By : Tijani Salako.

More than half of Nigerians are unable to save, as households channel a significant portion of their income into food and groceries, according to a new report by Piggyvest.

The report revealed that Nigerians spend an average of 72 per cent of their monthly earnings on food, underscoring the deepening cost-of-living crisis in Africa’s most populous nation.

Despite a nominal rise in income among respondents, the study found that financial pressure remains widespread. It noted that 53 per cent of Nigerians do not save, extending a three-year decline in the savings culture.

Based on responses from over 26,000 individuals, the report highlights the growing strain on household finances amid persistent inflation driven by currency reforms and fuel subsidy removal. Food prices, in particular, have continued to outpace overall inflation, forcing many households to prioritise basic consumption over savings and investments.

The erosion of savings, the report warned, weakens household resilience, reduces participation in capital markets and limits the availability of long-term domestic funds for lending and investment.

Commenting on the findings, Co-founder and Chief Operating Officer of Piggyvest, Odun Eweniyi, said declining savings could have far-reaching economic consequences.

“When savings decline broadly, households become more fragile, the economy loses a critical source of domestic capital, and inequality widens not just between rich and poor, but even within the same income brackets,” she said.

The report further showed that three in 10 Nigerian adults earn less than N100,000 monthly, with more than half uncertain about meeting basic expenses each month.

Only five per cent of respondents reported earning N1 million or more, an improvement from two per cent recorded in 2024, suggesting marginal income growth at the top end.

However, the report noted that rising incomes have not translated into improved welfare. “Although nominal incomes rose in 2025, many Nigerians still reported feeling financially strained, as income growth has not kept pace with the actual cost of living,” it stated.

Across age groups, Gen Z respondents typically aged between 14 and 29 were the most likely to report having little or no income, reflecting their early entry into the labour market, ongoing education, or unstable employment conditions.

Millennials showed a more even distribution across income levels, while Gen X and Baby Boomers were more likely to fall within higher income brackets.

The report also found that three in five Nigerians spend less than N100,000 monthly, excluding emergency expenses, further reflecting constrained household budgets.