"To start a business you need money and a plan for what to do. I’ve thought about starting a pedicure specialist place. There’s nothing like that in Lagos."
Victoria is a 21 year old woman living with her aunt, uncle, and two cousins in Lagos. She holds a high school degree and works at a local salon, but has big plans for the future, which she is working and saving aggressively towards. For the past three years she has been working, Victoria has changed jobs three times in search for one that meets her interests and pays enough to build her future. Though college is her primary savings priority, she is taking concrete steps towards starting a pedicure business. She also sends her extra money home to her mom. Sometimes, due to her rigorous and illiquid savings strategy, Victoria goes hungry at the end of the month. In spite of this, she remains hopeful.
How does Victoria manage the financial demands of meeting everyday expenses, investing in her education, and saving towards her future career goals?
by the numbers
Like Victoria, Confident Optimists are mostly middle to upper class, well-educated, young, and urban, who own businesses or are formally employed. Approximately 15 million people (14% of the Nigerian population) fall in this segment and are mostly from urban backgrounds.
SOCIOECONOMIC (SES 4-5)
HIGH INCOME VOLATILITY
More than half of Confident Optimists are women, and they are better educated and more technologically savvy than Nigerians on average. They are the financially healthiest segment in Nigeria, benefitting from the second highest earnings, relatively low income volatility, and effective planning habits.
Financial Behavior & Attitudes
SAVINGS BEHAVIOR & ATTITUDES
Confident Optimists exhibit high savings deliberateness and prioritize saving frequently in banks. They also aspire to share their savings with family and friends.
They save money extensively through groups and are the most frequent mobile savers in Nigeria. Their open and trusting nature, along with their embrace of technology, enables an active use of financial tools, including mobile money.
BORROWING BEHAVIOR & ATTITUDES
High levels of dependability, comfort holding debt, and trust in banks likely enable and drive Confident Optimists' slightly higher than average borrowing frequency from formal institutions.
They have by far the highest rates of mobile borrowing and mobile wallet usage in Nigeria. They also borrow through informal groups at rates similar to the national average.