A Financial expert, Ms Osasikemwen Ighile, on Thursday urged Nigerians to embrace structured savings plans, warning that inflation and rising living costs were eroding the value of idle cash and threatening long-term financial stability.
Ighile, who is the Brand Manager, FairMoney Microfinance Bank, said in a statement that saving money had become a strategic necessity rather than merely a prudent habit in Nigeria’s current economic environment.
Ighile said that inflationary pressures, currency fluctuations and increasing household expenses had made it imperative for individuals to adopt savings options that preserved and grew value over time.
Citing data from the National Bureau of Statistics (NBS), which showed that inflation rose from 22.41 per cent in May 2023 to a peak of 34.80 per cent in late 2024, she underscored the need for savers to seek interest-bearing financial products.
“Cash that is not generating returns is steadily losing purchasing power.
“The challenge is no longer whether people save, but how they save.
“While traditional savings methods such as ajo (group contributions) and esusu (thrift) has helped many Nigerians cultivate financial discipline, they offered limited protection against inflation and did not provide opportunities for wealth growth,’’ she said
According to her, money stored outside formal financial institutions earns no interest and misses the benefits of compounding, which plays a critical role in long-term wealth accumulation.
The FairMoney executive advised Nigerians to align savings with specific financial goals, including emergency funds, education, rent and business expansion, while leveraging savings products that offered returns.
She said that fixed savings and interest-bearing accounts could help preserve value, encourage financial discipline and reduce the temptation of impulsive spending.
According to her, saving with a clear purpose and automated contributions creates consistency, strengthens financial confidence and improves long-term stability.
Ighile said that the emergence of digital financial platforms had made structured savings more accessible through secure and transparent channels.
Sbe noted that FairMoney Microfinance Bank was a digital financial platform, adding that it operated under the supervision of the Central Bank of Nigeria and was insured by the Nigeria Deposit Insurance Corporation, subject to applicable regulatory conditions.
According to her, financial security is determined not only by income levels but also by how effectively available resources are managed and grown.
“Moving from merely keeping money to adopting a structured savings culture can be a key pillar of long-term financial planning, especially in uncertain economic times,” she said.
