March 9, 2024
Look around you . . . see anything? Look again. . . still find nothing?
Sorry, check your pockets . . . uhh, your bank accounts . . . the naira left you too, and the ones in your pockets are worth less than what they seem.
Economic landscapes undergo fluctuations, and you must be equipped with effective personal finance strategies to navigate the challenges of a dwindling Naira. Whether facing inflation, currency devaluation, or economic uncertainties, I have identified key strategies to fortify your finances and safeguard your financial well-being.
This article is inspired by recent economic experiences in Nigeria, where the naira seems to be on a free fall, against the United States dollar. So before we dive into the ‘hows’, let’s establish the ‘whys’ of economic uncertainty and personal finance.
Nigeria is a peculiar and interesting country. The air here feels different, and so does every other thing in this terrain. Oil Price Volatility, External Debt and Borrowing, Foreign Exchange Rate Fluctuations, Security Challenges, Policy Uncertainty, Infrastructure Deficiency, Corruption and Governance Issues, Unemployment and Social Unrest, Dependency on Imports, Inflationary Pressures, and maybe Demographic Challenges are some of the few conditions that exacerbate the economic crisis in Nigeria.
Enough said about the ‘whys’, but take another look at that list, some of these conditions can be avoided, but we are Nigerians and we have to survive.
So, how do you live above these challenges? Walk with me.
- Create a Resilient Budget:
In times of economic uncertainty, a well-crafted budget becomes your financial compass. Evaluate your income and expenditures, cutting unnecessary expenses, and prioritizing essential needs. A lean budget ensures that your financial resources are allocated efficiently, providing a buffer against the impact of a dwindling dollar.
- Emergency Fund Prioritization:
The importance of an emergency fund is magnified in a dwindling Naira economy. Aim to set aside three to six months’ worth of living expenses in a dedicated emergency fund, preferably in a dollar or any other strong foreign currency. This financial cushion serves as a safety net, offering peace of mind and financial security during unexpected events or economic downturns.
- Diversify Income Streams:
This can never be overemphasized. Relying solely on a single income source can expose you to heightened financial risk. Explore opportunities to diversify your income, whether through part-time work, freelance gigs, or passive income streams. Diversification enhances your financial resilience and mitigates the impact of economic fluctuations.
- Debt Management and Reduction:
High-interest debt can be a significant financial burden, especially during economic downturns. Prioritise debt repayment, focusing on high-interest obligations. Consider debt consolidation or refinancing options to alleviate financial strain and free up resources for savings and investments.
- Invest Wisely:
In a dwindling Naira economy, strategic investment decisions are crucial. Diversify your investment portfolio across various asset classes, including stocks, bonds, and precious metals. Explore all opportunities to invest in sectors that traditionally perform well during economic uncertainties.
- Explore Inflation-Resistant Assets:
As the purchasing power of the dollar weakens, consider allocating a portion of your investments to assets that historically resist the impact of inflation. Real assets like real estate or commodities such as gold can act as a hedge against the depreciating value of currency.
- Continuous Financial Education:
Stay informed about economic trends, fiscal policies, and global financial developments. Continuous financial education empowers you to make informed decisions, adapt to changing economic conditions, and position yourself strategically for long-term financial success.
- Negotiate Living Expenses:
In a dwindling Naira economy, proactive negotiation of living expenses can yield significant savings. Engage with service providers to explore cost-saving measures, loyalty discounts, or alternative plans that align with your budget constraints.
- Savings in Precious Metals:
Traditional stores of value, such as precious metals (gold and silver), often gain prominence during economic uncertainties. Consider diversifying a portion of your savings into precious metals to preserve wealth and mitigate the impact of currency depreciation.
- Adopt a Conservative Approach:
Exercise prudence in financial decisions and adopt a conservative approach to risk. Avoid overleveraging, and prioritise capital preservation. A conservative financial stance enhances your ability to weather economic downturns and emerge financially resilient.
In conclusion, a proactive and diverse strategy is needed for effective personal money management in a bearish-naira bullish-dollar world. Notwithstanding the difficulties brought on by economic uncertainty, you can strengthen your financial base, reduce risks, and put yourself in a position for long-term financial success by putting these measures into practice.
