Most Nigerians are still struggling financially, even though inflation has been falling and the economy shows signs of stabilising, according to a new nationwide savings survey released on Wednesday.
The 2025 Piggyvest Savings Report, which gathered responses from more than 26,000 people across all six geopolitical zones, found that over half of Nigerians start each month unsure if their income can cover basic needs. Only six per cent said they feel financially secure.
The survey highlights a gap between improving national economic numbers and what households actually experience, more than two years after major reforms like fuel subsidy removal and exchange-rate liberalisation.
Nigeria’s headline inflation fell to 15.06 per cent in February 2026, continuing a year-long decline after tighter monetary policies and more stable foreign-exchange rates.
Despite this slowdown, prices remain much higher than before the reforms, meaning everyday Nigerians still feel little relief.
Low savings and thin financial buffers
The report shows that half of Nigerians do not save at all, reflecting the pressure on their incomes.
Only four in ten respondents said they have emergency funds to handle sudden costs like medical bills or job loss.
Income levels are also low for many. About three in ten adults earn less than N100,000 per month, making it tough for households to keep up with rising living costs.
“For many households, spending is dominated by essentials, leaving little room for discretionary expenditure or long-term wealth accumulation,” the report said.
Food and groceries were listed as the biggest expense for most people. This matches official data showing food inflation is the largest part of overall inflation, driven by supply chain problems, high transport costs, and insecurity in key farming regions.
Food inflation rose to 12.12 per cent year-on-year in February 2026, up from 8.89 per cent in January. For many families, this leaves little chance to save, invest, or spend on non-essentials.
Government vs reality
President Bola Tinubu has defended his economic reforms, saying they are starting to show results. Last year, during Nigeria’s 65th Independence Day address, he said, “The worst is over” as inflation eased and foreign exchange markets steadied.
Officials have pointed to higher investor confidence, more foreign inflows, and a unified exchange rate as proof of progress.
Central Bank of Nigeria governor Olayemi Cardoso said the foreign exchange market is now more liquid and efficient, letting businesses and investors operate with minimal direct intervention from the bank.
But the Piggyvest survey suggests these national improvements have yet to reach ordinary households. Most respondents said they budget and try to save, yet still feel financially insecure because income is unpredictable and living costs remain high.
Eroding disposable income
Social and cultural expectations also affect financial stability. More than half of income earners said they provide financial help to relatives outside their households.
This “black tax” acts as a safety net since social welfare is limited, but it also reduces the money people can save or invest, leaving emergency funds thin and long-term planning difficult.
Income shocks
The survey found younger Nigerians, especially Gen Z, are more vulnerable. Many rely on a single source of income, making them exposed to job loss, business problems, or other shocks.
This is critical in Nigeria, where many work in informal jobs without security. The report notes that diversifying income remains a struggle for young people entering the job market.
Since Nigeria’s economy depends heavily on consumer spending, weak household finances could slow overall economic recovery, even as inflation falls and markets stabilise.
Discipline amid hardship
Despite the challenges, many Nigerians are showing resilience. Respondents said they continue to save small amounts, stick to budgets, and invest in personal or business goals.
“Income remains concentrated in the lower bands, with a growing share of Nigerians reporting limited or no stable earnings. Savings capacity continues to decline, and emergency buffers remain thin. 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 said.
