Recently, the news was all over the place that Nigeria’ economy has entered a recession. This has been described as one of the worst recessions Nigeria has experienced in four decades. Rildwan Bello shares tips on how Nigerians could weather the storm in the new economy. Here are the excerpts as shared from his newsletter.
A week ago, news came out that Nigeria officially entered her biggest recession following the earlier contraction in the economy. A recession is announced when the economy contracts consecutively. This happens as purchasing power drops drastically, leading to lower economic activities, and the industries recording negative productivity. To make this self-explanatory, we (Nigeria) are broke and can’t afford to buy a lot of things again. This has in turn affected a lot of industries that survived on the back of our patronage. Which then creates less revenue for the government, often leading to job loss and economic stagnation. Here are some tip to survive the time:
Assess your skill stacks: in one of my past posts, I’ve talked about skill stacks and the argument in support of having multiple skill sets. I personally favour a skill set that is not limited by location, provides you the opportunity to earn remotely, start life afresh anywhere, and better leverage. For example, as a writer, programmer, or creative, you can create for an audience worldwide.
Deepen your expertise: This is critical as you try to target beyond your geographical location and earn better. The demands will be high and this requires a solid body of work or experience to back it up. This is because the competition is no longer about your neighbour Kunle but talents across the world.
Broaden your target customer: Explore every means to earn in FX, provide services beyond the border of Nigeria. While this will not be a ride in the park, it’s upside is very high if successful. If you are not earning in dollars, you can earn better in Naira too with a good client base and excellent service. This is only possible with investments in your knowledge base, sharpened skill set, and strong relationship.
Embrace ruthless financial discipline: It’s not sufficient to earn money then blow it. Having a disciplined approach to a financial lifestyle is a great life-saving skill that one can have. It further prepares you for life shock and also grants you opportunities to explore in situations like this. For example, some people might be selling off assets, which can be a great buy and investment for you during this period.
Austerity measures: This is the best time for the famous “there is rice at home” line. Cutting unnecessary spending and financial habit is a great act in this period. Thus, avoid getting the guilt trip into financial recklessness that comes with December as you prepare to unwind a really tough year.