The gap between what Nigerian banks pay on savings and what inflation takes is 22 percentage points. That gap has a name: it is called getting poorer quietly.
Let us start with a number. The average savings account in a Nigerian commercial bank pays between 1.25% and 4% interest per year. Inflation in Nigeria, as of early 2026, is running at approximately 24%. The difference between what your bank pays you and what the economy takes from you is, in the best case, 20 percentage points. In the worst case, it is closer to 23.
This means that if you had ₦1,000,000 sitting in a standard savings account at the beginning of 2025, you have approximately ₦960,000 in real purchasing power today — even if your account statement says ₦1,040,000. The bank gave you ₦40,000. Inflation took ₦240,000. You are down ₦200,000 and your account balance went up. That is not saving. That is the appearance of saving.
“The bank gave you ₦40,000. Inflation took ₦240,000. You are down ₦200,000 and your balance went up.”
“The bank gave you ₦40,000. Inflation took ₦240,000. You are down ₦200,000 and your balance went up.”