Nigerias Wealthtech Startups Scramble To Survive As Wealth Grows Scarce

Amid inflation, currency depreciation, and economic uncertainty, Nigerias wealthtech startups face a daunting question: Can investment platforms thrive where wealth itself is becoming scarce?

This question is particularly relevant as companies like Bamboo, Risevest, and PiggyVest grapple with a shifting landscape, navigating a wave of challenges at home while making strategic moves abroad.

PiggyVest's latest Savings Report for 2024 highlights just how grim the economic situation has become. Inflation has skyrocketed, rising from 25.08 in 2023 to 32.15 in 2024. Nearly 90 of the 10,000 Nigerians surveyed have experienced a sharp increase in expenses.

Income remains low as 37 earn below NGN 100 K USD 60.00 monthly and another 28 earn no income at all, while the proportion of Nigerians earning within various higher income brackets between NGN 100 K and NGN 1 M has dipped significantly relative to the previous year.

As a result, savings habits have deteriorated. As much as 43 of respondents are unable to save at all while only 47 of respondents say they save monthly, a steep drop from 64 last year. The burden of inflation and rising costs is palpable. As one Mr James Uche, a civil servant, lamented, "The increase in school fees, electricity tariffs, and even the cost of fuel has made it very difficult to continue saving."