I’ve been troubled, for a long time, with what is happening to our economy.
It is why I have written this post today.
As at today, according to AbokiFX, a dollar is equal to N318.
This is the same dollar that was equal to N185 around this same time last year and we were still complaining.
Something is looming and a lot of Nigerians are not paying attention to it which is unfortunate because even the CBN has already warned Nigerians about it.
According to the CBN, our major source of international income (Crude Oil) that we heavily depend on is suffering.
Over the last few months, the price of oil has shrunk to about $30 per barrel.
And that is a drop from $84 that it was selling for as at August 2014.
As a result, our Government is earning less money than it used to earn.
The Naira is crashing.
And our government is in debt and practically broke.
You should know from the N65 per ATM withdrawal that the CBN is charging and the recent N50 per deposit charges.
In 2014, a financial analyst on the popular “Today on STV” morning show on Silverbird TV predicted that a dollar will rise to N200 per dollar in 2015.
But today, it is far worse than that.
A lot of people are putting the blame on Buhari.
Some are piling it up on the CBN governor.
But by doing so, they are avoiding the ONE important question they ought to be asking themselves which is:
“How do I reposition myself so that I will be protected even if the Naira eventually crashes to N750 per dollar?”
I am not saying the Naira will crash to N750 per dollar. I am just saying it is a wise thing to be prepared.
If you love yourself and your family (which I hopefully think you do), that question above is what you ought to be asking yourself right now.
You know why?
The reason is because…
Low oil prices and the ongoing Naira devaluation isn’t going to affect the big boys.
It is going to affect the average Nigerian who is not smart.
And the big boys I am talking about is not just politicians.
I am also referring to businesses who know what they are doing and average people who are in control of their income.
Here Are 3 Ways the Ongoing Naira Devaluation Is Going to Affect the Average Nigerian
Number 1 – Higher Cost of Goods:
The higher in naira it costs to exchange the dollar, the higher it will cost private companies and businesses to do business and make a profit.
For instance, since we import a lot of what we consume, Nigerian importers will spend more money to import, more than they had already budgeted to bring in foreign goods like rice etc
As a result, the prices of these goods will be on the increase and it is the average person that will bear the pain because:
Employers and the government won’t raise the salary of their employees because of this.
This means your current income will no longer be enough if you don’t make more.
According to a survey by Jobberman, only about 70% of Nigerians make up to N100,000 in a month which is barely enough especially if you stay in places like Abuja or Lagos.
If the Naira devaluation should continue, you may now need N100,000 to buy what N55,000 used to buy before.
This may be okay for people who control their income but hard for people who depend on others for what they earn.
In case you don’t know, it is happening already.
Number 2 – Higher Electricity Tariff:
Recently, even the electricity bill has gone up and you will have to pay for this from your income as well unless you don’t want electricity.
You can read more about this on this day newspaper if you are not aware.
Let’s just hope it won’t keep increasing.
Number 3 – More People Will Lose their Jobs:
A lot of people are already feeling the sting of losing their only source of income (their jobs) to the dwindling Nigerian economy. Even oil companies are laying off workers.
If your only source of income is from the government or your employer, then you need to start restrategizing because what about if your employer decides to resize and you are sacked in the process? I pray that won’t happen but you should be prepared.
The Way Out?
Unless you belong to the 5% of Nigerians who control billions and the economy, the only sure way to avoid the fall backs of our dwindling economy is by getting prepared.
Not by focusing your energies on situations you can’t control.
I once heard a wise man say that: “A quick way to frustrate yourself is to try to control factors or situations that are beyond your control”
Ordinary people who rant on social media or spend endless hours arguing about how PDP or APC should rule Nigeria are simply setting themselves up for frustration.
Think about it.
You can’t control Buhari. You can’t control what happens at the Central bank. You can’t control the price of oil and you can’t control the Naira devaluation.
The only thing you can control is what happens in your life and how you are able to bring in more money into your life to provide for yourself and your loved ones.
In short, if you do not have a plan to bring in more money into your life…you are basically betting on mere hope which is like taking a dangerous risk.
From what I have seen so far, the government does not have special plans for anyone.
Not when Nigeria has over 160 million people in it.
In fact, the government itself is looking for ways to get more money from you to fund the National budget.
Have you also asked yourself: “What am I doing to fund my personal budget?”
In simple English, what I am trying to say in this short post is that;
If the Naira devaluation continues, the ordinary Nigerian who does not take control of their income will:
- Have less money to spend.
- Spend more of the little to pay for fewer things.
- And some will even lose the job they currently have.
Again, in the midst of all these, some people who control their income or people related to such people are going to prosper.
If you do not want to wake up one morning without a kobo in your pocket, faced with hunger and nowhere to go, then start helping yourself now.
Start creating income that you can control.
Income you control is income that does not depend on the government or your employer.
It does not even depend on the economy because it is flexible like water and you can adjust it based on what the economy dictates.
Thanks for reading.
And may God help us all.