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<p>A recently released Piggyvest Savings Report 2024 has revealed that 83% of respondents admitted they spend the biggest chunk of their monthly earnings on food and groceries.</p> 
<p>This reemphasises the known notion that food is the most significant budget item for most citizens. The cost of food in Nigeria <a href="https://tradingeconomics.com/nigeria/food-inflation" target="_blank" rel="noopener">increased by 37.77%</a> in September of 2024 over the same month in the previous year. This is largely owing to steady inflation and the myriad challenges bedevilling the agricultural sector. These include the rising cost of inputs, insecurity in the northern part of the country and outrageous transport costs.</p> 
<p>According to the report, transport cost comes in at a very distant second place with 43% of responders citing it as a major cost. In the past year, the removal of fuel subsidies has led to an unprecedented rise in petrol prices and transport fares. For example, an <a href="https://punchng.com/transportation-cost-increased-by-98-in-one-month-nbs/" target="_blank" rel="noopener">NBS report</a> indicates that the average cost of bus transportation within Nigerian cities rose from N649.59 in May 2023 to N1,285.41 in June 2023.</p> 
<p>It also shows that utility bills, which include essentials like electricity and airtime follow closely with 38%. Clothing, personal upkeep and childcare followed with 35% and 24% respectively.</p> 
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  <img loading="lazy" decoding="async" width="1704" height="880" src="https://technext24.com/wp-content/uploads/2024/11/Japa-savings-decline-as-Nigerians-spend-83-of-their-income-on-food-report-1.jpg" alt="Japa savings decline as Nigerians spend 83% of their income on food- report" class="wp-image-239065">
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   Source: Piggyvest Savings Report 2024
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<p>The report also indicated that over the past year, the personal savings pattern of Nigerians changed significantly. In 2023, Japa represented the savings goal of 21% of Nigerians and ranked 3rd on the list of immediate savings priorities. This year, it represents the savings goal of 10% of Nigerians and has fallen behind seven other goals such as personal education, car purchase and house rent.</p> 
<p>The survey also discovered that 6 out of 10 (64%) Nigerians do not have emergency funds that allow them to take care of emergencies without incurring debt.</p> 
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  <img loading="lazy" decoding="async" width="1646" height="652" src="https://technext24.com/wp-content/uploads/2024/11/Japa-savings-decline-as-Nigerians-spend-83-of-their-income-on-food-report-2.jpg" alt="Japa savings decline as Nigerians spend 83% of their income on food- report" class="wp-image-239066">
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   Source: Piggyvest Savings Report 2024
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<h4 id="about-the-2024-piggyvest-savings-report" class="wp-block-heading">About the 2024 Piggyvest Savings Report</h4> 
<p>Recall that last year, PiggyVest surveyed over a thousand Nigerians of various ages, genders, and income brackets about their saving and spending habits, debt management, and future financial plans. The findings were compiled into a&nbsp;<a href="https://www.piggyvest.com/reports/2023" target="_blank" rel="noreferrer noopener">report</a>&nbsp;and released on October 31, 2023, World Savings Day.</p> 
<p><strong><em>Read also: <a href="https://technext24.com/2024/02/20/piggyvest-ecosystem-leaders-roundtable/">PiggyVest hosts ecosystem leaders’ roundtable on the Nigerian financial landscape</a></em></strong></p> 
<p>The year’s report was also released to mark the World Savings Day celebrations. The fintech company dedicated it to reminding people to evaluate their spending, nurture savings, and work toward financial stability.</p> 
<p>With responses from over 10,000 Nigerians of different ages, genders, and income brackets, this year’s report revisits indices measured in the previous year by exploring various aspects of financial well-being.</p> 
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  <img loading="lazy" decoding="async" width="1628" height="1214" src="https://technext24.com/wp-content/uploads/2024/11/Japa-savings-decline-as-Nigerians-spend-83-of-their-income-on-food-report-4.jpg" alt="Japa savings decline as Nigerians spend 83% of their income on food- report" class="wp-image-239068">
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   Source: Piggyvest Savings Report 2024
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<p>These include income, saving and spending habits, emergency funds, debt and future financial plans. It also takes into note other aspects of the financial life of Nigerians such as inflation and business within the past year.</p> 
<p>Dr. Cosmas Maduka, CON, the Chairman and CEO of Coscharis Group said about the report that it provides valuable perspective into spending and saving patterns, helping readers understand their financial habits and identify areas where greater discipline is needed to foster a healthier financial lifestyle.</p> 
<p><em>“They are also crucial because they reveal shifting financial behaviours across generations. They help confirm whether these trends are consistent and explore the underlying factors and values driving these changes,”</em> he added.</p> 
<h4 id="other-key-findings" class="wp-block-heading">Other key findings</h4> 
<p>The report also shows that more than 3 in 10 Nigerians earn below ₦100,000 monthly, and more than 2 in 10 Nigerians have no source of income. This posits that nearly half of all Nigerians interviewed are unemployed or underemployed.</p> 
<p>Across genders, however, the survey reveals an interesting trend. Women edge ahead of men in the lower income categories (below ₦250,000). However, in higher income categories, men outnumber women. For instance,&nbsp;Men are about 1.4 times more likely than women to earn a monthly income of ₦1,000,000, and men are almost twice as likely to earn a monthly income of ₦5,000,000 and above.</p> 
<p>Another key finding from the report concerns inflation. In 2024, Nigeria has seen inflation reach record highs, surpassing&nbsp;<a href="https://economicconfidential.com/2024/07/nigeria-inflation-report/" target="_blank" rel="noopener">levels not observed since 1996</a>. Within the past year alone, the national inflation rate has gone from&nbsp;<a href="https://nairametrics.com/2023/09/15/nigerias-inflation-soars-to-25-80-in-august-nbs/" target="_blank" rel="noopener">2023’s 25.08%</a>&nbsp;to&nbsp;<a href="https://nigerianstat.gov.ng/elibrary/read/1241570" target="_blank" rel="noopener">32.70% in 2024</a>.</p> 
<p>It also notes that nearly 9 in 10 Nigerians say they have noticed an increase in their general expenses in the past year. This strain has affected not only individuals but also businesses, who have felt the brunt of inflation.</p> 
<p>The survey suggests that a little over 8 in 10 business owners have recorded increased operational costs in the past year, with the most affected items being raw materials, transportation, and utilities.</p> 
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  <img loading="lazy" decoding="async" width="1510" height="672" src="https://technext24.com/wp-content/uploads/2024/11/Japa-savings-decline-as-Nigerians-spend-83-of-their-income-on-food-report-3.jpg" alt="Japa savings decline as Nigerians spend 83% of their income on food- report" class="wp-image-239067">
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   Source: Piggyvest Savings Report 2024
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<p>Although many aspects of the report are concerning, there are also some encouraging findings. For instance, compared to last year, about 1 in 10 Nigerians have adopted new saving habits, including establishing&nbsp;an emergency savings fund.</p> 
<p>Click&nbsp;<a href="https://www.piggyvest.com/reports/2024" target="_blank" rel="noopener">here</a> to download the full report.</p> 
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<p>The post <a href="https://technext24.com/2024/11/06/japa-savings-decline-nigerians-food/">Japa savings decline as 83% of Nigerians spend largest income share on food- report</a> first appeared on <a href="https://technext24.com">Technext</a>.</p>

Japa savings decline as 83% of Nigerians spend largest income share on food- report

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