As inflation continues to bite hard into the fabric of Nigeria’s economy, eroding the value of money and shrinking consumer purchasing power, millions of citizens are waking up to a harsh reality: traditional savings accounts are no longer enough to preserve wealth. With inflation rates hovering above 23.7% as of April 2025, the value of naira-denominated savings is depreciating faster than ever before. In response, experts say Nigerians must adopt smarter, inflation-proof financial strategies to secure their hard-earned money and protect their future.
This exclusive report outlines actionable, practical solutions for individuals and families seeking to beat inflation and grow their wealth despite the turbulent economic climate.
Inflation is the silent killer of savings. It refers to the general increase in the prices of goods and services over time, and when it outpaces the interest earned on savings accounts, savers experience what is known as a negative real return. For instance, if your savings account yields 5% interest annually, but inflation is running at 23.7%, your actual purchasing power drops by nearly 18%.
“Most Nigerians do not realize that keeping their money in a traditional bank account is actually costing them money,” said Mary Eze, a Lagos-based financial analyst. “It gives the illusion of security, but the naira’s value is falling daily due to inflation and currency instability.”
The inflationary drivers—ranging from petrol subsidy removal, exchange rate volatility, food supply chain disruptions, to insecurity—are deeply entrenched in Nigeria’s economic structure, and their effects are being felt everywhere, from markets to schools.
Strategy 1: Compare and Choose High-Yield Savings Options
All savings accounts are not created equal. While traditional bank savings accounts offer between 2% and 5% annually, some digital banks and microfinance institutions provide more competitive rates.
Platforms like FairMoney, Carbon, and VBank offer high-yield savings plans with interest rates between 10% and 15%, depending on the savings duration and product terms. These accounts often require locking in funds for a fixed period, but they significantly reduce the inflationary erosion of your savings.
However, savers are advised to ensure that such platforms are regulated by the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) before committing funds.
Strategy 2: Invest in Treasury Bills and Government Bonds
Treasury Bills (T-bills) and Federal Government Bonds are low-risk financial instruments that provide returns higher than most bank savings accounts.
Treasury Bills are short-term investments sold at a discount and repaid at face value upon maturity. A 364-day T-bill with a 13% yield would turn an investment of ₦870,000 into ₦1,000,000 after one year.
On the other hand, government bonds are long-term instruments offering bi-annual interest payments, known as coupons. They typically deliver higher returns than T-bills and are considered secure due to government backing. Bonds can also be traded before maturity on the secondary market, offering flexibility to investors.
According to investment advisors, bonds and T-bills are suitable for conservative investors who prioritize capital preservation while earning reasonable returns.
Strategy 3: Diversify into Inflation-Resistant Assets
For those with medium- to long-term investment goals, real assets can serve as a buffer against inflation.
Real Estate: Land and property appreciate over time, particularly in urban and semi-urban areas. Rental income also offers steady cash flow that can hedge against rising living costs.
Equities: Certain stocks listed on the Nigerian Exchange (NGX)—especially in the agriculture, banking, and consumer goods sectors—have historically outpaced inflation due to pricing power and market demand.
Commodities: Though not mainstream in Nigeria, gold remains a globally recognized store of value. Some fintech platforms now provide access to gold-backed investment options.
Diversifying your portfolio reduces reliance on naira-only instruments and spreads risk across asset classes that perform well during inflation.
Strategy 4: Explore Digital Investment and Dollar-Based Savings
With the rise of fintech in Nigeria, platforms like PiggyVest, Cowrywise, Bamboo, and Rise offer tailored financial tools to help Nigerians save and invest smarter. Some allow users to:
Save in USD or other stable foreign currencies.
Invest in U.S. stock markets.
Buy into mutual funds, fixed-income securities, and dollar-denominated real estate funds.
For instance, saving $100 monthly on a platform like Rise not only protects against naira depreciation but also allows savers to earn returns in stronger, more stable currencies.
“Digital savings apps have democratised wealth-building. Even with as little as ₦5,000, you can begin building a diversified investment portfolio,” said Tochukwu Nnaji, a tech-savvy investor.
Strategy 5: Adjust Financial Goals and Track Performance
Setting clear short- and long-term financial goals ensures you choose the right savings tools and investment vehicles. Whether it’s building an emergency fund, planning a child’s education, or buying property, your financial decisions should align with these goals.
Regularly review your portfolio’s performance and adjust your savings rate as needed. Financial planning apps like Expensure and Money Africa can help Nigerians track income, expenses, and investment returns for better budgeting.
Strategy 6: Prioritise Financial Literacy
Financial literacy is the foundation of smart money management. Sadly, a large percentage of Nigerians lack adequate knowledge of savings products, investment tools, and budgeting strategies.
Stakeholders—including banks, fintechs, and government bodies—must invest in public financial education through community workshops, radio and television outreach, school integration, and online courses.
“Empowering people with knowledge on inflation, compounding interest, and investing could transform Nigeria’s economic outlook from the ground up,” said Chidinma Ugo, a financial educator.
While the CBN continues its tight monetary policy to tame inflation, more is needed to protect savers:
Mandate real interest rate disclosure: Banks should transparently display interest rates adjusted for inflation.
Promote inflation-indexed savings bonds: These bonds adjust interest in line with inflation, safeguarding the purchasing power of savers.
Offer incentives to financial institutions: Encourage development of savings products that beat inflation through innovation grants or tax breaks.
Enhance transparency: Banks must disclose hidden fees, such as ledger and withdrawal charges, which quietly erode account balances.
The Securities and Exchange Commission (SEC) and the National Pension Commission (PenCom) should also collaborate with fintechs to broaden access to safe, high-yield retirement products.
Inflation is a reality Nigerians must live with in the foreseeable future. But with proactive planning and smarter financial choices, individuals can outpace its erosive effects.
Whether it’s opting for high-yield digital accounts, investing in government securities, or diversifying into real estate and equities, the path to financial resilience is open to all.
In today’s economy, it’s not enough to save. You must save with strategy. Because every naira saved wisely is a naira protected—and potentially multiplied.