A new report from Nigerian digital savings platform Piggyvest reveals the economic pressures impacting Nigerians’ purchasing power, showing that only 1 in 100 citizens spends more than ₦1 million ($609) monthly. The 2024 report, based on data from over 10,000 respondents, underscores a decline in income, savings, and emergency funds, reflecting the struggles of average Nigerians in the face of persistently high inflation.
Although inflation slowed to 32.15% in August 2024, it remains significantly higher than the 2023 peak of 25.08%, largely driven by recent economic reforms under President Tinubu. According to Piggyvest, 65% of Nigerians report earning less than ₦100,000 ($61) monthly, a figure that rises to 86% among those making below ₦250,000 ($151). The report paints a stark picture of household finances, with 68% of Nigerians spending under ₦100,000 each month, indicating limited disposable income. Meanwhile, only 3% report spending over ₦500,000 monthly.
The survey reveals that spending on food remains the largest expense for most Nigerians, despite recent cutbacks, while transportation now ranks second due to subsidy removals on fuel. “It’s like peanuts these days, earning ₦100,000. I find myself stocking money to buy things I could easily afford a year or two ago,” shared one Enugu-based salary earner, capturing the sentiment of many Nigerians adapting to higher costs.
Savings rates have also declined, with the number of Nigerians who save dropping from 64% in 2023 to 57%. Inflation and increasing costs have deterred many from putting money aside, with 10% saving only occasionally. “I used to save, but the increase in school fees, electricity, and fuel costs has made it very difficult,” a civil servant told Piggyvest.
A shift in financial goals is evident in the report: emigration, previously the third most popular saving goal on Piggyvest in 2023, fell to eighth this year. Two currency devaluations have slashed the naira’s value by nearly 70% against the dollar, making travel and relocation prohibitively expensive for many.
Emergency savings are also under strain, with a 5% decrease in Nigerians who have funds set aside for unexpected expenses. Over two-thirds report having no emergency savings, relying on debt to cover sudden costs. Only 15% of respondents managed to increase their savings this year, while 19% with prior emergency funds have exhausted them.
Piggyvest encourages users of the report to closely examine shifts in consumer habits and financial resilience, noting that understanding these changes could help inform strategies around spending, saving, and investment. In a statement, the company highlighted the value of its findings for addressing the realities facing Nigerian households and businesses.
