Think your savings are safe? Discover how to protect your money from the Naira crisis (depreciation and inflation) with smart, practical strategies.
Having a piggy bank as a child was fun, but still using one now—hiding it in your wardrobe, filled with all your dreams and savings—might be cute but also dangerous.
The Naira is falling, and it’s not waiting for you to catch up. Even if you pretend not to notice, inflation will slap you with it at the market or fuel station. Whether your savings are under your mattress or sitting pretty in a local bank account, if they’re not structured right, they’re losing value every day.
So, how do you actually protect yourself? Let’s talk real strategies for navigating the naira crisis, Nigeria’s volatile economy and ensuring your money isn’t just paper in the near future.
The Depreciation in Naira and Your Savings
Have you ever wondered how this clamour about the naira value losing its value affects you? Well, cast your mind back to a couple of years back and remember how you were able to purchase a truckload of things with only a couple of naira. Done?
Today, that same amount of money can only buy a few things. Exactly!
When you do not safeguard your money correctly, in the next few years, all of your savings, which you think are a fortune, might not be worth much. This simple analogy indicates that the naira can not be used as a storage value; at best, it is a medium of exchange.
Inflation-Proof Finances: The Way Forward
Nigeria’s economy can feel like an unpredictable storm, shaping our daily lives in ways we never anticipated. Simply put, Nigeria and the naira crisis can happen to you in many ways. The rising cost of living and uncertain financial future may seem overwhelming, but there are ways to take control. Instead of letting inflation dictate your future, here’s how you can stay ahead and secure your financial stability.
Diversify Your Savings
First, do not put all your eggs in one basket except you run poultry and have an endless source of them. And for you, that would mean you have a tree that produces money in your backyard. Highly unlikely. So, spread your savings across different asset classes, such as foreign currency, stocks, bonds, and real estate.
Use a Foreign Currency Account
Maybe let us get a little realistic; how can you possibly invest your #5000 savings in real estate? All hope is not lost. Just open a foreign currency account with a Nigerian bank to save money in a foreign currency. Banks that offer this service include First Bank, Zenith Bank, and Guaranty Trust Bank, to mention a few.
Invest in Real Estate
Real estate is the absolute goldmine for obvious reasons. Over time, landed properties and even rentals appreciate. Therefore, exploring real estate investment opportunities can provide a hedge against inflation and naira depreciation.
Starting now could mean that you will be a real estate mogul in the next few years. Doesn’t that sound enticing? Here are some real estate agencies with affordable investment options you can explore: Adron Homes and Properties, PWAN Homes, and Land Republic.
Invest in Dollar-Denominated Assets
The naira might not be a sound currency in which to store value, but you know what? The dollar! What about investing in dollar-denominated assets, such as US Treasury bills or foreign stocks, to hedge against naira depreciation? How does a Nigerian invest in foreign stocks? There is a bad reputation to consider.
Well, stay with me. All you need is a brokerage account with an online broker that offers international trading; yes, like the intermediaries. And you can start your journey to financial freedom.
Take Advantage of High-Yield Savings Accounts
Want an easy route that does not involve a lot of work? This might be it. Another that can be done is to stay ahead of your competition, in this case, inflation. Some banks in Nigeria offer high-yield savings accounts that can help your money grow faster than inflation. UBA bumper savings account, for instance, Fidelity bank high yield savings, etc.
Savings Apps
Savings apps, such as PiggyVest or Cowrywise, can help you save money automatically and earn interest on your savings. What more? PiggyVest also brings to your notice possible investment options so you can invest, save, and earn interest all in one place!
Consult a Financial Advisor
Finally, nobody does it like an expert, and if you have read up until now and still feel you were not made to stress so much. That’s fine, too. You only need a financial advisor who can give you personalized advice on safeguarding your savings against naira depreciation and inflation.
Do Something. Anything. Just Don’t Wait.
Nigeria’s economy can “happen to you” if you don’t happen to it first. Safeguarding your savings against the naira crisis requires a long-term perspective and a well-thought-out strategy. As such, you want to take your time and come up with a foolproof plan, but what you should not do is “do nothing”! Get to work.
