Nigerians save for rent, ‘Japa’, and education amid rising debt

More than three in 10 Nigerians report being in debt, according to PiggyVest Savings Report 2023, and Nigerians are saving towards rent, japa, and education, the report reveals.

A new report from PiggyVest, the foremost digital savings and investment platform in West Africa, has provided a deep dive into Nigerians’ financial well-being and priorities.

The report’s release also coincides with the annual World Savings Day campaign, which originated in Italy and was created to emphasize the importance of saving money.

According to the report, emigration from Nigeria – colloquially known as japa – is the third most common goal among Nigerian income earners.

This follows a trend of Nigerians seeking to relocate in search of better economic opportunities and professional growth. Other savings goals in the top 3 are rent/housing and personal education.

The report explores various aspects of financial well-being, including income, saving and spending habits, emergency funds, unplanned gifts & expenses, debt and future financial plans. It is based on insights from a survey of over a thousand Nigerians of different ages, genders, and income brackets.

Another key finding from the report concerns black tax and debt. The report reveals that over four in five Nigerian income earners pay black tax, making it a significant expense category for many Nigerians. Also, more than 3 in 10 Nigerians report being in debt to family and friends, a loan app, a bank or other sources.

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The report isn’t entirely grim, however. From the findings, the culture of savings is still alive and well in Nigeria. 79 percent of Nigerians report having a savings habit, with 64 percent saving consistently and 15 percent saving occasionally.

Odun Eweniyi, Co-founder and Chief Operating Officer of PiggyVest, says the report goes beyond the statistics to recognize Nigerians’ aspirations, challenges, and potentials. “This report is a testament to PiggyVest’s commitment to financial empowerment and inclusivity. It shows us where we are, what we’ve done and what we’ve yet to do,” she said.

“At PiggyVest, we believe in equipping individuals with the tools and knowledge they need to secure their financial future, and this report underscores our dedication to that mission,” Eweniyi added.