Nearly three in five Nigerians earn below N100,000 monthly or have no income at all, according to the latest 2025 savings report by Piggyvest.
The findings paint a stark picture of mounting financial pressure, as rising living costs continue to outpace income growth across the country.
The report reveals that close to 60 percent of Nigerians fall within the lowest income brackets, while only six percent say they feel financially secure. This highlights a widening disconnect between economic reforms and the daily realities faced by households.
“On paper, the economy is stabilising… On the ground, however, the strain hasn’t let up,” the report stated.
Despite nominal increases in earnings, inflation has significantly eroded purchasing power. Odun Eweniyi explained that although incomes appear higher, their real value has dropped sharply in recent years.
“Inflation peaked above 33 percent in 2024. So people are earning more and affording less,” she said.
Income inequality and vulnerable groups
The report highlights deepening inequality across age and gender groups. Younger Nigerians, particularly Gen Z, are more likely to earn below N100,000 or remain without income, while higher earnings are concentrated among older demographics.
Women are also disproportionately affected, with many falling into lower income brackets.
Dsione Oseni-Elamah warned that persistent wage inequality could weaken the broader economy.
“If formal structures continue to undervalue female labour, it leads to human capital loss and economic inefficiency,” she said.
Rising cost of living squeezes households
Most Nigerians rely on a single source of income, leaving them exposed to economic shocks. Around two-thirds of respondents depend on one income stream, increasing vulnerability amid unstable living costs.
Spending patterns show that food and groceries account for the largest share of expenses, followed by transportation, housing, and utilities.
Family obligations also play a major role. More than half of income earners support extended relatives — a financial burden often referred to as “black tax”.
Savings culture weakening
The report indicates a decline in savings habits. About one in two Nigerians do not save at all, while only four in ten maintain emergency funds.
Eweniyi noted that many Nigerians are forced to prioritise basic needs over savings.
“These aren’t discretionary expenses you can cut,” she said.
Among those who save, the primary goal is building emergency funds, reflecting widespread uncertainty about future income.
Debt driven by necessity
Although only about 20 percent of Nigerians report being in debt, borrowing is largely driven by necessity rather than consumption.
Damilola Arogundade described this behaviour as “rational short-termism”, where immediate needs take precedence over long-term planning.
Many Nigerians rely on informal borrowing from friends and family due to limited access to formal credit systems.
Joshua Chibueze added that irregular income patterns often force people to borrow when major expenses arise.
Resilience amid uncertainty
Despite these pressures, Nigerians continue to adapt through budgeting, side hustles, and informal support systems.
However, financial satisfaction remains low, with more than half unsure if their income will meet basic needs each month.
The report concludes that improving financial resilience will require more than macroeconomic reforms. It calls for systems that promote income stability, savings, and financial confidence.
