Nearly six in every ten Nigerians either earn less than ₦100,000 a month or have no income at all, a new report by Piggyvest has revealed, underscoring the deepening strain on household finances amid rising living costs.
According to the Piggyvest Savings Report 2025, about 60 per cent of Nigerians fall within the lowest income bracket or are completely without income. The report paints a stark picture of economic reality, despite signs of macroeconomic stability.
Only six per cent of Nigerians, it added, feel financially secure, highlighting a widening gap between economic reforms on paper and the lived experiences of citizens.
“On paper, the economy is stabilising… On the ground, however, the strain hasn’t let up,” the report stated, noting that Nigerians continue to adjust to tough conditions but with shrinking financial flexibility.
While nominal incomes may have risen, the report stressed that purchasing power has weakened due to persistent inflation. Odun Eweniyi, Piggyvest’s Co-founder and COO, explained that rising earnings have not translated into improved living standards.
“The naira has lost significant value over the past two years. Inflation peaked above 33 per cent in 2024, so people are earning more but affording less,” she said.
The report also exposed sharp inequalities in income distribution. Younger Nigerians, particularly Gen Z, are more likely to earn below ₦100,000 or remain unemployed, while higher earnings are concentrated among older demographics. Gender disparities persist as well, with women more likely to fall into lower income categories.
Financial analyst Dsione Oseni-Elamah warned that continued wage inequality, especially against women, could have broader economic consequences, including underutilisation of talent and reduced productivity.
Another key finding shows that most Nigerians depend on a single source of income, increasing their vulnerability to financial shocks. About two-thirds of respondents rely on just one income stream, with many reporting intense pressure from rising prices and unstable living conditions.
Spending patterns reveal that food and groceries take up the largest share of income, followed by transportation, housing, and utilities. Additionally, more than half of income earners support extended family members, a financial burden often referred to as “black tax.”
Savings culture is also weakening. The report found that about half of Nigerians do not save at all, while only four in ten maintain emergency funds. Even those with saving discipline are increasingly forced to divert funds to basic needs.
“What we’re seeing is that even people who intend to save are redirecting those funds to essentials. These are not expenses you can cut,” Eweniyi noted.
Among those who save, the primary goal is building emergency funds, reflecting widespread uncertainty about the future.
On borrowing, the report found that only one in five Nigerians is currently in debt, but most loans are taken out of necessity rather than for consumption. Treasury and Investments Lead at Piggyvest, Damilola Arogundade, described this trend as “rational short-termism,” where immediate needs override long-term financial planning.
Due to limited access to formal credit, many Nigerians rely on informal borrowing from friends and family. Co-founder Joshua Chibueze explained that borrowing is often driven by mismatches between irregular income flows and urgent expenses.
“Income comes in small amounts over time, but major expenses like rent come all at once. People borrow because they simply cannot wait,” he said.
Despite these challenges, the report noted that Nigerians continue to show resilience through budgeting, side hustles, and informal support systems. However, financial satisfaction remains low, with more than half of respondents uncertain about meeting basic needs each month.
The report concluded that beyond income levels, true financial wellbeing depends on stability, predictability, and the ability to withstand economic shocks.
“Financial progress is not just about numbers, but about confidence,” it stated.
