IMF ranks Nigeria 11th in Sub-Saharan Africa with highest private savings

The International Monetary Fund (IMF) has ranked Nigeria in 11th place among countries with the highest private savings in Sub-Saharan Africa (SSA).

IMF stated this in a research paper published on its website dubbed, ‘Private Savings and COVID-19 in Sub-Saharan Africa,’ and obtained by Ripples Nigeria on Thursday.

The paper re-examines the main private savings determinants in Sub-Saharan Africa (SSA), followed by an analysis of the COVID-19 pandemic’s impact on private savings in SSA and other country groupings.

For Nigeria according to the IMF private savings increased from about 19 percent in 2019 to about 24 per cent in 2022.

Read also:IMF retains 3.4% growth prospect for Nigeria amid soaring inflation

According to the report, savings were the most important source of financing for Nigerian households survival during COVID-19, followed by loans, goodwill, and working.

Generally, IMF added that private saving rate in SSA increased during the last two decades to an average rate of 17.3% in 2019 from 11.5% in 1983.

Angola is in first place with the largest private savings in SSA with about 55 percent while Gabon and Congo came second and third with 42 percent and 41 percent respectively.

“Private saving rates, as expected, are particularly low in fragile states and low-income countries (LICs)”, it pointed out.

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