Rising living costs are making it harder for Nigerians to build financial buffers, leaving many households vulnerable to unexpected expenses as inflation continues to erode disposable incomes. While financial advisers still recommend keeping three to six months’ worth of living expenses in emergency savings, many Nigerians are asking a practical question: is that target still realistic?
Experts say the traditional benchmark remains useful, but the amount each person should save ultimately depends on income, spending patterns, and job security.
“It is somewhat realistic but requires a high level of discipline because inflation has eaten up people’s income and the average Nigerian just wants to survive first,” said Titilayo Daramola, a fixed-income analyst. “Food, which is the most basic necessity, now takes up most people’s income. So I would say it is not totally realistic for many households.”
Rather than becoming discouraged by the three-to-six-month target, Daramola advised people to start small.
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