If you were like most children growing up in Nigeria, your childhood would have been pretty much predictable. Early morning prep for school, long-awaited “closing time” bells, evening NEPA outages, neighbourhood friends with strong bonds, and holiday period. This was the rhythm of life. Money wasn’t necessarily a topic for children, except when it involved pocket money or the occasional snack demands. Like many households, the unspoken rule was: parents work, children study, and somehow, everything falls into place.
However, adulthood in Nigeria comes quickly, and when it does, it hits quite differently than you might have imagined. One minute, you’re celebrating your NYSC POP, and the next, reality checks in. You’re staring at your first salary alert, wondering how you’re going to survive the month – rent, transportation, feeding, and the ever-present “black tax”, that makes you question if this was the same adulthood you prayed for.
Today’s constantly changing reality of Nigeria’s economy and the inflation rate, which, according to the Nigerian Bureau of Statistics, stood at 22.22% as of June 2025, makes it clear that earning money is only half the battle; keeping and growing it is the real hustle. No little wonder that the “Japa” wave still sweeps strongly across the nation. According to the 2024 Afrobarometer Report, “71% of people with post-secondary school qualifications, 63% of urban residents, and 60% of citizens between age 18 to 35 have considered leaving the country”.
Though navigating adulthood in Nigeria often feels like a survival sport, migration might not be a guaranteed solution for everyone. The real question is how we can make the “impossible”, “possible”.
How can you pay your bills in your 20s and still grow your finances?
Building wealth in Nigeria as a young professional starts with a mindset shift. It is less about how much you earn and more about the systems you put in place early, which help you approach your income differently.
Reality check: Wealth starts with systems, not salary size.
Is having a retirement savings account important?
One of the most underrated wealth tools in Nigeria is a Pension. A common misconception about pensions is being pegged as a micro-income scheme, usually for elderly folks who can’t seem to engage in any form of meaningful employment, just to survive their old years.
This misconception has robbed most young professionals of utilising a pension as a strategic financial tool to start building wealth even in their 20s.
So, what is pension?
In simple terms, pension is money you set aside from your earnings during your working years. This contribution is made by both the employer and employee, 10% and 8% monthly contributions, respectively, and is later paid to you as income in your retirement years.
The truth is, Nigeria’s pension industry has grown massively since the 2004 reforms. Today, the numbers are hard to ignore. As of February 2025, PenCom asserted that pension assets had already crossed ₦23 trillion. For young professionals, this is a sign that the system is stable enough to be part of a long-term wealth plan.
Let’s break it down in practical terms.
Pension Math Vs Savings Math
Assume your,
- Salary: ₦200,000/month
- Pension contribution: 10% employee (₦20,000) + 8% employer (₦16,000) = ₦36,000 per month
- Pension invested with an average 8% annual return
Step 1: Your yearly savings: ₦36,000 × 12 months = ₦432,000/year
Step 2: Growth over time (with compounding)
Let’s check rough estimates.
- 10 years:
Savings = ₦4.32M
With growth ≈ ₦6.63M
- 20 years:
Savings = ₦8.64M
With growth: ≈ ₦21.35M
- 30 years:
Savings = ₦12.96M
With growth: ≈ ₦54.02M
With 30 years of consistent contributions and growth, you could retire with over ₦54 million from pension savings. This outweighs just saving in a basic account; you lose value to inflation, and the money doesn’t grow.
Pension is wealth because it forces consistency, leverages investments, and lets compounding interests work silently in your favour.
A simple Call to Action
So, what’s your 20s wealth plan?
If you’re in your 20s and serious about wealth, stop treating a pension like a salary deduction you can’t control. Treat it like your first investment account. Start small, stay consistent, and if possible, add voluntary contributions.
Platforms like Leadway Pensure PFA are reshaping what pension means for young Nigerians. As Nigeria’s leading PFA in digitalisation and pension education, Leadway Pensure understands that today’s young professionals want to stay on top of their finances with ease. That’s why they’ve introduced LISA, the Leadway Pensure Instant Service Assistant – a smart, AI-powered platform that puts your pension account literally at your fingertips. Whether it’s checking your balance, tracking your returns, or making voluntary contributions, LISA offers a personalized, seamless experience tailored to the fast-paced, digital-first lives of Nigeria’s young professionals.
Leadway Pensure also offers financial advisory services tailored for you, whether you are a freelancer, an entrepreneur, or a self-employed professional. Whether you’re climbing the corporate ladder or working remotely with clients around the world, they have a different fund portfolio that grows with your financial standing.
The truth is, building wealth in Nigeria is not impossible. The earlier you start, the louder your future self will thank you.
Ready to take the next step? Visit www.leadwaypensure.com to learn more. Follow Leadway Pensure on social media to stay plugged in with tips, tools, and updates that make understanding and investing in pension in your 20s seamless.
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