A two months savings survey report by Piggyvest, noted that Nigerians spend 87% on personal effects, which includes food, groceries, 58% of the respondents are saving to start their own businesses in the next five, while 49% of respondents were saving up for relocation to a new country.
A whooping 87% disclosed they spend most of their income on utility bills, food, and groceries. This was follow closely by the recent urge for immigration, popularly referred as ‘Japa’.
While the of lack of investment in small businesses , and particularly in countries like Nigeria, signal a collapse in the economy. It is worth noting that Nigeria 27% of the country’s trade balance comes from small businesses, but more importantly they employ 60 million Nigerians and contribute 48% of the GDP. Without small businesses, the unemployment rates would soar from 14% to as much as 50%, causing nothing but chaos.
Therefore, in what seems like promising prospect to the Nigeria Economy, the report noted that 58% of the respondents are saving to start their own businesses in the next five years. Interestingly, unlike other saving plans like relocating or retirement funds, this one is ubiquitous to every age group. Small and medium businesses are the backbone of Nigeria’s economy as they contribute almost half to the country’s GDP. With about about 40millon SMEs owned by 67% young people above the age of 40.
Similarly, though riled with a missed feelings, 49%, respondents is to leave the country, 49% of respondents said it was saving up to relocate to a new country, of the 49%, 57% were Gen-Z (below 26). Nigeria has witnessed a mass exodus of young people in the past three years, and that doesn’t seem to be stopping soon. The pro of the above is that the energetic youth leaving the country may deprived the country of her labour force, but the diaspora remittance in foreign currencies as also serve as a boost to nigeria’s economy.
The report, also fingered the cooling effects of the loan app across Nigeria economy landscape. With the inflation rocking the Nigeria’s economy in the last eight years, lending apps are the second most common destination for loans in Nigeria. Nigerians have had no options than resorting to feeding on loans.
