Over 70% of Nigerian income earners pay “black tax” monthly or occasionally – Report 

Published by PiggyVest, the report shows the extensive financial burden many Nigerians face due to the black tax.

According to the report, while 46% pay black tax monthly, 25% do so occasionally. This cultural obligation, although rooted in community support, significantly affects the financial stability of individuals in a challenging economic environment.

The report noted, “Black Tax still remains a significant expense for Nigerians. According to our survey, almost 1 in 2 income earners consistently set aside a portion of their monthly income to support extended family members. This extra financial burden puts additional pressure on already limited resources, especially in a struggling economy,” 

Also, the report reveals that about 43% of Nigerians do not save at all, making black tax a considerable strain on already limited financial resources. For those who do save, the added pressure of black tax can hinder their ability to build a secure financial foundation.

The report also noted that compared to the previous year, the proportion of Nigerians earning over N500,000 monthly fell sharply from 14% to just 6%.

Also, 10% of respondents reported beginning to contribute to an emergency savings fund within the last year.

These savings behaviours reflect a growing awareness of the need for financial preparedness, though the overall savings rate remains low, with many Nigerians struggling to set aside funds due to ongoing economic constraints.