Almost 60% of Nigerians earn below N100,000 or have no income

ABOUT 3 in 5 Nigerians either earn less than N100,000 monthly or have no income at all, according to the Piggyvest Savings Report 2025, highlighting the depth of income challenges across the country.

The findings reflect mounting financial pressure on households as the rising cost of living continues to outpace earnings, leaving many struggling to meet basic needs.

According to the report, nearly 60 percent of Nigerians fall within the lowest income brackets or remain without a steady income stream, reinforcing concerns about weak income distribution.

Despite signs of macroeconomic stabilisation, only 6 percent of Nigerians feel financially secure, suggesting a disconnect between policy outcomes and everyday realities.

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“On paper, the economy is stabilising… On the ground, however, the strain hasn’t let up,” the report noted, adding that Nigerians are adjusting, but within increasingly tight financial limits.

The report also revealed that nominal income gains have failed to translate into real purchasing power, as inflation continues to erode earnings.

Co-founder and COO of Piggyvest, Odun Eweniyi,explained that while incomes may have increased on paper, the value of money has weakened significantly. She noted that inflation, which climbed above 33 percent in 2024, has left many earning more but only able to afford less.

Role of age, gender in income distribution

The data further showed uneven income distribution, with younger Nigerians, particularly Gen Z, more likely to earn below N100,000 or remain unemployed, while higher earnings are concentrated among older individuals.

Gender disparities also persist, as women are more likely to fall into lower income categories.

The report highlighted that most Nigerians depend on a single income source, increasing vulnerability to financial shocks. Roughly two-thirds rely on just one stream of earnings, with many reporting growing pressure from unstable living costs.

Spending patterns show that food and groceries account for the largest share of expenses, followed by transportation, housing, and utilities.

It also found that more than half of income earners support extended family members, a practice often referred to as ‘black tax,’ which further strains disposable income.

Weakening savings culture

Savings culture appears to be weakening, with about half of Nigerians not saving at all, while only 40 percent have emergency funds set aside. Eweniyi noted that even those with the intention to save are being forced to redirect funds toward essential expenses, leaving little room for financial planning.

Among those who manage to save, the primary goal is building emergency funds, reflecting widespread uncertainty. On debt, the report showed that about 1 in 5 Nigerians currently owes money, with borrowing largely driven by necessity rather than lifestyle spending.

Treasury and investments lead at Piggyvest, Damilola Arogundade, said financial decisions are increasingly shaped by immediate needs due to low and inconsistent incomes, a trend he described as “rational short-termism.”

The report also found that most borrowers rely on informal sources such as friends and family, underscoring limited access to formal credit systems.

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Co-founder of Piggyvest, Mr Joshua Chibueze, explained that borrowing is often triggered by timing gaps between income and major expenses, forcing many Nigerians to seek financial help when urgent needs arise.

Despite these pressures, Nigerians continue to adapt through budgeting, side hustles, and informal support networks. However, financial satisfaction remains low, with more than half of respondents unsure if their income will cover monthly essentials.

The report concluded that improving financial resilience will require more than economic reforms, stressing the need for systems that support stability, savings, and long-term confidence.