A new report by PiggyVest, released today, sheds light on the state of household finances in Nigeria for 2025, revealing a complex economic landscape amidst ongoing reforms. The report highlights that thirty per cent of Nigerians earned less than ₦100,000 monthly, establishing this as the country's largest income band. This finding offers a critical snapshot as Nigeria navigates significant economic adjustments.

The study also points to a persistent segment of economic inactivity, with 28% of Nigerians reporting no income. This figure marks a sharp increase from 20% in 2023 and has remained unchanged from 2024. While a substantial portion struggles with low or no income, there are discernible signs of modest growth at the upper end of the income spectrum. Approximately 42% of Nigerians now earn above ₦100,000 monthly, with a notable rise in those earning ₦1 million or more, climbing to 5% in 2025, which represents the strongest improvement across all income brackets.

Middle-income segments also show indications of recovery after some fluctuations. The share of Nigerians earning between ₦100,000 and ₦250,000, which fell from 25% in 2023 to 21% in 2024, has since rebounded to 24% in 2025. Similarly, the proportion of those earning between ₦250,000 and ₦499,999 dropped from 15% in 2023 to 8% in 2024 before climbing back to 10% this year. Despite these pockets of income growth, the overall sentiment regarding personal finances remains largely negative. Most respondents expressed dissatisfaction with their financial situation, primarily attributing this to rising inflation and a consequent decline in purchasing power over the past three years.

A significant vulnerability in the Nigerian financial structure is the continued reliance on a single source of income for the majority of households, leaving them highly exposed to economic shocks. The report further uncovers generational differences in income diversification: 40% of baby boomers report having multiple income streams, a figure that drops to 30% for millennials and a mere 26% for Gen Z respondents, indicating younger generations face greater challenges in diversifying their earnings.

Spending patterns remain consistent, with food continuing to be the dominant expense, accounting for the largest portion of household budgets for 72% of respondents. Other major expenditures, including clothing, household upkeep, utilities, and transportation, have all been significantly impacted by inflationary pressures, further straining household finances.

One of the more concerning trends highlighted is the steady decline in savings. In 2023, 64% of Nigerians reported saving monthly, but this figure drastically fell to 40% by 2025. Concurrently, the proportion of those who do not save has more than doubled, soaring from 21% to 53% over the same period. Among those unable to save, a substantial 57% cite insufficient income as the primary reason. For the segment that does manage to save, priorities are clearly shifting towards financial security, with emergency funds ranking as the most common savings goal, cited by 30% of respondents. This is followed by savings allocated for childcare expenses and plans to start a business, reflecting a dual focus on precautionary behavior and entrepreneurial ambition.

Regarding debt, the PiggyVest report suggests a relatively low penetration of formal borrowing. A vast majority, 82% of respondents, reported having no outstanding debt. Among those who do carry debt, borrowing remains largely informal, with friends and family being the most common sources of credit at 29%, followed by cooperatives at 22%. Loan sizes also tend to be small, dominated by microloans; 24% of borrowers took loans below ₦50,000, and another 24% borrowed between ₦50,000 and ₦99,999. This indicates both limited access to formal credit channels and a cautious approach to borrowing by Nigerians amidst prevailing economic uncertainties.