PIGGYVEST SAVINGS REPORT2025 EDITION

After a significant decline in 2024, the proportion of Nigerians who report earning ₦1,000,000 and above (which collapsed from 6% in 2023 to just 2% in 2024) has bounced back to 5% in 2025.

This small rebound, especially within the higher income brackets, suggests some recovery, but it doesn’t tell the full story.

I’m earning more, but I still feel so poor

Although nominal incomes rose in 2025, many Nigerians still reported feeling financially strained. This is because rising nominal income hasn’t kept pace with the actual cost of living. A closer look at income distribution by generation reveals how unevenly these pressures are felt.

Perhaps reflective of their early stage in the labour market and, for some, ongoing schooling or unstable employment, Gen Z Nigerians are the most likely to report having no income or earning below ₦100,000. Millennials are more evenly distributed across income ranges, and Gen X and Boomers are the most likely generations to appear in the higher income categories.

But how many sources of income do Nigerians actually rely on? Nearly 7 in 10 Nigerians rely on a single income source each month.

After a high in 2023, when nearly four in ten respondents reported earning from two or more sources, reliance on secondary income streams fell sharply in 2024, before adjusting slightly in 2025.

Many who depend on a single income describe feeling squeezed by rising prices and increasingly unstable living costs.

With the current state of this economy, prices are high, and just one source of income is not giving me what I would like.

Blessing, a salary earner in Bauchi.

And what they spend on is unmistakably clear: Food, clothing, utilities, transportation, and housing continue to dominate household spending.

Family and community responsibilities (also known as the "black tax") remain a defining influence on spending behaviour. Among respondents with income streams, a third pay black tax consistently, while another third contribute occasionally.

Among those who pay black tax, the experience of these commitments vary. Some feel firmly in control of their obligations, while others say it is manageable but sometimes challenging. For a smaller but important group, these commitments feel difficult to sustain or overwhelming altogether.

This represents a continued decline in the share of Nigerians who save, extending a three-year downward trend.

When savings decline broadly, households become more fragile, the economy loses a critical source of domestic capital, and inequality widens, not just between rich and poor, but even within the same income brackets.

Odun Eweniyi

Co-founder & COO, Piggyvest.

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Among those who report not saving, a large portion say they do not earn enough to save, followed by those who don’t care about saving, and then those who say they don’t know how to save.

In Nigeria, where a significant portion of the population earns irregular incomes through petty trading, artisanal work, gig/commission-based labour, or subsistence farming, financial decision-making is often driven by immediacy rather than strategy.

Damilola Arogundade, Treasury and Investments Lead, Piggyvest.

Despite these challenges, Nigerians who save are doing so with clear priorities. Building emergency funds remains the top savings goal.

Child(ren) upkeep and starting or growing a business follow closely. Rent and housing remain important priorities, particularly as housing costs continue to rise in major cities.

This should worry all of us. An emergency fund is one of the most basic financial safety nets; it's what stands between a person and financial ruin when the unexpected happens. And in Nigeria, the unexpected isn't rareAmong those who have emergency funds, most have reserves that can cover just between one to three months of expenses, and only a small share report having emergency funds that can cover at least six months of expenses.

Emergency preparedness also differs significantly across age groups. Older adults are significantly more likely to have emergency savings, with Gen X and Boomers reporting higher rates than younger groups. Millennials fall in the middle, while Gen Z are the least financially protected, with only a small share reporting any emergency savings.

Compared with last year, many respondents report that their emergency savings have declined or disappeared entirely. A large number of respondents report having had emergency funds last year but no longer do, or having less now than at this time last year.

Among those who are saving less or not at all for emergencies, rising prices are the primary reason. Inflation continues to outpace income growth, making it difficult to set money aside after covering basic expenses.

Even so, debt remains a significant part of the financial reality for many households. Among those in debt, the most common lenders are friends and family members, followed by cooperative societies and loan apps.

The academic framing for this is the social capital theory. It is the idea that trust-based networks reduce borrowing costs and provide forms of security that formal contracts cannot. Formal debts have historically been inaccessible, predatory, or both. Borrowing from family and friends, by contrast, is embedded in a moral economy. Repayment is not enforced through legal systems but through social consequences – Imagine your debt becoming a discussion point at a family meeting.

Damilola Arogundade,

Treasury and Investments Lead, Piggyvest.

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Nearly seven in ten respondents who reported being in debt owe less than ₦200,000, with the highest share owing under ₦100,000. While smaller groups owe ₦500,000 or more, most borrowing appears to be driven by shortfalls and essential needs rather than by large-scale credit.

The causes of debt reflect a mix of structural pressures and financial habits. Business needs are the most common driver of lender searches. Major expenses such as rent, cars, school fees, or weddings also contribute significantly, as do unexpected emergencies like medical bills. Some respondents attribute their debt to low or no income, overspending, impulse purchases, or gambling.

Most debt is driven by timing, not irresponsible spending. Income tends to come slowly and in small portions, but major expenses arrive all at once. When rent becomes due, when a business needs urgent capital, or when an unexpected bill appears, many Nigerians turn to borrowing not out of choice, but because there's simply no room to wait.

Joshua Chibueze

Co-founder & CMO, Piggyvest.

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When considering repayment, most respondents plan to save up gradually. Many others hope to increase their income or use a portion of their monthly earnings to repay debt, while others plan to negotiate repayment terms or seek assistance from friends and family.

The most sustainable approach to personal debt servicing begins with honest prioritisation. Not all debts are equal. High-interest digital loans should almost always be retired before lower-cost informal debts, even when the social pressure runs in the opposite direction. The avalanche method — directing surplus funds toward the highest-interest debt first while maintaining minimum payments elsewhere — is mathematically optimal. For people who need psychological wins to stay motivated, the snowball method (clearing the smallest debt first) can be more sustainable in practice.

Damilola Arogundade,

Treasury and Investments Lead, Piggyvest.

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When asked to rate their overall financial situation, just about 6% of Nigerians report feeling secure and content. The overwhelming majority describe some form of financial strain.

To better understand the 6% who report feeling secure and content with their finances, we examined their income levels, obligations, and saving habits. Respondents who feel financially secure are found across all income levels, but most fall within low- to middle-income brackets rather than the highest bands.

Among respondents who feel dissatisfied with their progress, 1 in 2 suggest that earning a higher or more stable income would improve their financial satisfaction, followed by saving more regularly and having less debt or more manageable debt.

Among those who feel secure and confident in their finances, more than 1 in 2 (54%) consistently save a portion of their income every month. 21% save whatever is left at the end of the month, and 8% save only when they receive extra income.