A recent study conducted by Kuda has reported that Gen Z’s ( young Nigerians) spend only 0.002% of their transactions on investments, while a significant 14.73% went into savings as opposed to Millennials (28 – 43) and Gen X (44 – 59) who invested slightly more, at 0.003% and 0.004%, respectively, yet saved less than Gen Z, at 12.79% and 13.43%, respectively.

The study noted that young Gen Zers were more inclined to save in today’s climate due to ongoing inflation, soaring food and fuel costs, and other financial challenges their parents did not experience as young adults.

The CEO and co-founder of Kuda, Babs Ogundeyi, speaking to Forbes Africa explained that Gen Zers’ reluctance to invest stems from the perceived risks, with many prioritizing the certainty of savings over potential uncertainties.

According to him, Nigeria doesn’t have a strong investment culture; however, investment opportunities are still emerging for young adults, with significant potential for growth.

Ogundeyi expressed optimism about the evolving financial landscape saying, “The economic climate plays a pivotal role and positive phases will spark interest in investments due to the potential to make good returns.

“There is a growing trend in the private sector, where innovative businesses actively engage 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,” he stated.