Nigeria’s middle class faces silent wealth collapse amid inflation – MD, Blackcod Asset Management

Nigeria’s middle class is facing a silent collapse in wealth as rising inflation, currency depreciation, and weak investment culture continue to wipe out savings and weaken financial stability across households, financial experts have warned.

Ebunoluwa Dayo-Adepoju, the managing director of Blackcod Asset Management, said many Nigerians are earning income but are failing to build lasting wealth because inflation is eroding the value of their money faster than salaries can grow.

According to Dayo-Adepoju, the country’s economic discussion has focused too much on wages while ignoring the deeper problem of wealth creation and asset ownership.

“People are earning more than they did years ago, but inflation is the silent killer. It eats into savings and destroys purchasing power,” Dayo-Adepoju disclosed at AriseTV.

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The warning comes as millions of Nigerians struggle with rising living costs despite salary increases in some sectors. The prices of food, transportation, school fees, rent, and healthcare have continued to rise sharply, putting pressure on middle-income earners who once enjoyed some level of financial comfort.

Experts say the naira’s sharp decline since 2023 has worsened the situation, especially for Nigerians who kept their money in cash savings rather than investments.

While individuals with assets such as real estate, equities, and fixed-income investments have managed to preserve some value, many salary earners, depending solely on monthly income, have seen their purchasing power collapse.

Dayo-Adepoju explained that income alone cannot create financial security without a deliberate plan to convert earnings into assets that can grow over time.

“It is not just about saving money. You must invest in assets that generate returns and create compounding growth,” she said.

She noted that many Nigerians still lack proper financial education and long-term investment planning, making them vulnerable during periods of economic instability.

According to her, wealth building requires discipline, consistency, and delayed gratification, even when income levels are modest.

“A lot of people say they do not have enough money, which is understandable. But even small, consistent investments over time can make a difference,” she explained.

The financial expert also criticised the country’s weak wealth-building structure, saying successive governments have paid more attention to wage support than policies that encourage asset ownership and long-term financial security.

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She pointed to the absence of strong financial literacy programmes, poor pension coverage for informal workers, and limited investment awareness as major reasons many Nigerians remain financially exposed.

Nigeria’s informal sector accounts for a large share of employment, yet millions of workers lack access to structured savings plans, pensions, or investment guidance.

Dayo-Adepoju said firms in the financial sector are now using social media and digital platforms to simplify investment education and help more Nigerians understand wealth management.

She warned that unless Nigerians begin to prioritise asset building over consumption, the middle class may continue shrinking under inflationary pressure.

Analysts say the growing wealth erosion among middle-income earners could have long-term economic consequences, including reduced consumer spending, lower household stability, and increased poverty levels.

For many Nigerians, the challenge is no longer just earning an income, but finding ways to preserve value in an economy where inflation continues to outpace wages.