April 19, 2024
Nigerian Gen Zs prefer to save their money rather than to invest: Report

According to the study, young Nigerians (Gen Z) spent only 0.002% of their transactions on investments, while a significant 14.73% went into savings. In contrast, Millennials (28 – 43) and Gen X (44 – 59) invested slightly more, at 0.003% and 0.004%, respectively, yet saved less than Gen Z, at 12.79% and 13.43%, respectively.

The study noted that young Gen Zers were more inclined to save in today’s climate due to ongoing inflation, soaring food and fuel costs, and other financial challenges their parents did not experience as young adults.

Speaking to Forbes Africa, Babs Ogundeyi, CEO and co-founder of Kuda, explained that Gen Zers’ reluctance to invest stems from the perceived risks, with many prioritising the certainty of savings over potential uncertainties.

According to him, Nigeria doesn’t have a strong investment culture; however, investment opportunities are still emerging for young adults, with significant potential for growth.

Ogundeyi expressed optimism about the evolving financial landscape saying, “The economic climate plays a pivotal role and positive phases will spark interest in investments due to the potential to make good returns.

“There is a growing trend in the private sector, where innovative businesses actively engage in financial education to tap into an underserved market. This shift is particularly evident in the investment community, which traditionally focused on the savvy investor. Now, more private companies are making strides to appeal to those with limited knowledge about investing,” he stated.

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