Study Finds Nigeria’s Gen Z More Inclined To Saving Than Investing

Published 1 month ago
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In a recent study conducted by Kuda, a Nigerian fintech, it was revealed that Generation Z in Nigeria exhibit a unique financial behavior compared to older demographics, preferring saving over investing.

Analyzing a sample size of 774,532,224 transactions from 2023, Kuda found that while Gen Z spent only 0.002% of their transactions on investments, a significant 14.73% went into savings. In contrast, Millennials and Gen X allocated slightly more towards investments at 0.003% and 0.004%, respectively, yet saved less than Gen Z at 12.79% and 13.43% respectively.

The report revealed that Nigerians aged 43 to 59 invested more while ages 18 and 26 invested less but saved more.


This inclination towards saving among Gen Z carries significant implications, especially in Nigeria’s economic context. With the Naira’s value fluctuating against the dollar, the decision to prioritize saving over investing reflects a broader socioeconomic and cultural landscape.

Babs Ogundeyi, CEO and co-founder of Kuda, shedding light on the factors influencing Gen Z’s financial behavior, explains to FORBES AFRICA: “The preference for saving over investing among this demographic can be attributed to a few things. Firstly, Nigeria doesn’t have a strong investment culture, and for Gen Z, the reluctance towards investing stems from the perceived risks, with many prioritizing the certainty of savings over potential uncertainties. However, investment opportunities are still emerging for Gen Z, with significant potential for growth.”

Ogundeyi highlights that Nigeria’s investment culture faces challenges, and the perception of risk outweighs the allure of potential returns for many young Nigerians. Limited access to mainstream credit pushes Gen Z towards more risk-averse financial behaviors, further reinforcing the culture of saving.

Despite these challenges, Ogundeyi remains optimistic about the evolving financial landscape: “The economic climate plays a pivotal role and positive phases will spark interest in investments due to the potential to make good returns.”


In response to these trends, Kuda has embarked on initiatives to address lack of financial literacy among this demographic and bridge the gap between saving and investing.

Ogundeyi elaborates on Kuda’s approach: “We have redesigned the Kuda app to be more than just a place to manage money. We have integrated substantial educational content directly into the app — making it easier than ever for our customers, especially Gen Z, to learn and grow financially. Within the app, customers can also invest in global stocks at fractional prices using the Naira, including renowned options like Tesla, alongside Nigerian stocks.”

He also acknowledges the importance of private sector involvement in promoting financial literacy: “There is a growing trend in the private sector, where innovative businesses are actively engaging 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.”

For Ogundeyi, the long-term impact of these efforts is promising, noting as companies continue to prioritise financial literacy and provide accessible investment options, “we could have a positive mindset shift.”


“The ongoing expansion of credit options, coupled with a focus on continuous education, could lead to significant changes in how Gen Z perceives and engages with their finances. Ultimately, sustained financial literacy efforts, coupled with tangible results from investments, can contribute to a more informed financial ecosystem,” says Ogundeyi.