The number of Nigerians earning over ₦500,000 per month has dropped dramatically, declining by 57% between 2023 and 2024, according to data from the PiggyVest Savings report.
In 2023, 14% of respondents disclosed earnings above ₦500,000, but this dropped to just 6% in 2024. This decline may reflect the relocation of high earners — identified as a top savings goal in the 2023 report — or job losses, as the number of respondents earning below ₦100,000 or reporting no income also increased.
Women are more likely to earn lower wages, with 59% of women earning below ₦250,000 compared to 49% of men. Interestingly, the number of Nigerians with one stream of income rose from 61% in 2023 to 71% in 2024.
Food and groceries account for the biggest personal expenses, followed by transport, bills, and utilities. Food inflation has been rising over the last year and now stands at 37.7%. This increase is reflected in the responses from respondents as food and transportation costs account for the biggest increases.
Fewer Nigerians are saving
A worrying data point in the report is the decline in savings, with 57% of Nigerians saving for the proverbial rainy day compared to 64% in 2023. The decline can be attributed to higher costs of living, which would naturally make individuals save less.
Building emergency funds, starting or growing a business, and upkeep for children are the top three savings goals in 2024. Emigration, aka japa which was a top three savings goal in 2023, drops to eight, with only 10% of respondents saving towards it.
Although emergency funds remain the top savings goal, 33% of Nigerians reported having no emergency savings between 2023 and 2024. When asked about the reasons, 72% cited inflation, while 32% attributed it to changes in income or economic status.
With access to credit remaining elusive for most Nigerians, 45% of respondents report borrowing money from friends and family. Banks and loan apps constitute 19% and 15%, respectively. However, 79% of Nigerians report not being in debt, likely reflecting the average Nigerian’s aversion to credit.