Written by Okodi Okodi
www.
twitter.com/Okodi_KOD
Two African teams currently at the African Cup of Nations, Afcon; Nigeria and Ivory Coast will be presenting formidable opposition to the Argentine national team in March of 2024.
The Official social media handles of Argentina made announcements about the games.
The selection of two African teams was motivated by the lack of a formidable European opponent or a location with advantageous logistics.
The Argentine football team will play two African opponents during the friendly window in March when it travels to China, the AFA announced on Monday, following an agreement with a Chinese corporation.
The Albiceleste’s two longtime allies, Nigeria and Ivory Coast, will put them to the test as they get ready to defend their continental crown in the US.
During their tour of China, Argentina will play Nigeria at the Olympics Sports Center stadium in Hangzhou.
It will be the tenth high-level match between Nigeria and the Argentine national team, with the latter leading the former in the FIFA rankings at 42.
In particular, their five World Cup meetings have resulted in victories for the Albiceleste (2-1 in 1994, 1-0 in 2002, 1-0 in 2010, 3-2 in 2014, and 2-1 in 2018).
The other win came in a friendly match in 2011 when Argentina won 3-1 in Dhaka, Bangladesh.
The only ever draw was in the King Fahd Cup (0-0) in 1995; the other two losses were in friendlies, with the most recent one occurring in Abuja in 2011 and from 2-4 at Krasnodar, Russia, in 2017.
The Super Eagles of Nigeria have progressed to the quarter-finals of the ongoing Africa Cup of Nations after a 2-0 win over Cameroon’s Indomitable Lions at the Felix Houphouet Boigny Stadium in Ivory Coast on Saturday.
Nigeria will face Angola; who also got a win over Namibia in the same stage, in the quarter-finals February 2, as they hope to claim a fourth continental title after previous wins in 1980, 1994 and 2013.
It was a blockbuster clash that had generated reviews as the old rivals squared off yet again at the continental showpiece, but it was the Nigerians who made short work of their eastern neighbours with a comfortable victory in Abidjan.
Nigeria had a goal disallowed in controversial circumstances after defender Semi Ajayi found target in the ninth minute off Ademola Lookman’s corner that was parried into the pathway of Simon Moses, before Semi got his attempt.
Moroccan referee Redouane Jiyed ruled out the goal for offside after consulting the Video Assistant Referee.
The Super Eagles, however found the back of the net in the 36th minute after Osimhen displayed strength and alertness to win possession off Oumar Gonzalez just outside the penalty area, then picked out Ademola Lookman with a diagonal pass to the right of the penalty area and the Atalanta winger’s shot squeezed in through Ondoa’s gloves to give Nigeria the lead.
Ademola Lookman grabbed his second of the night just before the 90th minute mark after a quickly worked free-kick on the left, from which Alex Iwobi sent Calvin Bassey clear inside the box. Bassey found Lookman and the winger’s measured finish hit target once again through Ondoa’s fingers on a night to forget for the Cameroon goalkeeper.
October 16, 2023
The Consumer Price Index (CPI), which measures the change in prices of goods and commodities, increased to 26.72 per cent in September compared to 25.80 per cent in the preceding month, the National Bureau of Statistics (NBS) said Monday.
The upsurge in inflation is mainly linked to the removal of petrol subsidies and the devaluation of the official exchange rate, both exerting substantial impacts on consumer prices.
It said, “September 2023, the headline inflation rate increased to 26.72 per cent relative to the August 2023 headline inflation rate which was 25.80 per cent.
“ Looking at the movement, the September 2023 headline inflation rate showed an increase of 0.92 percentage points when compared to the August 2023 headline inflation rate.
“On a year-on-year basis, the headline inflation rate was 5.94 per cent points higher compared to the rate recorded in September 2022, which was 20.77 per cent.
” This shows that the headline inflation rate (year-on-year basis) increased in September 2023 when compared to the same month in the preceding year (i.e., September 2022).”
Year on year, food inflation rose to 30.64 per cent, or 7.30 per cent rise compared to 23.34 per cent in September 2022. Core inflation, which excludes the prices of volatile agricultural produces and energy, stood at 21.84 per cent year on year, up by 4.35 per cent when compared to the 17.49 per cent recorded in September 2022.
