Omolabake Fasogbon

The culture of saving in Nigeria is dwindling. No thanks to the mounting inflation squeezing disposable income and multiplying hardship in households. 

A newly released savings report by a fintech, PiggyVest highlights a decline in Nigerians’ saving habits. It revealed that only 57 percent of Nigerians practiced saving in 2024, down from 64 percent in 2023.

The report revealed that among the 57 percent of Nigerians who save, only 47percent do so consistently each month, while 10 percent save occasionally,with building emergency fund,  children up keep, rent, and personal education topping the reasons why they save. 

Amid skyrocketing commodity prices and increasing cost of living, focus thus shifted from saving to survival. Moreover, some schools of thoughts have argued that saving money in a critical time like this do not make economy sense, arguing however that excess money should be channeled to  projects or Investment. 

They hinged their position on the uncertainty around speeding inflation that is fast outpacing and eroding savings value. 

“The high cost of living makes it increasingly difficult for the average Nigerian to allocate funds for savings after covering essential expenses. Financial insecurity brought on by job instability and increasing household expenses could also be discouraging regular savings,” the financial analyst/ COO, PiggyVest, Odun Eweniyi said.

Like  Eweniyi submitted, a fashion designer cum fabrics trader, Foluke Daniel noted, “I used to be able to put a little aside either for emergencies or reinvesting in the business. But now, every naira goes straight back into keeping the lights on or the stock shelves full. My customers are feeling it too, hence sales are down. Saving to me seems a luxury now. “

Economic factors notwithstanding, Eweniyi maintained that man cannot not save, noting that keeping up with even small and regular savings remains crucial for financial stability and resilience. 

She said, “It’s undeniable that saving has become more difficult for many Nigerians in the current economic climate.  But, it’s more important than ever to hold on to saving habit, even in the face of these difficulties. 

“When income feels tight, prioritising small, consistent savings can make a massive difference in the longrun, creating even a small buffer for the unpredictable”. 

Lending his voice, the CMO of PiggyVest, Joshua Chibueze said government and financial institutions have a role to play to reignite savings culture, especially through  seamless access to credit and friendly interest rate. 

“We do not expect people to save when they do not even have food on their table, which is the situation of many Nigerians right now.  This is why access to credit is very crucial more than ever, this will empower individuals to transform their lives, upgrade their financial status, and achieve sustainable/ long-term growth.”

Addressing concerns on dwindling savings value, Eweniyi said innovation within the fintech space now allows for inflation-proof savings via products  that are able to grow and enhance wealth, as much as they can preserve wealth. 

She advised on the need to embrace right savings account and more importantly, if necessary, reviewing their strategy to maximise their reserve. 

“There are diverse opportunities that come with saving, which unfortunately, many are oblivion of. Only few people know they can actually make a lot on their saved money. 

“For instance, those looking to build a habit of consistent savings, automated savings plans allow thrm to set aside money daily, weekly, or monthly with the benefit of earning competitive interest rates. These types of structured savings options encourage financial discipline while also offering returns on idle funds.

“On the other hand, flexible savings accounts provide liquidity, allowing users to access their funds anytime while still earning interest. This is ideal for those who need immediate access to cash without sacrificing growth potential.  

“Individuals focusing on long-term financial security can explore locked savings accounts, which function similarly to treasury bills, providing an opportunity to earn higher returns by committing funds for a fixed period. This option is particularly useful for those saving for major financial goals” she stated. 

Continuing, Eweniyi said, “Goal-oriented savings solutions allow individuals to save toward specific targets, such as weddings, tuition, or large purchases, helping them stay committed to financial milestones. For those seeking to hedge against currency fluctuations, foreign currency savings accounts provide a means to store wealth in stable currencies while earning returns.

“Beyond traditional savings, investment platforms offer access to alternative investment opportunities such as commercial papers, bonds, and fixed-income instruments, with the potential for higher yields. These platforms empower individuals to take a more active role in wealth creation by diversifying their portfolios.”

The analyst further highlighted the need to bridge the savings education gap amongst the populace, noting that a number of people do not save because they lack basic knowledge of saving. 

“It is part of our efforts to make sure that people are aware that opportunities exist on savings. There are numerous platforms to spread knowledge including schools, one-on conversation and advertisement, amongst others”, she stated.