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By Chinenye Anuforo
Financial experts have called on Nigerians to embrace structured savings practices as a critical strategy for achieving long-term financial stability amid persistent inflationary pressures, rising living costs and economic uncertainties.
According to analysts, saving money has become more than a prudent financial habit. In today’s economic climate, it is increasingly viewed as an essential tool for preserving wealth and building financial resilience.
Data from the National Bureau of Statistics (NBS) showed that Nigeria’s inflation rate rose from 22.41 per cent in May 2023 to a peak of 34.80 per cent in late 2024 before easing in early 2025. Experts noted that the trend highlights the growing challenge faced by individuals who keep money in non-interest-bearing accounts, as inflation continues to erode purchasing power.
They explained that while many Nigerians maintain the discipline of setting money aside regularly, the real value of savings depends on how such funds are managed. Money kept idle may offer easy access, but often fails to preserve value over time.
Traditional saving methods such as keeping cash at home and participating in contribution schemes like ajo and esusu have long served as important financial tools for many households. However, financial experts argue that these methods have limitations in a modern economy.
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According to them, physical cash steadily loses value as inflation rises, while readily accessible funds may encourage impulsive spending. In addition, informal contribution schemes typically do not generate returns, limiting opportunities for wealth accumulation.
Experts therefore recommend that individuals align their savings with clearly defined financial goals. They maintain that emergency funds remain a cornerstone of financial security but should ideally be placed in flexible savings products that offer returns while maintaining accessibility.
For funds not required immediately, fixed savings and fixed deposit products are often recommended as effective options for generating returns and encouraging financial discipline.
They further stressed the importance of goal-oriented saving, noting that individuals who save towards specific objectives such as housing, education, business expansion or major purchases are more likely to remain committed to their financial plans.
Financial advisers also pointed out that the difference between merely saving money and growing savings becomes more evident over time. While funds placed in interest-bearing accounts benefit from compounding returns, idle cash gradually loses value as prices increase.
The growth of digital financial services has also expanded access to structured savings solutions. Technology-driven financial institutions now offer platforms that enable customers to save, monitor and manage their funds more conveniently.
Among such institutions is FairMoney Microfinance Bank, which provides savings products designed to encourage disciplined financial management. The bank operates under the regulatory oversight of the Central Bank of Nigeria (CBN), while customer deposits are insured by the Nigeria Deposit Insurance Corporation (NDIC), subject to applicable regulatory conditions.
Industry stakeholders maintain that financial security is determined not only by how much individuals earn but also by how effectively they manage and grow their resources.
They argued that adopting a structured savings culture, supported by discipline, clear objectives and appropriate financial products, can help Nigerians strengthen their financial position and achieve greater long-term stability despite prevailing economic challenges.
