Nigerians Borrow To Survive As Costs, Family Burdens Drain Income

…50% Of Nigerians Have No Savings, 94% Financially Insecure

…Limited Income Sources Leave Young Nigerians Financially Exposed

Nigeria’s ongoing economic reforms may be yielding signs of macroeconomic stabilisation, but the benefits have yet to reach most households, with only six per cent of Nigerians reporting that they feel financially secure, according to a report by Piggyvest.

The report, based on responses from more than 26,000 individuals across urban and rural areas, paints a stark picture of persistent financial strain, as rising living costs, weak income growth and limited savings continue to define the economic reality for millions.

Despite official indications of moderating inflation and policy adjustments aimed at stabilising the economy, the findings show that household-level pressures remain widespread.

More than half of Nigerians surveyed said they begin each month uncertain whether their income will be sufficient to cover basic expenses, underscoring the fragile nature of personal finances across the country.

A key concern highlighted in the report is the low level of savings. About one in two Nigerians said they do not save at all, while only four in 10 reported having any form of emergency fund.

This lack of financial buffers leaves a significant portion of the population vulnerable to economic shocks, including unexpected expenses or income disruptions.

The report found that roughly three in 10 Nigerian adults earn less than N100,000 per month, limiting their capacity to meet rising costs or engage in long-term financial planning. Spending is heavily concentrated on essential needs, particularly food, leaving little room for discretionary expenditure or investment.

Family obligations further compound the challenge. More than three in five income earners said they provide financial support to relatives outside their immediate households, reducing disposable income and weakening their ability to save.

The burden is especially pronounced among middle children, who, according to the report, often shoulder a disproportionate share of extended family responsibilities.

The findings also introduce a broader measure of financial satisfaction, capturing how Nigerians perceive their financial wellbeing beyond income levels.

Even among those who actively budget and attempt to save, confidence remains low, pointing to a disconnect between financial effort and tangible outcomes.

“On paper, the economy is stabilising. On the ground, however, the strain hasn’t let up,” the report noted, highlighting the widening gap between macroeconomic indicators and everyday experience.

Where borrowing occurs, it is largely driven by necessity rather than discretionary consumption. Many respondents reported taking on debt to meet essential needs such as business expenses, healthcare emergencies or basic living costs.

The report also draws attention to generational vulnerabilities. Younger Nigerians, particularly those in Generation Z, are more likely to depend on a single source of income, increasing their exposure to financial shocks and limiting their resilience in uncertain economic conditions.

Nonetheless, the study points to a degree of resilience among Nigerians. Many respondents indicated that they continue to save modest amounts, invest in small businesses and support family members despite tightening financial conditions.

Piggyvest’s co-founder and Chief Marketing Officer, Joshua Chibueze, said the findings reflect a population navigating economic challenges with determination.

“The resilience reflected in this report speaks to a population determined to build stability even in uncertainty,” he said.

Analysts say the report reinforces a broader trend across emerging markets, where improvements in macroeconomic indicators have yet to translate into meaningful gains in household welfare. In Nigeria’s case, they note that sustained income growth, alongside stronger social safety nets, will be critical to bridging the gap.

For policymakers and financial institutions, the findings underscore the need to look beyond headline economic gains and prioritise measures that directly improve household financial stability. These include expanding access to savings tools, improving income opportunities and creating more predictable economic conditions for citizens.

Ultimately, the report concludes that while Nigeria’s economic recovery may be visible in macroeconomic data, it remains uneven in its impact, leaving the majority of households still grappling with financial insecurity.