How to Make the Best Out Of Bad Economic Situation

Before the 2023 general elections, the greater majority of the masses, especially the youthful population were excited about a particular presidential candidate for obvious reasons. It was a similar feeling before the 2015 presidential election. A hope of a messiah who is incorruptible and one who has the numerous problems of Nigeria all figured out. In the heat of the campaign, we maintained that it doesn’t matter who becomes the next president and that 2023 and beyond may be even tougher and more challenging economically than ever seen in the country.  And recent events have proven us right, hence the need for you to learn more ways for you to strategically position yourself to make the best out of the bad situation in Nigeria today.  We hate bad news, but it seems that we are not at the bottom yet as such the economic situation may still get worse before getting better.

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In our projections for 2023, what we didn’t foresee though, was the Naira scarcity occasioned by the poor handling and implementation of the Naira redesign policy of the central bank of Nigeria. The scarcity led to the loss of jobs and business as you already know and the economy is yet to recover and heal from that saga. Today, another harsh reality is stirring us in the face; the final removal of fuel subsidies without a drop in local refining capacity just yet.  We support the fuel subsidy removal 100% and we have been in support since 2012 when formal president Goodluck Jonathan attempted to remove it.  But at this point, we think it will only take a miracle for Nigeria as a people and a nation to survive the economic hardship, job and business losses that this exercise will throw up. 

Haven said that we think that Nigerians should be apologizing to ex-president Goodluck Jonathan for demonizing him when he tried to save the country by removing the fuel subsidy.  Then, the price of fuel rose to N150, labour, and all the ‘uncivil society’ groups, a.k.a APC agents were all on the street striking and protesting; and occupying Nigeria.  But under the APC government who eventually succeeded in wrestling power, without removing the subsidy we all bought fuel at N195 a litter and now that the subsidy is finally out we are now buying at N650 per litre and labour and everyone seem cool. The irony of life you may say. That’s by the way, moving on.

Also, read: The Reasons Why Food Crisis May Heighten In Nigeria Going Into 2023 [3 Life-Saving Tips]

The Mess We Are In

The CPI and inflation report, in the last four years, has been on a steady upward trajectory to the current rate of 22.22 per cent as of April 2023. What that means is that the purchasing power of your money no matter the currency denomination is consistently depreciating.

The worst is that we are not just battling with the soaring cost of food and living generally. We are also dealing with the issue of a high exchange rate of over N740 a dollar. With the dollarization of Nigeria's economy, the high exchange rate is the major cause of inflation in Nigeria, a consumer nation with little or no productivity.

The rising debt profile is another gigantic demon we have to battle going forward as a nation. According to the DMO, Muhammadu Buhari’s government left Nigeria with about N80 trillion in debts, representing a debt-to-GDP ratio of over 38 per cent.  That is notwithstanding about N10 trillion deficits in the 2023 budget. Omoyele Sowore the presidential candidate of the African Action Congress, AAC best described the situation as

President Muhammadu Buhari borrowing Nigeria back to Stone Age  

 Fuel Subsidy Removal: Good Policy, Bad Implementation

As far as we’re consigned this government have not started on a good note, even as we hope they can prove us wrong in the weeks and months to come before the harmful impact will be too late to avert.  Some state governments are reducing work days to 3 for their staff and they will still earn full wages. Mind you, work in the Nigerian system is never about productivity, but about sharing in the national patrimony.  The question that will most likely be unattended will be what then happens to private employees who may not have that luxury of earning without commensurate productivity?

President Bola Ahmed Tinubu affirming subside removal after handover without putting anything in place to cushion the effect does not show bravery as suggested in some quarters as such, does not really show leadership if leadership is really about the welfare and wellbeing of the led.  Setting up a committee now to fashion out ways to minimize the impact is like setting the cart before the horse, an afterthought. There may be no going back, but the impact will be long-lasting both on the positives as well as the negatives.  But to put it mildly, it’s not only the common masses that will suffer momentarily [maybe a few months or even years] but the economy of the country will also suffer greatly.

The labour and TUCs are silent on the prospect of a higher minimum wage. Government of the elites and for the elites. It’s about them and nothing else matters. The government will increase the minimum wage of its workers to pacify the labour unions.  By increasing the minimum wage, the government wage bill in at least the next four years will increase without any proportionate increase in productivity from both the government [elected or appointed] and the civil service.  What will the government then do to balance out the budget? Your guess is as good as mine. How they will tackle the deficit is where it should worry us all. The government will borrow more and print more banknotes.  The resultant effect is of course more inflation.  You will have more money with much-reduced purchasing power. N200,000 minimum wage will make little or no difference from N30,000 minimum wage in actually uplifting and positively impacting the living standard of the people.

Way Forward: Responsibility for Your Financial Future

If you are hoping and waiting for this government to come save the situation from the mess of the previous administration, you might be disappointed just as the majority of Nigerians are regretting their actions and/or inaction in 2015 as the messiah the hoped for in General Mohammad Buhari didn’t quite turn out so. You must take responsibility for your financial outcome and we’re here to keep you steps ahead of the money game by bringing you timely deep researched information on income diversification, money-making and management skills and many more.  To be previewed on all of these follow and subscribe to this blog.

The Power of Intention in Achieving Financial Prosperity

Many people are waiting and hoping that things get better. The bad and good news is that things don’t get better, it's people that do get better.  “What goes up must come down” [gravity] used to be true and absolute up until a superior law came into place [aerodynamics]. Now things have the legitimacy to go up and stay up and the only way for you to meet up is for you to go even higher.  Some people are already applying austerity measures, trying to cut down costs by engaging in only very necessary expenses and movements. People are compulsorily learning to live within their means. But the truth is that the best way to live is not to live within your means, but to expand your means through knowledge. And that is what every information we provide in our articles in this blog is about.  We are not necessarily bringing new ideas, but helping you look out at things that were hitherto not working before from a different perspective. And questioning and challenging some status quo and some of the truth you already know for better and more rewarding outcomes.

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