Delving into the financial goals of Nigerians unveils a dynamic spectrum of savings aspirations, with distinct priorities resonating across different age brackets. The recent survey orchestrated by Piggy Vest, a fintech player in the savings and investment arena, offers illuminating perspectives into the prevailing financial objectives of the populace.
The PiggyVest Savings Report 2023, based on a survey conducted between April and May this year, gathered insights from thousands of Nigerians spanning different ages, genders, and income levels. The report included answers from participants about their saving and spending behaviours, as well as their perspectives on debt, unexpected expenses, and future financial goals.
The report highlights that over 3 in 10 Nigerians are in debt. Notably, the top savings priorities for many include rent, ‘japa’ (referring to emigration for better opportunities), and education, as revealed in the PiggyVest findings.
Further insights from the report showed that “Japa”, or emigration from Nigeria, is the third most common goal among income earners in the country. This aligns with a growing trend of Nigerians seeking to relocate for improved economic prospects and professional advancement. The other top savings goals on the list are rent/housing and personal education.
1. Relocation plans (“Japa”)
According to the survey, the resounding financial crescendo for Generation Z is the pursuit of a global odyssey, often referred to as “Japa.” Astonishingly, over 50% of Gen Z identifies this as their premier financial goal. The data paints a vivid picture of a substantial portion of the younger demographic harbouring aspirations to chart new territories beyond Nigeria’s borders, fueled by the quest for enhanced economic opportunities and professional growth.
2. Housing and Rent Expenses
Unveiling the nuanced layers of financial goals, housing and rent expenses emerge as a dominant focus, claiming 30% of responses. This priority underscores the unwavering commitment to securing a stable and comfortable living space. The survey reflects a collective drive among Nigerians to achieve homeownership or ensure consistent access to suitable accommodation.
3. Personal Education
The pursuit of knowledge and personal development holds a significant place in the savings goals of Nigerians, with 24% of respondents allocating their financial resources towards personal education. This reflects a commitment to self-improvement and the recognition of education as a key driver for individual growth and advancement.
4. Vacation
While not the foremost priority, the pursuit of leisure and travel features prominently in the savings objectives of Nigerians. Approximately 20% of respondents allocate their funds towards vacations, reflecting a desire for periodic breaks and the exploration of new experiences. This highlights the importance placed on leisure and recreation in the overall financial planning of individuals across different age groups.
Another key finding from the report concerns black taxes and debt. Over 4 in 5 Nigerian income earners pay black tax, the report reveals, 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.
