Nigeria savings rates rise to 7–8% but remain below inflation, leaving households with negative real returns and weakened purchasing power

Nigerians are expected to continue experiencing weak purchasing power despite banks increasing savings interest rates, as inflation continues to outpace returns on deposits, according to an analysis by Daily Sun on Tuesday.

Also read: Nigeria Inflation Eases to 15.06% in February

Several deposit money banks (DMBs) have adjusted savings rates following recent changes to the Central Bank of Nigeria (Central Bank of Nigeria) benchmark policy rate.

Some commercial banks now offer savings rates of around 7–8 per cent annually to encourage deposits and support financial savings.

Wema Bank updated customers that its savings interest rate has been increased to 7.95 per cent per year, covering accounts such as Savings Accounts (Tier 1–3), Open Wallet, Non-Individual Savings Accounts, Salary Savings Accounts, Purple Accounts, and SMART Save Accounts.

Customers are expected to earn roughly N7,950 per year on a N100,000 deposit before tax if withdrawal limits are not exceeded.

Accounts exceeding four debit transactions per month may forfeit interest for that month.

Despite the increases, households remain concerned as the rates are still below the country’s inflation level.

The National Bureau of Statistics (National Bureau of Statistics) reported that headline inflation eased slightly to 15.06 per cent year-on-year in February 2026, down from 15.10 per cent in January.

However, food inflation rose to 12.12 per cent year-on-year, highlighting continued pressure on essential household expenses.

David Adonri, Vice Chairman of Highcap Securities, said rising food, transport, and energy costs continue to strain disposable incomes, limiting the ability of households to save or spend.

Okezie, National Chairman of the Progressive Shareholders Association of Nigeria, added that while higher savings rates may attract deposits, the real value of household wealth is still eroded by inflation, leaving depositors with negative returns.

Recent CBN policy tightening aims to stabilise prices and manage inflation expectations.

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However, experts caution that improvements in real purchasing power will take time, and rising living costs may continue to outpace nominal interest earnings.