SAVINGS BEHAVIOUR AND WEALTH ACCUMULATION: A COMPARATIVE STUDY BETWEEN NIGERIA AND SOUTH AFRICA

Abstract

Wealth accumulation remains a pressing economic challenge in Nigeria and South Africa, influenced by factors such as savings behavior, employment status, banking accessibility, and interest rates. This study employs a comparative quantitative approach using secondary macroeconomic data from national financial reports, economic surveys, and institutional databases to analyze these variables' impact on wealth accumulation. Multiple regression analysis shows that savings behavior positively influences wealth accumulation with coefficients of β = 0.304 in Nigeria and β = 1.516 (p = 0.042) in South Africa. Employment status also significantly affects wealth accumulation, particularly in South Africa (2.859) compared to Nigeria (2.711). Banking accessibility has a marginally significant positive effect in Nigeria (1.978) but is insignificant in South Africa (-0.735). Interest rates show no significant impact in either country. The findings highlight the importance of financial literacy, employment growth, and banking infrastructure in enhancing wealth accumulation. Consequently, the study recommends implementing nationwide financial literacy programs aimed at reaching one million individuals annually via digital platforms and institutional training to strengthen savings behavior and foster sustainable wealth-building strategies.