A growing number of Nigerians are struggling to build sustainable savings habits, raising concerns over financial security and the role of insurance-backed savings products in bridging the gap.
This is according to insights from the PiggyVest Savings Report 2025, which revealed a declining savings culture among Nigerians, with many unable to maintain consistent savings or prepare for emergencies.
The report, released in March 2026, sampled over 20,000 respondents across rural and urban areas in the six geopolitical zones, highlighting major gaps in emergency preparedness and long-term financial planning.
Findings showed that a significant proportion of Nigerians either do not prioritise savings or lack the discipline to sustain it, leaving households vulnerable to financial shocks.
With rising living costs and economic pressures, many individuals are increasingly focused on meeting immediate needs at the expense of future financial stability, resulting in weak or non-existent emergency funds.
Analysts warn that the trend poses risks not only to individual financial well-being but also to broader economic resilience, as unexpected events such as medical emergencies, job loss, or business disruptions could easily escalate into crises.
Financial experts noted that the challenge extends beyond income levels, stressing the need for structured and disciplined financial planning mechanisms.
They explained that unlike informal savings approaches, structured financial products offer a combination of consistency, capital growth, and protection, enabling individuals to better manage uncertainties.
An underwriting firm, Mutual Benefits Assurance Plc, said its suite of savings and investment products is designed to address these challenges by promoting financial discipline and providing protection.
The company said products such as the Individual Savings and Protection Plan, Children Education Plan, and Mutual Investment Plan enable customers to build savings through a structured approach, while earning returns via compounded interest and enjoying life insurance cover.
It added that its Personal Pension and Investment Plan also provides financial support in the event of job loss, while serving as a supplementary retirement income solution. In the event of death, beneficiaries receive the policy benefits.
According to the firm, combining savings with insurance protection helps address two major issues identified in the report—lack of emergency funds and low financial confidence.
Industry stakeholders noted that structured savings plans not only encourage consistency but also provide assurance that funds will be available when needed, unlike informal methods which are often unreliable.
They added that the adoption of insurance-backed financial solutions could help shift Nigerians from reactive financial habits to more proactive financial planning.
As economic uncertainties persist, experts emphasised the need to deepen financial inclusion through accessible and structured savings products.
Mutual Benefits reiterated its commitment to promoting financial security and resilience, noting that simplifying savings and integrating protection would help individuals and businesses build a more stable financial future.