Nigeria's Dependency Ratio Projected at 77% by 2025

Nigeria's dependency ratio is projected to reach approximately 77% by 2025, according to the World Bank, meaning that for every 100 working Nigerians, there are 77 dependents, primarily children. This high dependency ratio contributes to financial challenges, including low savings rates and limited access to loans.

The article discusses the implications of this ratio on household economics, highlighting that a high dependency ratio results in thinner savings and a shallow pool of loanable capital. It references Charli Robertson's work, which connects low interest rates to economic growth.

The article suggests that Nigeria could benefit from policies similar to those implemented in South Korea and Bangladesh, which focused on family planning and female education, leading to economic dividends. It emphasizes that addressing the dependency ratio through deliberate policy changes could enhance savings rates and economic growth, ultimately improving the financial landscape for Nigerians.