report greater financial confidence, regardless of income level.”

Despite these efforts, financial insecurity remains widespread.

“A majority of respondents do not feel secure or ahead in their financial journeys, even when they are actively budgeting, saving, and working toward defined goals,” the report stated.

Summing up the outlook, Piggyvest stated, “The story of 2025 is therefore not one of collapse, nor of effortless recovery. It is a story of adaptation,” as Nigerians continue to adjust spending patterns and financial priorities within tight economic constraints.

The report added that “financial progress is not measured only by numbers, but by confidence,” stressing that restoring that confidence will be critical to achieving long-term economic stability.

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