Afrigather New knowledge from financial savings firm Piggyvest confirms that Nigerians’ buying energy has considerably diminished up to now yr.
Nigerians are financially worse off than a yr in the past throughout a number of metrics like revenue, financial savings, spending, and emergency funds, as new knowledge from Piggyvest highlights the impression of inflation on Nigerian pockets.
Piggyvest’s report, which surveyed over 10,000 Nigerians, comes as Nigeria’s headline inflation slowed to 32.15% in August 2024, however effectively above 2023’s peak of 25.08%, largely because of financial reforms below President Tinubu.
This inflationary atmosphere has left sixty-five % of Nigerians with no revenue or lower than ₦100,000 ($61) month-to-month—a determine that rises to 86% for these incomes under ₦250,000 ($151) month-to-month.
The variety of Nigerians with a number of revenue sources additionally dropped by 10% in comparison with Piggyvest’s 2023 report. “It’s like peanuts today, incomes ₦100,000. I discover myself stocking cash to get issues for myself that I comfortably would if I did so a yr in the past or two years in the past,” a wage earner in Enugu, an Japanese Nigerian metropolis, instructed Piggyvest.
Given how little the typical Nigerian makes month-to-month, it’s unsurprising that 68% spend lower than ₦100,000 every month, highlighting restricted disposable revenue. When month-to-month expenditure rises to ₦500,000 ($303), solely 3% spend above that.
Whereas spending on meals has decreased from final yr, it stays the most important expense for many Nigerians. Transport prices have now surpassed utilities and payments, rating second after the removing of gasoline subsidies.
The variety of Nigerians that lower your expenses has fallen from 64% in 2023 to 57%, with 10% of these saving cash sometimes. “I used to avoid wasting, however the enhance in class charges, electrical energy tariffs, and even the price of gasoline has made it very troublesome to proceed,” a civil servant instructed Piggyvest.
Emigration, the third commonest saving aim on Piggyvest in 2023, has dropped to eighth place this yr as two forex devaluations have led the naira to lose almost 70% of its worth towards the greenback, considerably growing journey and relocation prices.
The variety of Nigerians with emergency financial savings fell by 5%, with over two-thirds reporting they haven’t any financial savings for unplanned bills with out incurring debt. Simply 15% of Nigerians elevated their financial savings over the previous yr, whereas 19% who had emergency financial savings now not do.
“We encourage all who have interaction with the information and insights from the Piggyvest Financial savings Report 2024 to make qualitative assessments of the shifts in client behaviour and attitudes round spending, saving, entrepreneurship and investing and reply accordingly,” Piggyvest stated in a press release.
You’ll be able to learn the report right here.
