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Nigeria’s biggest banks are sitting on a gold mine of customer deposits. Recent reports show that the top 10 banks now hold about ₦33.24 trillion in savings, up from about ₦31.13 trillion the previous year.

That is an enormous amount of money parked in basic savings accounts. For banks, this is cheap and stable funding. For most Nigerians, however, this money is not working hard enough.

The real question is not how much people are saving, but what those savings are doing for the people who own them and for the wider economy. In many cases, the honest answer is that the money is doing very little.

The Problem with Idle Savings

Traditional savings accounts pay low interest. Once inflation, bank charges and the falling value of the naira are taken into account, many savers are actually losing value in real terms.

People keep money in savings mainly out of fear: fear of emergencies, school fees, hospital bills or job loss. Savings accounts feel safe, familiar and easy to access, even if there is little gain.

If banks and regulators are serious about building wealth for citizens, they must shift from seeing customers only as deposit holders to seeing them as partners in investment.

From Passive Savers to Active Investors

Banks can help Nigerians move from being passive savers to becoming active investors, without pushing them into risky or confusing products. The journey can be gradual. A customer may start with a simple salary or savings account, then build an emergency fund, and then move a portion of their money into low-risk investments. Over time, that can grow into a more balanced, diversified portfolio.

This kind of step-by-step progress is possible if banks design products and journeys with ordinary people in mind, not only big corporates and high-net-worth clients.

Mutual Funds as the First Easy Step

Mutual funds are a natural starting point. They are professionally managed, can accept small amounts and are regulated. Many banks already work with asset management firms, but most customers do not know what is available or how these funds work.

Instead of hiding mutual funds in a corner, banks should bring them to the front of their mobile apps and online banking platforms. A customer should be able to move a small amount from savings into a simple money market fund with one or two clicks.

The app should clearly explain expected returns, risks and fees in plain language. Practical examples, such as showing how much more a customer could have earned in a fund over the past year, can make the benefits real.

Unlocking Government Bonds for Ordinary People

Government bonds are another powerful tool. Federal Government of Nigeria (FGN) bonds and Treasury Bills are backed by the government and are seen as some of the safest naira assets. Yet many people think bonds are only for pension funds, big institutions or very rich investors.

Banks can change this by packaging bonds into friendly, easy-to-understand products. For example, they could offer a “Federal Savings Plan – 3 years” with a low minimum amount, so that even small savers can join.

They can allow customers to set automatic monthly purchases in the same way they set standing orders. This would help ordinary people protect and grow their money, while also giving government a more stable source of funding for roads, power, schools and hospitals.

Structured Deposits and Goal-Based Saving

For customers who still feel nervous about the word “investment”, banks can create structured deposits that look and feel like savings but give better returns.

For example, a bank could offer a deposit where interest increases if the customer does not withdraw money for six or twelve months. It could design goal-based plans for rent, school fees or a house deposit, where funds are locked for a fixed period and partly invested in low-risk instruments. This respects the emotional need for safety while quietly improving how hard the money works.

None of these ideas will work without strong financial education. Nigerians are cautious for good reason. Many have seen scams and Ponzi schemes wipe out life savings. Banks must earn back trust with clear teaching and open communication.

They can use mobile apps, USSD, emails, SMS and social media to explain how these products work in simple English and local languages. Short videos, step-by-step guides and easy calculators can show the difference between leaving ₦100,000 in a basic savings account and moving part of it into a money market fund or bond for a few years. Regular online sessions or in-branch “wealth clinics” where customers can ask questions freely would also help.

Protecting Customers from Mis-Selling

As banks move savers into investment products, they also carry a serious duty of care. The goal must not be to push people into high-risk products they do not understand.

Regulators and banks must work together to make sure products are clearly labelled according to risk, fees are visible and fair, and staff are trained not to mislead customers.

A widow with a small savings balance should not be advised to put her money into a volatile equity fund when a low-risk income or money market fund is more suitable. One or two big scandals could destroy trust and send millions of people running back to cash and basic savings.

Why This Shift Matters for the Economy

If even a small share of the ₦33trn currently in savings is moved into well-regulated investment products, the impact could be huge. Government would have more long-term funding for infrastructure through bonds.

Companies would find it easier to raise long-term capital through deeper and more liquid markets. Ordinary Nigerians would have a practical path to building real wealth over time instead of watching their money slowly lose value.

Financial inclusion would also deepen. People who see their money growing are more likely to stay within the formal financial system and use more services, from pensions to insurance.