Afrigather Piggyvest surveyed 1,000 Nigerians to study their cash habits together with issues like earnings, financial savings, spending, and debt.
Fintech firm, Piggyvest has launched a savings report for 2023. Throughout two months, the corporate surveyed a few thousand Nigerians from totally different backgrounds, age teams, and genders to study their cash habits.
Since its launch in 2016, Piggyvest has been the preferred financial savings and funding app in West Africa. The corporate now has 4.5 million users and has paid out over ₦1.1 trillion ($1.42 billion) to customers. The report covers varied elements of private finance like borrowing, saving, and spending habits amongst others. In response to the corporate’s CMO, Joshua Chibueze, that is the primary of what’s anticipated to be an annual custom.
Listed here are the 5 attention-grabbing issues we discovered from the report:
1. Meals is the most important private expense for many Nigerians.
Respondents had been requested to share their largest private expense and 87% of all respondents disclosed that they spend most of their earnings on meals and groceries. That is adopted carefully by utility payments which was the second largest expense. Inside the previous 12 months, poor authorities insurance policies have despatched meals inflation in Nigeria rocketing to 26.7%, a 7.34% enhance from the earlier 12 months’s 19.34%.
2. Black tax stays a problem for almost all of earnings earners.
In response to the report, 56% of earnings earners pay black tax each month, in comparison with the 27% who solely pay often. To supply extra perspective, 71% of respondents earn about ₦249,000, with solely 29% incomes above ₦250,000. In response to one among Piggyvest’s respondents, 70% of her earnings have been despatched house to her mother since she began working.
“My black tax stored growing as my wage elevated,” she shared.
3. “Japa” is the third commonest financial savings objective on Piggyvest
Nigeria has witnessed a mass exodus of younger individuals within the past three years, and that doesn’t appear to be stopping quickly. After lease and training, the third commonest purpose for saving in line with respondents is to depart the nation. When requested about their main plans, 49% of respondents mentioned it was to relocate to a brand new nation. Of the 49%, 57% had been Gen-Z (under 26) whereas 49% had been millennials.
4. Majority of the inhabitants desires to determine companies
58% of the respondents are saving to begin their very own companies within the subsequent 5 years. Apparently, in contrast to different saving plans like relocating or retirement funds, this one is ubiquitous to each age group. Small and medium companies are the spine of Nigeria’s financial system as they contribute virtually half to the nation’s GDP. There are about 40 million SMEs within the nation to date, with 67% of them owned by younger individuals above the age of 40.
5. Lending apps are the second commonest vacation spot for loans
With the high inflation rate that has rocked the Nigerian financial system within the final eight years, it’s not stunning {that a} good variety of Nigerians should borrow to enrich their livelihoods. In response to the report, one in three individuals is at present in debt, with Era X and millennials being the almost definitely to be in debt. Whereas 43% owe their members of the family or associates, 26% are in debt to a loan app, which is greater than the 24% who owe a financial institution.
Whereas there have been issues raised concerning the ethics of loan apps in Nigeria, they continue to be one of the accessible technique of credit score within the nation.
To learn the complete report, click on here.
