The number of Nigerians saving for emigration purposes has reduced to 10 percent from 21 percent in the last year, according to a report by PiggyVest.
The PiggyVest Savings report revealed that emigration (japa) ranked third on Nigerians’ immediate saving priorities last year. However, it has now fallen behind seven other goals, such as personal education, buying a car, and rent/housing.
Nigerians who want to relocate abroad in search of better economic opportunities and professional growth are facing higher costs of achieving their goals, as soaring inflation has exacerbated the country’s cost-of-living crisis.
Read also: JAPA Chronicles offers guide for individuals considering relocation
Inflation in Nigeria has risen to 32.7 percent, and the economic devaluation towards the end of 2023 significantly impacted the economy.
“I have been saving for my postgraduate studies for over a year, and my savings are still not enough. Most of the friends that we started together have given up and just applied for better jobs here in Nigeria,” Olamide Sotayo, an HR consultant, told BusinessDay.
PiggyVest further revealed that emergency funds are the most common goal, representing one of the immediate savings goals of almost three in ten Nigerians. Wedding expenses are the least saved-for expense, with only four percent of Nigerians saving for them.
It added that only 47 percent of Nigerians save monthly, 10 percent save occasionally, and 43 percent do not save at all. This represents a decline from the 64 percent who had savings habits in 2023.
“The high cost of living makes it increasingly difficult for the average Nigerian to allocate funds for savings after covering essential expenses,” Odun Eweniyi, co-founder of PiggyVest, said.
“Financial insecurity brought on by job instability and increasing household expenses could also be discouraging regular savings,” she added.
Read also: 7 sure ways to “japa” from Nigeria
BusinessDay had earlier reported that one in three Nigerians earns N100,000 monthly, with the number of Nigerians earning N500,000 dropping to six percent from 14 percent in 2023.
The fintech added that there has been a notable increase in individuals reporting no income or earnings below N100,000. At the same time, there has been a marked decline in those within higher income categories. This aligns with the recent World Bank report, which shows that between 2023 and 2024, 14 million more Nigerians slipped into poverty in 2024.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
