The difference now lies not in whether people save, but in how they save.  Reports from the National Bureau of Statistics (NBS) highlight this shift, showing inflation in Nigeria climbing from 22.41% in May 2023 to a peak of 34.80% by late 2024.

While temporary cooling occurred in early 2025, the overarching trend underscores a stark reality – cash that isn’t generating interest is rapidly losing its purchasing power.

For many Nigerians, the instinct to put money aside remains strong but without structure and strategy, those savings often fail to deliver real value and results.

Money kept idle may offer liquidity and accessibility, but may not preserve value effectively over time.  To achieve financial growth, saving must evolve from passive storage to intentional planning.

For generations, informal saving methods such as keeping cash at home or participating in contribution schemes like ajo or esusu have served as accessible financial tools. While these systems encourage discipline and community trust, they come with clear limitations in a modern economy.

Physical cash steadily loses value due to inflation, meaning what seems sufficient today may purchase far less in the near future. Easy access to such funds also increases the likelihood of impulsive spending, weakening long-term financial discipline.

More importantly, money kept outside formal financial systems does not grow. It earns no interest, gains no value, and misses the compounding effect that drives wealth accumulation.

Contribution schemes, while helpful for short-term goals, are often rigid and do not generate returns, they help rotate money, but not multiply it.

To build and maintain a meaningful financial backbone, savings must be aligned with purpose. An emergency fund, for instance, remains the foundation of financial stability, but leaving it in low-yield accounts limits its potential.

Placing such funds in flexible savings options that offer daily interest based on the terms and conditions allows individuals to manage access while still earning modest returns. For funds that are not immediately needed, fixed savings or deposits provide a stronger pathway to growth.

By committing money for a defined period in interest-bearing savings accounts, savers can benefit from interest rates that may assist in preserving value over time, subject to prevailing economic conditions, while also reducing the temptation to spend impulsively.

Many individuals report that setting clear savings goals and maintaining disciplined saving habits can improve confidence in managing personal finances.

Saving with clear goals further strengthens financial discipline. When individuals align their savings with specific needs such as rent, education, or business capital, and automate contributions, they remove the uncertainty and inconsistency that often derail financial plans. Over time, this approach builds both confidence and stability.

The difference between merely saving money and actually growing it becomes more evident over time. Funds placed in interest-bearing accounts benefit from compounding and gradually increase in value, while idle cash continues to lose purchasing power. What appears safe on the surface may, in reality, be diminishing.

The emergence of tech-enabled financial platforms like FairMoney has made structured saving more accessible, offering individuals secure and transparent ways to save and manage their funds.

FairMoney MFB operates under the oversight of the Central Bank of Nigeria (CBN) and is insured  by the Nigeria Deposit Insurance Corporation (NDIC), subject to applicable coverage limited and regulatory conditions, providing an added layer of confidence.

Ultimately, financial security is not determined solely by income, but by how effectively available resources are managed and grown. Intentional saving is about making money work with clarity, discipline, and purpose.

In an uncertain economic environment, that shift from simply keeping money to adopting a structured savings approach can form an important component of long-term financial planning.

The post How a Regular Savings Culture Can Support Long-Term Financial Stability  appeared first on Tech | Business | Economy.

Henry Obiekea, the managing director of FairMoney MFB, speaking during an interactive session with journalists in Lagos, highlighted the company’s evolution from a digital lender into a full-service, credit-led neobank with strong regulatory compliance and an expanding product suite.

“We want to be close to different stakeholders so that we can consistently tell our stories and let everybody know what we are about,” he said. “That really is the idea behind this engagement.”

FairMoney: From a Lending App to a Regulated Neobank

The MD recalled that FairMoney began operations in Nigeria in 2017, founded by Laurin Hainy and two other co-founders with a mission “to build a financial services home for the underserved and the underbanked.”

Initially known for instant, unsecured consumer credit, FairMoney expanded significantly after securing its microfinance banking licence (MFB) in 2021.

“That was a game-changer for us,” he said. “It meant we could offer additional services, current accounts, payments, transfers, debit cards, and move much closer to the vision of a full financial services home.”

In 2023, the bank added SME lending and merchant payment services, marking a major strategic shift.

“We’ve moved from a pure consumer focus to serving SMEs as well, helping them accept payments and providing working capital loans,” Obiekea explained.

Building a Bank on Local Deposits

While FairMoney is VC-backed, the MD disclosed that the bank took deliberate steps early on to reduce FX exposure by raising local currency funding.

“Very early in our journey, we recognised the importance of raising local currency,” he said. “We issued private notes, commercial papers, and built a savings product that encouraged deposits from individuals and corporates.”

The result, he noted, is that FairMoney is now “primarily funded by deposits,” giving it stability and resilience.

‘We Are a Credit-Led Neobank’

The MD described FairMoney’s identity succinctly:

“We like to say we are a credit-led neobank. Started with credit, and now we look like a bank, with deposits, debt, and equity. That is how we’re structured now.”

Going forward, he said the bank will focus on deepening its footprint in the microfinance banking space and expanding its product breadth.

On Competition and the Future of Banking

Speaking on evolution in the banking sector, the MD said the Nigerian market is due for reorganisation.

“Every five to ten years, you have some form of reshuffling,” Henry Obiekea observed. “Our internal thesis is that within Nigeria’s top five banks, you will see fintech-based players. We are positioning ourselves to be one of them.”

He noted that customers of traditional banks increasingly migrate to digital-first institutions due to better user experience, product innovation, and faster service delivery.

Ethical Lending and Loan Portfolio Quality

Addressing questions on FairMoney’s loan book and repayment challenges in the tough economic environment, the MD stressed the company’s commitment to ethical collections.

“We don’t do unethical practices. We have very strict internal guidelines—even when we use external agencies,” he said.

He added that while macroeconomic pressures have led to higher defaults across the industry, FairMoney’s eight years of lending data gives it a strong edge.

“Data is currency,” he said. “We’ve amassed a trove of proprietary data that helps us distinguish high-risk from low-risk customers. Our models keep improving.”

FairMoney also partners with credit bureaus and uses customer-consented bank statements to enrich credit assessment.

“We can only be sustainable if we maintain a high-quality loan book,” he added.

On Regulation: Improve What Exists, Not Create Something New

When asked about the proposed single fintech regulator, the MD argued in favour of improving the current multi-regulator system rather than adding a new layer.

“We already have CBN, NDPC, FCCPC and others. If a new regulator is created, it won’t replace them. It will only add to the list,” he noted.

“My preference is to improve collaboration and engagement with the regulators we already have.”

Toward Authentic Financial Inclusion

The MD also shared his views on FairMoney’s philosophy of “authentic financial inclusion.”

“It’s not just financial inclusion, it’s economic inclusion,” he said. “If people don’t have money or don’t trust the system, they won’t save. Inclusion must come with fairness, transparency and ease of access.”

He hinted that FairMoney is working on new offerings aligned with this philosophy.

The Road Ahead

FairMoney says its ambition is clear: deepen its market, expand offerings, strengthen governance, and compete shoulder-to-shoulder with Nigeria’s biggest banks.

“It’s an exciting challenge, but one we are ready for,” the MD concluded.

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