By Peace Udugba
Millions of Nigerians may be losing money despite diligently saving in their bank accounts, according to Izekeo Adegoke, Chief Digital Officer at Coronation Wealth.
In an opinion article, Adegoke argued that many savers are unaware that while their account balances continue to grow, the real value of their money is declining due to inflation.
According to him, the average Nigerian savings account currently offers annual returns of between 2 and 4 percent, while inflation stands at approximately 15.69 percent.
He explained that a saver with ₦1 million in a savings account could earn about ₦30,000 in interest over a year, bringing the balance to ₦1.03 million. However, the purchasing power of that money would effectively fall to about ₦790,000 in today’s terms due to rising prices.
“This is what economists call negative real returns, and it is the financial reality for the majority of Nigerian savers right now,” he said.
Adegoke noted that the preference for traditional savings accounts is rooted in historical experiences of economic instability, bank failures, currency devaluations, and financial uncertainty, which made saving in regulated institutions appear to be the safest option.
However, he argued that the financial landscape has changed significantly and that the concept of safety should be redefined.
“A savings account today is not a low-risk option. It is a guaranteed negative return dressed in conservative language,” he stated.
According to him, the real risk is not losing capital outright but allowing savings to steadily lose their purchasing power, making it more difficult to fund future goals such as education, retirement, and wealth creation.
He advocated for a shift from traditional savings to diversified investing, stressing that investment portfolios spread across fixed-income securities, equities, dollar-denominated assets, and alternative investments offer a better chance of outpacing inflation.
Adegoke said a diversified portfolio targeting annual returns of between 15 and 18 percent could potentially grow a ₦1 million investment to between ₦1.5 million and ₦1.6 million over three years, compared to about ₦1.09 million in a conventional savings account.
“The numbers are not subtle. They are decisive,” he said.
Highlighting Coronation Wealth’s approach, Adegoke said the company provides individuals with access to professionally managed portfolios across multiple asset classes, including dollar-denominated investments designed to hedge against naira depreciation.
He added that such opportunities, once largely reserved for institutional investors and high-net-worth individuals, are now accessible to a broader segment of the population.
According to him, sustainable wealth creation is achieved through informed decision-making, disciplined investing, and access to the right financial tools rather than speculative bets.
He concluded by urging Nigerians to rethink their understanding of financial safety.
“Safety is not a function of where your money sits. It is a function of what your money does,” Adegoke said, warning that the illusion of security provided by savings accounts could leave many Nigerians financially worse off over time.
He maintained that the greatest financial risk for many Nigerians today may not be taking excessive risks, but rather relying solely on traditional savings while inflation continues to erode the value of their money.
