It is no secret that the Nigerian economy has been unfavorable for the average Nigerian more than ever. The price hike has been unbearable for many, and we have seen the middle-class quadrant get smaller, and many pushed down the poverty line. Every Nigerian is asking most of the time, “how did we get here, and what can an average Nigerian do to stay above water in a time like this?”
To answer the question about how we got here;
The over-dependency of the nation on the importation of foreign goods and services is a significant trigger that sets off inflation when there is a devaluation of the Naira, which tends to happen frequently. The higher cost of doing business is quickly passed on to the consumer as companies try to maintain their profit margin. In more recent times, fuel scarcity and price hikes, insecurity, and higher taxes have also contributed to the inflation we are experiencing as a nation.
We have seen an almost 200% increase in diesel prices in the past month. In a country plagued by the epileptic power supply and where most businesses depend on generators to keep running, this alone further skyrockets the cost of production for businesses.
According to CBN, the average inflation rate on food in the last 12months is 19.69%. Still, based on my day-to-day experience as an average Nigerian, I say that the inflation in food is at least 100% because almost every food item is now double the price of what it used to be. I know this is the everyday experience of every average Nigerian. From my current survey in my city, house rent has gone up at an alarming rate.
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How can we navigate this to maintain the current standard of living when employers are not necessarily eager to increase wages?
The first thing I tell people in my community, and I practice myself, is to cut back on all excesses. Honestly, this is not the time to overspend on Aso-Ebi you will probably never wear again. You need to aggressively engage your money management skills to more productively utilize your current financial resources.
You should actively invest in yourself and up-skill to charge more for your services, and if you are a business owner, you might want to think of ways to improve your product, provide more value to your customers and charge more for it.
Investing in fixed income, paper assets like mutual funds, and bonds can also provide passive income.
The bottom line is that when there is inflation such as this, we all need to increase our income to maintain or grow the current living standard, which should be your focus. Many Nigerian youths have turned to freelance on international platforms to earn more by providing services to individuals, business owners, and corporate bodies.
Think innovatively about legitimate ways to make more money in your field or business, save more and create passive income through investing.
Keep thriving.
Ifeoluwa Adegoke is a Certified Financial Education Instructor (CFEI), money expert, and an author. She’s a strong believer that everyone can attain financial freedom only if they know how to achieve it.
She founded MTWI financial advisory services to provide millennials and GenZs with financial education that is practical, the knowledge needed to take control of their finances, and the power to make informed decisions to financially secure their current and future selves.
Due to her passion for financial education and her personal experience with saving money and building wealth, she is passionate about helping everyone that cares to listen change their money stories and achieve real financial success.
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