By David Akinmola
Mouting cost-of-living pressures are weakening Nigerians’ ability to save, with households increasingly deplting financial buffers amid stagnant incomes and persistent inflation, raising fresh concerns over economic resilience.
The report, released in March 2026 and based on responses from over 20,000 Nigerians across rural and urban areas in the six geopolitical Zones, highlights widening gaps in financial behavior, particularly in emergency preparedness and long-term planning.
Market analysts warn that the trend poses serious risks for millions of households already grappling with inflationary pressures, as more Nigerians focus on meeting immediate needs at the expense of future financial stability.
The findings show that a large proportion of households lack adequate financial buffers, marking them highly vulnerable to shocks such as medical emergencies, job losses, and business disruption events that could easily spiral into a full-blown financial crisis.
Industry experts say the challenges go beyond income constraints, pointing instead to weak financial planning structures and low adoption of disciplined savings mechanisms.
Against this backdrop, Mutual Benefits Assurance Plc has stressed the importance of structured financial planning in reversing the trend, noting that integrated savings and protection solutions can help households build resilience.
Commenting on the development at the weekend, the Managing Director/Chief Executive Officer of the company, Femi Asenuga, said Nigerians must begin to adopt a structured savings culture backed by protection to withstand economic shocks.
“Saving must move beyond intention to structure. When savings are tied to protection and long-term planning, individuals are better positioned to handle uncertainties such as job loss, health emergencies, or income disruption, “he said.
He noted that the company’s range of savings and investment products are designed to instill financial discipline while providing returns and insurance cover, thereby addressing both wealth creation and risk management needs.
Products such as the Individual Savings and Protection Plan (ISPP), Children Education Plan (CEP), and Mutual Investment Plan (MIP) help customers build disciplined savings, earn competitive returns through compounded interest, and benefit from life insurance coverage, providing an added layer of security. Similarly, the Personal Pension and Investment Plan (PPIP) provides financial support in the event of job loss, whether voluntary or involuntary, while also serving as a valuable tool to supplement retirement income. In the event of death, designated beneficiaries receive the entitled benefits.
“High inflation and weak purchasing power have significantly reduced the ability of Nigerians to save. However, beyond income challenges, there is a clear need for improved financial literacy and adoption of structured financial products that enforce discipline,” he said.
Asenuga added that without deliberate efforts to strengthen savings behavior, households would remain vulnerable, with implications for investment growth and overall economic stability.
Operators in the financial services sector maintain that structured financial products, which combine regular savings with investment growth and risk protection, offer a more sustainable pathway compared to informal or ad-hoc savings approaches still prevalent among many Nigerians.
The insurer argues that improving Nigeria’s savings culture will require a deliberate shift from reactive spending habits to proactive financial planning, supported by accessible and structured products.
With economic uncertainty persisting, stakeholders warn that failure to address the savings gap could weaken consumer resilience and limit long-term economic growth, as households remain exposed to shocks without adequate financial safeguards.
