Most Nigerians remain under severe financial strain despite a steady decline in inflation and signs of macroeconomic stabilisation, according to a nationwide savings survey released on Wednesday.

The 2025 Piggyvest Savings Report based on responses from more than 26,000 people across the country’s six geopolitical zones, found that over 50% of Nigerians begin each month unsure whether their income will cover basic expenses, while only six per cent say they feel financially secure.

The findings show the gap between improving headline economic indicators and the lived reality of households over two years after sweeping reforms, including fuel subsidy removal and exchange-rate liberalisation.

Nigeria’s headline inflation slowed to 15.06 per cent in February 2026, continuing a year-long downward trend following monetary tightening and improved foreign-exchange stability.

Despite the moderation, prices remain significantly higher than before the reforms, limiting any immediate relief for consumers.

Low savings and thin financial buffers

The report found that 1 in 2 Nigerians do not save at all, showing the pressure on disposable incomes. 

Only 4 in 10 respondents said they had emergency funds to fall back on in case of unexpected expenses such as medical bills or job loss.

Income levels also remain low for a large share of the population. 

Three in ten adults reported earning below N100,000 per month, highlighting the narrow income base from which many households are expected to manage rising living costs.

“For many households, spending is dominated by essentials, leaving little room for discretionary expenditure or long-term wealth accumulation,” it said.

Food and groceries were identified as the largest personal expense category for most respondents. 

This corresponds with official data showing that food inflation continues to account for the largest share of Nigeria’s overall inflation, driven mostly by supply chain disruptions, high transportation costs, and insecurity in key food-producing regions.

As of February 2026, food inflation rate rose to 12.12 per cent year-on-year in February 2026, reversing the single-digit level recorded in January- 8.89 per cent.

For many households, this leaves little room for savings, investment, or discretionary spending.

Government vs reality

President Bola Tinubu has repeatedly defended his administration’s economic reforms, arguing that they are beginning to yield results. 

Last year, during Nigeria’s 65th Independence Day address, he said, “The worst is over” as inflation began to ease and foreign exchange markets showed signs of stability.

Government officials have also pointed to improved investor confidence, increased foreign inflows, and a more unified exchange rate as evidence of progress.

The Central Bank of Nigeria governor, Olayemi Cardoso, repeatedly said the foreign exchange market has become more liquid and efficient, allowing businesses and investors to carry out transactions with minimal direct intervention from the bank.

However, the Piggyvest survey suggests that these macroeconomic improvements have yet to translate into financial confidence at the household level.

Most respondents said they actively budget and attempt to save, but still feel financially insecure due to unpredictable income and persistent cost pressures.

Eroding disposable income

The report shows the role of social and cultural factors in shaping financial outcomes.

More than half of income-earning respondents said they provide financial support to relatives outside their immediate households. 

This informal support system, often referred to as “black tax,” remains a critical safety net in the absence of widespread social welfare programmes.

However, it also reduces the amount of income available for personal savings and long-term financial planning, contributing to low emergency fund coverage and limited investment capacity.

Income shocks

The survey found that younger Nigerians, particularly those in Generation Z, are more financially vulnerable.

Many respondents in this age group rely on a single source of income, making them more exposed to job loss, business disruptions, or economic shocks. 

This is particularly significant in Nigeria, where a large portion of the workforce is engaged in informal employment with limited job security.

The report suggests that diversifying income sources remains a challenge for many young people entering the labour market.

Nigeria’s economy relies heavily on consumer spending, contributing largely to the GDP.

Persistently weak household finances may likely slow the pace at which broader economic recovery gains traction, even as inflation eases and financial markets stabilise.

Discipline

Despite the difficult conditions, the survey points to signs of resilience among Nigerians.

Many respondents reported continuing to save in small amounts, maintain budgets, and invest in personal or business goals, even as financial pressures persist.

“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.

Piggyvest, launched in 2016 as a digital savings platform and now serves millions of users, said the report aims to provide a data-driven picture of how economic conditions shape everyday financial behaviour.

The company said that while income levels are important, financial stability also depends on consistency, discipline, and the ability to manage shocks.