7 Ways to Survive the ‘New’ Nigeria Under Tinubu

The hope for a new Nigeria, a country that works, is bleak. With severe inflation, a weak currency, widespread poverty, food shortages, and the wobbly policies of President Bola Tinubu government, it’s clear worst days are ahead.

To be fair to the Tinubu administration, these issues stem from years of avoiding necessary decisions on productivity and budget control.

During prosperous years, instead of capitalising on its oil and gas resources and expanding into non-oil exports, Nigerian leaders chose to spend extravagantly, ignoring signs of declining development.

Corruption has also played a significant role in depleting the country’s resources. Under President Muhammadu Buhari, Nigeria’s economic problems worsened, leading to huge deficits.

But as usual, Nigerians are used to adapting to hard times. Interestingly, even the rich are feeling the pinch of the current condition.

Millions of Nigerians are changing their lifestyles to cope with the economic challenges caused by the subsidy removal and inflation. 

With a proposed minimum wage of N62,000, it’s clear that these difficulties are here to stay.

Here are some tips to help you survive in the new Nigeria:

7 Ways to Survive in the New Nigeria

1. Effective budgeting

This is the best way to keep track of what you earn and what you spend, guiding you towards your financial goals. By monitoring your budget, you can increase your savings, reduce your debt, and maintain a comfortable lifestyle. Importantly, having a reliable income is the foundation of any budgeting plan.

To get started, you should ask yourself several questions:

• How much am I earning? What am I spending my money on?

• Is it possible to save with my current income?

• How much of my income should I be saving versus spending?

• Is there potential to increase my earnings?

Budgets need to be flexible; they should adapt to changes in your circumstances. For example, you might decide to invest money saved for a car into something more profitable, like stocks.

Once your budget is set, focus on reducing unnecessary expenses. This is key to improving your financial health and freeing up more money for things like savings or paying off debts.

2. Needs Over Wants

Distinguish between what you need and what you want. Spend on essentials first and save luxury or non-essential purchases for later. This can significantly reduce frivolous spending.

 3. Say no to eating out

Eating out often adds up quickly. Cooking at home is cheaper, and you’ll have full control over what goes into your food. Planning meals ahead can also save time and cut costs. However, if you have to eat out, find a budget-friendly restaurant or canteen and resist the urge of overspending.

4. Reduce Your Energy Costs

Take the time to review and negotiate your monthly bills and subscriptions. You might find cheaper alternatives or realise there are some you can do without. For example:

• Turn off bulbs and electrical appliances that are not in use.

• Check which is cheaper for you, whether to cook with gas or electricity, because even cooking gas prices have risen.

5. Limit Your Movement

Limit your outings because they make you spend more money on transport or fuel.

If possible, work from home, maybe two days a week. This will reduce your fuel consumption if you have a car or reduce your transportation cost if you don’t.

6. Maximise the Power of Savings

Savings are crucial for financial stability, helping you manage emergencies and invest in opportunities. But the value of your savings really comes into play when they can keep up with or even outpace inflation.

If inflation rises by 10%, what was enough money to buy something today might not be enough in just a few months.

For example, if you save N300,000 to buy a tricycle, and inflation kicks in, the price could jump to N330,000 before you know it.

To make sure your savings don’t lose value over time, consider putting your money into interest-bearing investments like stocks, bonds, or funds in sectors like microfinance and manufacturing. These can help your savings grow and even exceed the rate of inflation.

However, saving money isn’t always straightforward. Many of us live paycheck to paycheck, and it can be tough to think about setting money aside when you’re just trying to cover your bills.

Despite the challenges, saving money is possible even when the budget is tight. A small, consistent saving habit can build up over time.

By starting small and staying consistent, you can turn even modest amounts into a solid financial cushion, giving you more security and the ability to take advantage of opportunities when they arise.

7. Have More Than Two Sources of Income

This is the best time to work extra hard and smart. Consider getting a remote job that pays in a different currency, building a business, and exploring other legitimate jobs and business opportunities.

Diversifying your income streams can provide financial stability and help you weather economic challenges more effectively.