What do you think about when it comes to investing in Nigerian Naira? Do you really believe the odds will be in your favour investing in Nigerian Naira?
I know you have heard financial experts tell you how to invest your money in stocks and shares, landed properties, or maybe do a fixed deposit with a bank or a savings account. After all, some banks give better saving account rates to others.
I am not saying you shouldn’t listen to them but guess what? The joke is on you.
Imagine you change $3000 to 1 Million Nigerian Naira last year and put it in a fixed deposit for a year. It matures to NGN1.1 Million. But on converting it back to dollars, you are left with barely $2000.
Up till now, many people do not know that Nigeria’s minimum wage is 30000 Nigerian Naira. This is because the government has failed to provide jobs so youths even beg for NGN15000 to NGN20000 paying jobs. Right now, that NGN10000 job seems like a luxury.
Well, let us consider all things being equal (which is not the case). Let us assume you are even earning up to the minimum wage, 30000 Nigerian Naira is barely $70 (google rates). And it only gets worse.
FUN FACT: Do you know that even if you decide to save 1000 Nigerian Naira (Nigeria’s highest currency) every day, at the end of the year you will not even have up to a thousand dollars. This is assuming Naira does not depreciate against the dollars anytime soon (it is highly unlikely that it remains at this rate till next year).
Let us assume in 2014, you have a property you were collecting NGN600000 for per annum. Fast forward to 2021, the same property now fetches you NGN900000 per annum. You are thinking to yourself “wow! You can never go wrong with lands and properties investments”.
Well, I hate to break it to you but in 2014, the exchange rate was NGN158.6 to a dollar while today’s exchange rate is NGN413 to a dollar. Now doing simple calculation, in 2014 you were smiling to the bank with approximately 3780 USD every year while today you have no choice but to manage your 2180 USD. Well, considering Nigeria’s standard, that is more than enough reasons not only to smile but to laugh and be grateful.
Do you feel foolish yet? Well, hold up, not so fast. Let us compare the naira to other currencies used in Africa. But before that, have you ever wondered why it seems most of our brothers who come back from The United States of America, The United Kingdom, or any other country overseas (no matter the size) tend to spend lavishly as if money is not hard to come by? Well maybe the list below will help you with some perspective:
Botswana: 1 Pula = ₦38.38
Cape Verde: 1 Escudo = ₦4.54
Algeria: 1 Dinar = ₦3
Egypt: 1 Egyptian Pound = ₦26.38
Eritrea: 1 Nakata = ₦27.25
Ethiopia: 1 Birr = ₦9.67
Gambia 1 Dalasi = ₦8.06
Kenya: 1 Shilling = ₦3.85
Liberia: 1 Liberian Dollars = ₦2.40
Lesotho: 1 Loti = ₦29.26
Libya: 1 Dinar = ₦92.51
Morocco: 1 Dirham = ₦46.66
Mauritius: 1 Rupee = ₦10.18
Mozambique: 1 Metical = ₦6.99
Namibia: 1Namibian Dollar = ₦27.74
Seychelles: 1 Rupee = ₦26.27
Sudan: 1 Sudanese Pound = ₦1.01 (Even Sudan has better currency)
Swaziland: 1 Swazi Lilangeni = ₦29.25
Zambia: 1 Kwacha = ₦22.74
South Africa: 1 Rand = ₦29.22
Ghana: 1 Cedi = ₦71.65
Tunisia: 1 Dinar = ₦151.48
In case you were not counting, these are 22 currencies better than your naira. and I am sure there are more.
What this means is that if you are earning in any of the above currencies (as funny as it may sound), you are automatically a big boy in Nigeria. In fact, you might get an invitation from The EFCC (Economic and Financial Crimes Commission) to come and explain where you are picking money from. On your way to go answer The EFCC invitation, you might get abducted by The Nigerian Police (SARS) for good looks.
Now imagine you were earning in standard currencies. Then everybody would consider you a ritualist.
As at today, google exchange rates are:
$1 = ₦413
€1 = ₦501
£1 = ₦582.33
We all know that there is no way banks will charge you at these rates for your transactions. In fact, banks will not even give you hard currency. So you will be sourcing for these currencies on your own in the black market.
Even at this “generous” rates, ₦1,000,000.00 is approximately $2,400. Hence the saying, invest in naira at your own folly risk.
I know it is really not fair to compare as no two men are equal but I just couldn’t help but to bring to your notice some of the world leaders and their portfolio which is a direct reflection of what they have to offer their citizens:
Putin (Russia): Lawyer
Joe Biden (America): Economics degree
Merkel (Germany): Ph.D. Physical Chemistry
Xi Jinping (China): Chemical Engineering and Doctor of Law
Ghanian President: Doctorate holder
Buhari (Nigeria): WAEC (West African Examinations Council) not found
So to some of you who think it will get better or expecting a growing economy under this administration, I just want to point out to you that you don’t give what you don’t have. But since the country is on a constant autopilot cruise, we can keep up with the jokes. At least laughter is good for the body and soul in order to keep safe from depression.
My advice to you is to find a way to make passive income and save in dollars. You would definitely thank me later.
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Looking for a cheat code on how to save in Nigeria? Or you want to work smartly towards not losing your earnings in the future? I believe it is about time for you to consider making passive income and saving in dollars. For more tips, drop your contacts below