When Funmi Adebayo’s phone rang with a medical emergency call last November, her first thought wasn’t about health insurance. The 27-year-old graphic designer knew she didn’t have any. Instead, she opened her Piggyvest app and withdrew ₦185,000 from her savings to cover the urgent health expenses.
“I never called it an emergency fund,” Adebayo explains. “I was just trying to save monthly for a laptop. But when the emergency came, that money saved my family.”
Her experience reflects a shift among young Nigerians who are bypassing traditional insurance to build their financial safety nets through digital savings platforms. With insurance penetration below 1% of GDP, far below the global average of 7%, and fewer than one in five adults covered by health insurance according to a 2024 NOI Polls report, millions are taking financial security into their own hands.
For many, platforms like Piggyvest have become their primary defence against life’s uncertainties, from job losses and rent increases to family obligations and business opportunities.
The trust deficit
Insurance is designed to protect against unexpected losses, pooling premiums to cover accidents, health emergencies, or property damage. Globally, it underpins economic stability. Yet for young Nigerians, it often fails to meet their reality. Fluctuating freelance incomes, the gig economy, and rising costs create a mismatch between traditional insurance models and users’ needs.
Click to view“I’ve never really considered using an insurance app. I’m not even sure I know how it works,” says Kemi Olanrewaju, a 23-year-old content creator from Lagos
Olarenwaju says she would rather save on fintech apps like Piggyvest instead of trying to figure out how insurance works. “At least I know the money is actually there when I need it.”
This scepticism isn’t unfounded. Joshua Chibueze, Chief Marketing Officer and Co-founder of Piggyvest, acknowledges the challenge facing traditional insurers.
“Many young people don’t fully understand how insurance works, think it’s something designed for older, wealthier people, or worse, they often don’t trust it,” Chibueze explains. “The delayed claims or stories of people not getting payouts have made insurance feel tedious.”
The contrast with digital savings platforms is stark. “Saving on Piggyvest is simple and immediate: you know what you’re putting away, you can see it grow, and you can withdraw it when you need it,” he adds.
Economic realities driving change
Nigeria’s economic climate has made traditional insurance less appealing for young adults facing job instability, rising costs, and healthcare uncertainties.
David Okafor, a 26-year-old freelance software developer, represents Nigeria’s growing gig economy. His income varies between ₦80,000 and ₦300,000 monthly, depending on projects. “Piggyvest lets me save as little as ₦1000 when times are tough and even more when I land a big client. It adapts to my reality.”
Okafor discovered his approach worked during the 2020 lockdown when projects dried up. “I had ₦180,000 locked away. It covered feeding and my daily expenses for some time while I searched for remote work.”
Piggyvest’s internal data supports this pattern. Chibueze reveals that during economic shocks like the COVID-19 pandemic, the platform observed “noticeable spikes in emergency withdrawals.”
“A large number of users don’t label their savings as emergency funds, but that’s how they end up using them,” he notes. “It shows that even if people aren’t formally planning for emergencies, their savings on Piggyvest often become their financial lifeline when the unexpected happens.”
Building discipline through technology
Unlike traditional insurance, which pools risk across policyholders, digital savings platforms focus on individual financial discipline. Piggyvest’s automated features help users build reserves gradually without the immediate pinch of large premium payments.
Adebayo, the graphic designer, started with small daily savings of ₦1,000. “The app would deduct it automatically. I barely noticed it was gone, but it added up when I needed it the most.”
Her approach evolved over time. She now maintains multiple savings pots: daily automated savings for short-term goals, locked funds for emergencies, and investment accounts for long-term growth. This layered strategy provides different levels of access for various financial needs.
“I have money I can access immediately, money locked for three months, and money locked for a year,” she explains.
The complementary approach
Despite their growing popularity, Piggyvest’s leadership doesn’t position digital savings as a replacement for insurance. Chibueze emphasises their complementary role.
“We don’t see ourselves as a replacement for traditional insurance products, but as a complementary layer of financial security that is more accessible to Nigerians,” he explains. “Insurance is crucial for covering specific risks—health emergencies, accidents, and property loss. What we offer is something foundational: the discipline to build a financial cushion.”
The platform’s approach recognises that many Nigerians lack access to formal insurance. “Think of us as the first line of defence before your insurance kicks in, if you have any,” Chibueze adds. “If your car breaks down or you have a medical emergency, the emergency fund you’ve built in Piggyvest can step in immediately.”
Financial education through practice
Beyond savings, platforms like Piggyvest are inadvertently providing financial education. Users learn about interest rates, compound growth, and risk management through practical experience rather than theoretical instruction.
Olarenwaju discovered investment principles through the platform’s features. “I started just saving, then I tried their investment options. Now I understand how to balance risk and growth.”
The platform offers various tools that users adapt for different purposes: automated daily savings for building habits, locked savings for discipline and higher returns, goal-oriented savings for specific objectives, and immediate-access funds for unexpected needs.
Chibueze sees this educational aspect as crucial for Nigeria’s young adults. “Many young Nigerians are building their financial foundations for the first time, with little guidance. Piggyvest is stepping into that gap by simplifying what used to feel complex or out of reach.”
The trust factor
Central to these platforms’ success is transparency, a quality often missing from traditional insurance products. Users can track their money in real-time, understand exactly how interest is calculated, and access funds quickly when needed.
“Nothing builds trust like word of mouth,” Chibueze observes. “Every other day, people share how Piggyvest has helped them pay for school, buy a car, launch a business, or handle emergencies. It’s real Nigerians vouching for us.”
This transparency extends to the platform’s operations. “Fast, immediate, and consistent payouts is perhaps our strongest proof point,” Chibueze explains. “Once a user withdraws and gets their money immediately, the game changes. They tell others.”
The company has maintained a perfect payout record since launching in 2016—a track record that matters in a market where financial scams are common.
The new way Nigerians handle financial security
As Nigeria’s digital economy grows, the relationship between traditional insurance and alternative financial products continues evolving. Rather than replacing insurance entirely, digital savings platforms are filling gaps that conventional products haven’t addressed.
For users, these platforms provide something insurance often cannot: immediate control, transparent terms, and flexibility that matches their economic realities.
“We’re becoming that platform where you put your money and also learn to grow it,” Chibueze explains of Piggyvest’s long-term vision. The company plans to expand beyond savings into a comprehensive ecosystem supporting users throughout their financial journeys.
Whether this shift is temporary or signals a lasting change in how young Nigerians manage their finances is still unclear. What is certain, however, is that traditional financial institutions are under pressure to meet the expectations of a generation that prioritises transparency, flexibility, and instant access over conventional approaches to risk.
For now, millions of young Nigerians are voting with their phones, choosing apps over agents, automation over administration, and personal control over pooled protection.
